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Hunt delays BSkyB takeover decision

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Image Culture Secretary Jeremy Hunt has kept the door ajar for News Corporation's planned takeover of BSkyB by delaying a decision on whether to refer the deal for a full-blown competition inquiry. In the wake of findings from media regulator Ofcom, Mr Hunt said the proposed takeover might be against the public interest in media plurality and he was minded to refer it to the Competition Commission. But before he referred the case, Mr Hunt said he was prepared to listen to special "undertakings in lieu" from News Corp as it sought to allay his concerns about the merger. Recent media reports suggested that News Corp has told the Government it might be prepared to make concessions to avoid a lengthy consultation, with separating Sky News from BSkyB one option said to be under review. Rupert Murdoch's News Corp, which also owns newspapers including The Sun and The Times, made an £8 billion approach in June to buy the 61% of BSkyB it does not already own. But a report by media watchdog Ofcom recommended that the proposed deal should be investigated further by the Commission. Mr Hunt said: "News Corporation says that it wishes me to consider undertakings in lieu which it contends could sufficiently alleviate the concerns I have, such that I should accept the undertakings instead of making a reference." Mr Hunt said he would ask Ofcom whether any of the measures suggested by News Corp address its concerns over media plurality and requested that the Office of Fair Trading is involved in the process. If the undertakings are accepted, a 15-day consultation period will commence, when parties will be able to express their views. There has been a storm of protest from other major media players, as companies behind the Daily Mail, Daily Telegraph, Guardian and Daily Mirror, together with bosses at broadcasters BBC, Channel 4 and BT, voiced fears that a deal would pose a threat to competition and media plurality. News Corporation said it believed Ofcom's analysis to be deficient in a number of ways and added that the level of plurality in the UK has increased since 2003, when the Communications Act was enacted. The media group said: "While Ofcom acknowledges that the combination of News Corporation and BSkyB would have a minimal impact on consumers and would not enhance News Corporation's ability to influence the news agenda, it nevertheless concludes that the transaction may be expected to operate against the public interest. "News Corporation has made a submission to the Department of Culture, Media and Sport setting out a number of issues with the Ofcom report. However, in the interests of progressing to a transaction, News Corporation has submitted an undertaking that we believe addresses Ofcom's concerns. We will continue to engage constructively with the regulatory process."

Dead gunman 'in battle over child'

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Image A gunman who shot himself dead after an overnight stand-off with police may have been locked in a battle to get access to his child. The dead man, named locally as Idi Atiba, 31, suffered fatal injuries when he blasted a sawn-off shotgun into his chest. The shot came after police worked through the night on Leagrave Common in Luton, Bedfordshire, to persuade him to give himself up. Friends of Mr Atiba said the confrontation began after an argument with his former girlfriend, who lives in a block beside the parkland. One woman, whose garden backs on to the park, told a national newspaper the gunman said to police that she would not let him see his child. She said: "He was telling officers he won't budge and was prepared to stay there for the next two days." The stand-off began after police responded to a 999 call claiming a gunman was walking around the Marsh Farm Estate, scene of several riots in the 1990s. They traced Mr Atiba to Leagrave Common at about 8.30pm and brought in up to 20 officers including dog handlers and specialist negotiators. Pictures of the scene showed police marksmen huddled behind a bullet-proof shield with Mr Atiba standing a short distance away. The stand-off ended in tragedy shortly before midday on Monday as the gunman approached a mobile phone thrown to him by police. Witnesses said he stood up and walked towards it as police shouted to him to keep the gun down before sitting down again and pulling the trigger. Armed police and paramedics rushed to his side but he died several hours later before he could be taken to hospital by air ambulance. A Bedfordshire Police spokesman said: "The incident has been referred to the Independent Police Complaints Commission (IPCC) and Bedfordshire Police are co-operating fully."

Economy shrinks in fourth quarter

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Image The economic recovery in the UK has suffered a shock blow as figures revealed that gross domestic product (GDP) declined by 0.5% in the fourth quarter, raising fears of a double-dip recession. The severe weather last month was almost entirely to blame for the unexpected plunge between October and December, which ended a year of economic growth in the UK, the Office for National Statistics (ONS) said. The decline in GDP - the first since the third quarter of 2009 - was driven by a 0.5% drop in the key services sector, which makes up more than 75% of the total economy. With this drop, total growth in 2010 stands at 1.4%, far below analysts' forecasts. The figure, which is a preliminary estimate and subject to revision, will raise serious concerns over the strength of the economy and its ability to withstand the coalition Government's deficit-busting austerity measures. Economists were expecting growth of between 0.2% and 0.6% in the fourth quarter - but warned that the adverse weather made it difficult to provide accurate forecasts. The dramatic contraction in GDP will seriously damage prospects for the economy over the next year, as Chancellor George Osborne rolls out his £81 billion package of spending cuts - which include hundreds of thousands of public sector job losses. The Chancellor received some relief from data released by the ONS revealing a lower-than-expected increase in Government borrowing in December - of £16.8 billion - which will ease pressure on the creaking public finances. But a fall in GDP output is likely to shake confidence in the ability of the private sector to pick up the expected slack in the economy and hold off a double-dip recession. But in the face of the figures, the Chancellor remained defiant. He said: "These are obviously disappointing numbers, but the ONS has made it very clear that the fall in GDP was driven by the terrible weather in December. We have had the coldest weather since records began in 1910 and this has clearly had a much bigger impact on the economy than anyone expected. It's notable that sectors of the economy that are less affected by the poor weather, such as manufacturing, continue to perform strongly, helping to rebalance our economy." A spokesman for the ONS said that, without the weather, GDP output in the fourth quarter was still likely to have been flat at 0%. Alarm bells over the impact of Arctic conditions last month have been ringing throughout January, as retailers, housebuilders and transport firms revealed a slump in activity as the big freeze took hold. The weaker-than-expected growth figures reduce the chance of an interest rate hike, which was looking more likely as stubbornly-high inflation continues to soar. Last week, the ONS revealed the Consumer Prices Index (CPI) rate of inflation rose to 3.7% in December, pushed higher by rising food and petrol bills. But Britain's creaking public finances received some relief as official figures revealed public borrowing increased by a lower-than-expected £16.8 billion in December. The figure, which excludes financial interventions by the Government, was a marked decrease on the £21 billion borrowed a year earlier, the ONS said.

Jo murder accused remanded again

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Image The man accused of killing Joanna Yeates has been remanded in custody again after his legal team declined to make a bail application. Dutch engineer Vincent Tabak, Miss Yeates's next door neighbour, appeared at Bristol Crown Court for a bail hearing. But no application was made for bail and he was remanded to appear at the same court next Monday. Members of the public and journalists filled the gallery of Courtroom 1 for the 10-minute hearing. A greying Tabak, who wore a red jumper, with the sleeves rolled up to his elbows, and dark trousers, appeared in the dock accompanied by five dock officers. He spoke just twice during the brief hearing. The clerk asked the clean-shaven, bespectacled 6ft 4in defendant if he was Vincent Tabak. He leaned forward towards the dock glass and replied: "Yes, that is correct." An interpreter attended the court but Paul Cook, representing Tabak, said she was not required today but did not rule out the need at subsequent hearings. Mr Cook said he would not be applying for bail today on behalf of his client, and Mrs Reddrop asked for a remand into custody and outlined the reasons. The judge agreed and said: "I shall not grant Mr Tabak bail as there has not been a bail application. Mr Tabak will be remanded into custody until the next hearing, which is the preliminary hearing on January 31. You will appear before me next Monday morning at 10am when for a preliminary hearing which will set out a timetable for the trial of your case." Tabak first appeared before JPs at Bristol Magistrates' Court on Monday, charged with killing the 25-year-old landscape architect some time between December 16 and December 26.

Double dip fears as economy shrinks

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Image Fears of a double-dip recession in the UK heightened after official figures revealed the economy unexpectedly shrank in the fourth quarter. The severe weather last month was blamed for the shock 0.5% plunge in gross domestic product (GDP) between October and December, the Office for National Statistics (ONS) said, and was driven by a decline in the key services sector - which makes up more than 75% of the total economy. Analysts warned the surprise decline - the first since the third quarter of 2009 - seriously damaged prospects for the economy as it takes the strain of the Government's sharp austerity measures. Chancellor George Osborne, however, remained defiant and said the coalition would not allow his plans for fiscal tightening to be "blown off course by bad weather". The City was alarmed by the figures as the FTSE 100 Index and pound both dropped, while pressure mounted on Bank of England governor Mervyn King, who is tasked with taming high inflation and supporting growth. Economists were expecting growth of between 0.2% and 0.6% in the fourth quarter but warned that the adverse weather made it difficult to provide accurate forecasts. Even without the Arctic conditions, the ONS said growth in the fourth quarter would have been flat quarter-on-quarter. The contraction in GDP shows the economy has weakened just as the Chancellor rolls out his £81 billion package of spending cuts, which include hundreds of thousands of public sector job losses. Economists warned the fall in GDP output has shaken confidence in the ability of the private sector to pick up the expected slack in the economy and hold off a double-dip recession - defined as two consecutive quarters of economic contraction. Jonathan Loynes, chief European economist at Capital Economics, described the figures as "shockingly bad". He said: "Although heavily affected by the weather, the UK's shockingly-bad fourth quarter GDP figures - showing a 0.5% quarterly contraction - raise serious concerns over whether the economy is in a strong-enough position to withstand the fiscal tightening." Mr Loynes expects the economy to rebound in the current quarter, as it did after poor weather in the fourth quarter of 2009, but other adverse forces, not least the impact of the latest VAT hike, could limit the size of the bounce. But Britain's creaking public finances received some relief as official figures revealed public borrowing increased by a lower-than-expected £16.8 billion in December. The figure, which excludes financial interventions by the Government, was a marked decrease on the £21 billion borrowed a year earlier, the ONS said.

Firth film racks up Oscar nods

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Image The King's Speech has been given a string of Oscar nominations - including best picture. Colin Firth is up for best actor for his role as stammering King George VI. Helena Bonham Carter is nominated for best supporting actress for her role as Queen Elizabeth in the film, set in Britain on the cusp of the Second World War and film-maker Tom Hooper has been nominated for best director. An ecstatic Firth said of his nomination: "Currently celebrating with my colleagues three feet above the ground. Not used to this much joy, or this much Champagne at this hour." Welsh-born Christian Bale is up for best supporting actor for his role as a boxer-turned-crack addict in boxing movie The Fighter. The King's Speech has a total of 12 nominations - more than any other film nominated for the 83rd Academy Awards. British director Mike Leigh has a nomination for original screenplay for Another Year. Danny Boyle and Simon Beaufoy are up for adapted screenplay for rock-climbing film 127 Hours. In other categories, graffiti artist Banksy is up for best documentary feature for his debut Exit Through The Gift Shop. British filmmaker Christopher Nolan has a nomination for best original screenplay - for which The King's Speech is also nominated - for box office blockbuster Inception. Nolan missed out on best director, for which he had been widely tipped, but Inception is up for best film alongside The King's Speech and 127 Hours.

Thousands of scam letters seized

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Image Police have seized thousands of scam letters aimed at luring potential British victims into handing over cash to fraudsters. Investigators said the items are designed to encourage people to invest in fraudulent schemes linked to lotteries, shares and inheritance claims. Overseas crooks attempt to persuade victims to transfer money to them with promises of valuable goods or bigger payouts that are never handed over. Officers at Scotland Yard's economic and specialist crime command intercepted the mailshot as part of a long-running inquiry. It was the first time police have moved to stem the flow of fraudulent junk mail before it reaches the letterboxes of potential victims. Police also shut down five rented post-boxes which are used to dupe victims into believing the companies are reliable and based in London. Those who reply to the first letter, known as a "tempter", are then added to so-called "sucker" lists which are traded among criminals. Victims are often vulnerable people, including the elderly and those suffering illnesses such as dementia. Police believe up to £3.5 billion is stolen from Britons every year, with as much as £2.4 billion being lost as a result of mail scams. Detective Superintendent Mark Ponting, of the Metropolitan Police, said: "The individuals behind this type of crime are cynical and pernicious, making their living by targeting and exploiting some of the most vulnerable and needy people in our society." The investigation began last year when detectives contacted 11 scam mail victims from across Britain who had been repeatedly targeted. They were asked to collect their post and pass it to police, who traced the letters back to their source with the help of Royal Mail and Spring Global Mail. The two companies agreed to alert police when the next shipment of post linked to the same source arrived in Britain.

Putin vows retribution for bombing

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Image Russian prime minister Vladimir Putin has vowed "retribution is inevitable" over the Moscow airport suicide bombing. Mr Putin has built much of his reputation on harsh statements, but he did not go into detail on his plans. No claims of responsibility have been made for Monday's attack at Domodedovo Airport, which killed 35 and left 180 injured. Suspicion has fallen on Islamist separatist insurgents from Chechnya or elsewhere in Russia's troubled Caucasus region who have been battling Russian authority for over 15 years. Chechen insurgents have claimed responsibility for an array of attacks in Moscow and elsewhere in Russia, including a double suicide bombing on the capital's subway system in March 2010 that killed 40 people. They also have hit Domodedovo Airport before, with two suicide bombers slipping through its security in 2004 to kill 90 people. Russian president Dmitry Medvedev described security at the airport as being in "a state of anarchy" and said management there must bear key responsibility for security failures. He also said government security officials would be held accountable for any lapses found. Airport management objected, saying transport police were responsible for the inspection of people coming into the international arrivals area, where the bombing took place. The finger-pointing could undermine confidence in Russia's security ahead of Mr Medvedev's high-profile appearance this week trying to attract investors at the World Economic Forum in Davos, Switzerland. The attack also called into question Russia's ability to safely host major international events like the 2014 Winter Olympics in Sochi and the 2018 World Cup. Mr Putin rose to power largely on his tough-against-terror image, including a famous vow that Chechen rebels would be hunted down and killed "in the outhouse". But despite launching the second Russia-Chechnya war and pushing hard against suspected rebels, he was unable to wipe out the Chechen insurgency during his 2000-2008 presidency.

Ex-Tory peer guilty over expenses

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Image A former Tory peer has been found guilty of fiddling his expenses. Lord Taylor of Warwick falsely claimed for travel and overnight subsistence, a jury at Southwark Crown Court decided by a majority of 11 to one. The 58-year-old told the House of Lords members' expenses office that his main residence was in Oxford, when he lived in west London. Taylor is the first parliamentarian to be tried and found guilty by a jury over the expenses scandal.

Andy Gray fired as sexism row grows

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Image Soccer pundit Andy Gray has been fired as the football sexism row deepens. The Sky Sports presenter, already in trouble over sexist remarks about assistant referee Sian Massey, was sacked "in response to new evidence of unacceptable and offensive behaviour" following an "off-air incident that took place in December 2010", the broadcaster said. Meanwhile Massey has been withdrawn from running the line at an npower League Two match between Crewe and Bradford by the Professional Games Match Officials organisation. Reporter Andy Burton has also joined Gray - a former Scotland international - and fellow Sky Sports presenter Richard Keys in being disciplined for comments about Massey. Burton has been stood down from Wednesday night's Carling Cup semi-final second leg match between Birmingham and West Ham after footage emerged of him referring to Massey as a "bit of a looker". Keys and Gray were dropped from Monday night's line-up for the match between Bolton and Chelsea after their off-air remarks were leaked. The pair were heard agreeing that female officials "don't know the offside rule" and predicted Massey would make mistakes during Wolves' home game against Liverpool on Saturday. She ended up correctly calling a crucial borderline decision. New footage has now been shown on Sky News of Gray asking a female colleague to help him tuck his microphone into his trousers. Former Wolves, Everton and Aston Villa striker Gray, who reportedly earns more than £1 million a year, is shown saying to colleague Charlotte Jackson: "Charlotte, can you tuck this down here for me?" She ignores the remark. Sky Sports said in a statement that it had terminated its contract with Gray. The statement said: "The decision, which is effective immediately, was made in response to new evidence of unacceptable and offensive behaviour. "The new evidence, relating to an off-air incident that took place in December 2010, came to light after Andy Gray had already been subjected to disciplinary action for his comments of 22 January 2011."

Firth hails Oscars 'royal flush'

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Image Colin Firth has welcomed the success of The King's Speech at the Oscar nominations as a "royal flush". The movie is in the running for 12 prizes, more than any other film at the 83rd Academy Awards. Its raft of nominations include best film, best actor for Firth, best supporting actress for Helena Bonham Carter for her role as Queen Elizabeth, and supporting actor for Geoffrey Rush, who plays an unorthodox speech therapist in the British movie. It is also in the running for best director for Briton Tom Hooper, cinematography, and original screenplay. Firth, 50, who has already landed a Golden Globe for his role as stammering monarch King George VI on the cusp of the Second World War, said after the announcement: "Currently celebrating with my colleagues three feet above the ground. Not used to this much joy, or this much Champagne at this hour." He told ITV News: "It's great, and it's the fact that so many of us are there, a royal flush. That's the best thing about it really, we'll be going together." Of his nomination, he added: "It's a little bit out of body. Your head spins and you try to process it but it's all good." Welsh-born Christian Bale is up for best supporting actor for his role as a boxer-turned-crack addict in boxing movie The Fighter. British director Mike Leigh has a nomination for original screenplay for Another Year. Danny Boyle and Simon Beaufoy are up for adapted screenplay for rock-climbing film 127 Hours. In other categories, graffiti artist Banksy is up for best documentary feature for his debut Exit Through The Gift Shop. British filmmaker Christopher Nolan has a nomination for best original screenplay - for which The King's Speech is also nominated - for box office blockbuster Inception. Nolan missed out on best director, for which he had been widely tipped, but Inception is up for best film alongside The King's Speech and 127 Hours.

Independent 'hacking' probe call

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Image The Director of Public Prosecutions has been urged to commission an investigation by an outside police force into the Metropolitan Police Service's handling of allegations of phone-hacking by the News of the World. Labour MP Tom Watson, a member of the House of Commons Culture, Media and Sport Committee, wrote to DPP Keir Starmer calling for "urgent investigation" of what he claimed could amount to "conspiracy to pervert the course of justice". His demand came after Mr Starmer announced on Monday that prosecutors will expand their review of evidence gathered during the phone hacking inquiry to include fresh claims from individuals who believe they have been targeted. The Crown Prosecution Service's (CPS) decision to widen its review, overseen by barrister Alison Levitt QC, adds to the pressure on the Met to reopen its investigation following the resignation last week of Downing Street communications chief Andy Coulson. Mr Coulson has faced a barrage of difficult questions about his conduct while editor of the News of the World. The paper's former royal correspondent, Clive Goodman, was jailed in 2007 along with private investigator Glenn Mulcaire. But Mr Watson said that the argument for another police force to look at the Met's handling of the case was now "insurmountable". He queried why Met officers investigating the allegations against Goodman did not interview other senior members of the newspaper's staff or conduct searches of their desks and computers, instead deciding to write to solicitors representing the News of the World to request information. And he said that the Met had failed to notify all those whose names appeared in paperwork seized from Mulcaire and had been "unco-operative" when requested to provide copies of the notes to lawyers acting on behalf of those who believe they may have been targeted for hacking. A Scotland Yard spokesman declined to comment on Mr Watson's call, saying only that the Met had not received a letter from him.

Counter-terrorism review criticised

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Image The Government's review of counter-terrorism powers should be about keeping people safe in their homes, "not keeping Nick Clegg safe in his job", according to shadow home secretary Yvette Cooper. Speaking as Home Secretary Theresa May prepares to outline controversial plans to reform the system of control orders for suspected terrorists, Ms Cooper said national security was too important to be dogged by "chaos and horse-trading" in Government. The issue is particularly fraught for the Liberal Democrats and Deputy Prime Minister Mr Clegg, who campaigned at the general election on a pledge to abolish control orders completely. The orders, which have been described as being akin to house arrest by critics, are likely to be replaced with "surveillance orders". The system of curfews will be eased, along with restrictions on the use of mobile phones and computers, but some controls are likely to be kept for a small number of individuals. It is understood the revised form of control orders could include concessions over pastoral care, education and work. There was "broad agreement" among ministers over the proposals at a Cabinet meeting two weeks ago and the issue was not discussed at yesterday's meeting, the Prime Minister's official spokesman said. Ms Cooper said the findings of the counter-terrorism review, which will be outlined in the Commons, "should be a chance for the Home Secretary to lead a serious debate and build a new consensus". "We must update policies and powers in response to ever-changing threats, looking too at new risks, prevention of radicalisation, handling intelligence and the framework of accountability," she said. "It should also be the moment for serious reflection on difficult measures that have been in place for years. "These are exceptional powers and no government would use them in an ideal world. But we have to face the uncomfortable problem of a small number of individuals who cannot be deported or charged, but where the police and security services want to prevent further terrorist activity." Ms Cooper said the Home Secretary must show that she has put the national interest above party political squabbling after a review process "characterised by delays, disarray and a politicised public debate between different parts of the government".

Three die as Egypt protests erupt

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Image Egyptian police fired tear gas and rubber bullets and beat protesters to clear thousands of people from a central Cairo square after the biggest demonstrations in years against President Hosni Mubarak's authoritarian rule. Two protesters and a police officer were killed in the nationwide demonstrations inspired by Tunisia's uprising, which also demanded a solution to Egypt's grinding poverty and were likely to fuel growing dissent in a presidential election year. Mobilised largely on the internet, the waves of protesters filled Cairo's central Tahrir - or Liberation - Square on Tuesday, some hurling rocks and climbing on armoured police vans. "Down with Hosni Mubarak, down with the tyrant. We don't want you!" chanted the crowds, as thousands of riot police deployed in a massive security operation that failed to quell the protests. As night fell, thousands of demonstrators stood their ground for what they vowed would be an all-night sit-in in Tahrir Square just steps away from parliament and other government buildings - blocking the streets and setting the stage for even more dramatic confrontations. A large security force moved in around 1am, arresting people, chasing others into side streets and filling the square with clouds of tear gas. Protesters collapsed on the ground with breathing problems amid heavy volleys of gas, and some 20 officers were seen beating one with truncheons. The sound of what appeared to be automatic weapons fire could be heard as riot police and plainclothes officers chased several hundred protesters who scrambled onto the main road along the Nile in central Cairo. Some protesters turned violent, knocking down an empty white police booth and dragging it for several yards before setting it on fire. A police pick-up vehicle was overturned and set ablaze behind the famed Egyptian Museum, and demonstrators also set fire to a metal barricade and blocked traffic on a major bridge over the Nile. Twitter later announced that its service had been blocked in Egypt, and said that Twitter and its applications had been affected.

Toyota announces new vehicle recall

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Image Car manufacturer Toyota is recalling nearly 19,000 cars in the UK due to potential problems with their fuel systems, it has been announced. The company said hundreds of Toyota Avensis and Lexus IS 250 models could be at risk of fuel leaks and will need to be modified by mechanics. According to Toyota, there have been no accidents suspected of being related to the defects, but it is the latest in a series of quality control woes for the Japanese carmaker. Officials said they are writing to the owners of the affected vehicles to arrange repairs. A statement released by the company said: "As a result of customer feedback in other markets worldwide, Toyota GB today announced it would recall a number of its Toyota Avensis and Lexus IS 250 models in the UK to carry out modifications to their fuel systems. "It is working with the Vehicle and Operator Services Agency (Vosa) to contact registered owners and keepers by letter to advise them of the procedure for taking their vehicle to an authorised Toyota or Lexus repairer for the necessary repair work to be done." Around 15,500 British owners of Toyota Avensis 2.0-litre and 2.4-litre petrol engine models, produced between July 2000 and September 2008, are eligible for the free repair, which could take up to four-and-a-half hours. Approximately 3,100 UK registered Lexus IS 250 petrol engine vehicles, produced between August 2007 and February 2009, are also affected. Jon Williams, Managing Director of Toyota GB PLC, said: "We are committed to putting the customer first and have a total focus on the quality of all our products. We will liaise with our customers to carry out the repair procedures as efficiently as possible, with minimal disruption." Nearly 1.7 million Toyota-made vehicles are being recalled worldwide because of the defects.

BBC set to cut World Service jobs

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Image The BBC is expected to announce hundreds of job losses at its World Service. It is thought about 650 jobs will be cut from a workforce of some 2,400 in a bid to save £46 million a year. Union leaders said the "ferocious cuts" would damage British influence abroad and were a "direct result of the Government slashing funding to an internationally respected and successful broadcaster". On Tuesday night the BBC confirmed the World Service is to close five of its language services. The Corporation said in a statement: "BBC World Service has announced that it will be closing five language services - Albanian, Macedonian, Portuguese for Africa and Serbian; as well as the English for the Caribbean regional service. "This is part of its response to a cut to its Grant-in-Aid funding from the UK's Foreign and Commonwealth Office. The cut is part of a BBC World Service restructure in order to meet a 16% savings target announced in the Government's spending review of October 20th last year." BBC Global News Director Peter Horrocks said: "These closures are not a reflection on the performance of individual services or programmes. They are all extremely important to their audiences and to the BBC. It is simply that there is a need to make savings due to the scale of the cuts to the BBC World Service's Grant-in-Aid funding from the UK's Foreign and Commonwealth Office and we need to focus our efforts in the languages where there is the greatest need and where we have the strongest impact." The BBC said it would not confirm details of job losses before briefing staff. However, BBC director general Mark Thompson said the cuts would be painful and have a "deep" impact on jobs, and writing in the Daily Telegraph he said: "We will do our best to minimise the consequences, but they will inevitably have a significant impact on the audiences who use and rely upon the relevant services, as well as on those of our colleagues who work on them." Mr Thompson said the cuts were enforced as a result of the Comprehensive Spending Review, and had nothing to do with the BBC licence fee settlement reached with the government last year.

King warns of 'choppy' recovery

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Image Bank of England boss Mervyn King warned that grim GDP figures serve as a stark reminder that Britain's recovery will be "choppy" as he braced consumers for a bleak year ahead. In a speech at Newcastle's Civic Centre on Tuesday night, the Bank Governor said Britons should expect inflation to rise to between 4% and 5% over the next few months. It concluded a gloomy day in which it was also revealed that the UK economy unexpectedly shrank in the fourth quarter A shock 0.5% plunge in gross domestic product (GDP) between October and December was blamed on severe weather last month which triggered a drop in demand for the key services sector, which makes up more than 75% of the economy. Analysts warned the surprise decline - the first since the third quarter of 2009 - seriously damaged prospects for the economy as it takes the strain of the Government's sharp austerity measures. It also raises the prospect of stagflation - a period of high inflation coinciding with a stagnating economy. On Tuesday night, Mr King warned that real wages will plunge back to 2005 levels as prices soar and the Government's deficit-busting actions take effect. And while the economy was "well placed to return to sustained, balanced growth", Mr King outlined strong headwinds facing the economy in 2011. Rising unemployment and declines in real earnings will hit spending in the private sector, with the public sector hammered by Government spending cuts. But it was inflation that was the Governor's biggest immediate headache. He told the accountants' business dinner that the latest GDP figures "remind us that, as I said last year, the recovery will be choppy. Of more immediate concern to the Monetary Policy Committee is that we are experiencing a period of uncomfortably high inflation." He added: "With the standard rate of VAT rising to 20% this month, and recent further increases in world commodity and energy prices, inflation is likely to rise to somewhere between 4% and 5% over the next few months, before falling back next year." His move to increase Bank inflation expectations yet again will heap further pressure on the MPC. There have been calls for action after inflation rose to 3.7% in December, far higher than the Bank's 2% target.

Obama takes centre ground in speech

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Image President Barack Obama has called for unity with newly empowered Republicans in a State of the Union policy speech that laid the foundation for the second half of his presidential term and next year's fight for re-election. Mr Obama staked out territory in America's political centre. He defended programmes dear to his Democratic base, including the federal Social Security pension programme and his health care overhaul. But he also backed some top priorities of Republicans, who took control of the House of Representatives this month. He called for cutting the corporate tax rate, freezing some federal spending, shaking up the federal bureaucracy and eliminating politicians' pet projects. He made a direct appeal for bipartisanship, saying: "We will move forward together or not at all." The nationally televised address before both chambers of Congress is always one of America's most closely watched political events, but this year's speech had extra drama. For the first time in his two-year presidency, Mr Obama was appearing before a divided Congress. After November elections that Mr Obama has described as a "shellacking", Republicans narrowed the Democratic advantage in the Senate as well as taking control of the House of Representatives. Mr Obama said the American people are counting on their leaders to create jobs in the United States. "At stake right now is not who wins the next election," Mr Obama said. "After all, we just had an election." Mr Obama focused on federal spending for education, innovation and infrastructure as ways the government can support America's foundation and help businesses create jobs for a generation. He paired that with a call to reduce the federal debt and to make the government leaner.

Miliband brothers in community bid

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Image Labour leader Ed Miliband is to join forces with brother David to create a 10,000-strong army of community organisers. The relaunch of the Movement for Change marks the first formal collaboration between the brothers since Ed beat David to the party leadership last September. While Ed has made clear on several occasions that he would like his elder brother to join his shadow cabinet, David has stayed away from the political frontline, opting instead to take up posts as non-executive director of Sunderland football club and part-time teacher in a north London school. Now the brothers will seek to dispel speculation of a family rift by reviving the Movement for Change, created by David during his leadership campaign. They aim to increase tenfold the 1,000 activists recruited and trained last year to help organise drives to improve life in their communities. They hope its support for campaigns to protect health facilities, schools, public sector housing and services will act as a Labour counterpoint to the Government's "Big Society". The next stage in the Movement, expected to be launched in March, will be funded by a £250,000 gift from Lord Sainsbury of Turville, who bankrolled Labour with donations totalling £13 million under the leadership of Tony Blair and Gordon Brown. The donation will be made direct to the Movement for Change, rather than the Labour Party. A spokesman for the Labour leader told The Guardian: "Ed thinks David has done a brilliant job with Movement for Change. It will play a key part in revitalising the Labour party and reconnecting it with parts of the electorate who feel we lost touch. He is delighted that David will be involved in Movement for Change, which underlines how he will remain an important voice in Labour politics." And David Miliband said: "There are few things more important than that the Labour party rebuilds strong relationships with the people of Britain. Movement for Change is designed to take the best of the rich traditions of community organising from Britain and abroad, and apply them to the present day. It will, I hope, help communities across Britain defend themselves and help Labour on the road to government."

Gray takes legal advice on sacking

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Image Soccer pundit Andy Gray is consulting lawyers after he was fired in the football sexism row. The Sky Sports presenter, already in trouble over sexist remarks about assistant referee Sian Massey, was sacked "in response to new evidence of unacceptable and offensive behaviour" following an "off-air incident that took place in December 2010", the broadcaster said. The future of fellow Sky Sports presenter Richard Keys - who was issued with a warning for his involvement in the furore - was also unclear, after new footage emerged of him appearing to speak in lewd terms about a former girlfriend of pundit Jamie Redknapp. Meanwhile, reporter Andy Burton is having to sit out Wednesday's Carling Cup semi-final second leg between Birmingham and West Ham after also being disciplined for comments about Ms Massey. The official withdrew from running the line at Tuesday night's npower League Two match between Crewe and Bradford as the row continued. Sky Sports said in a statement that it had terminated its contract with Gray. It said the decision, effective immediately, was in response to new evidence of unacceptable and offensive behaviour. "The new evidence, relating to an off-air incident that took place in December 2010, came to light after Andy Gray had already been subjected to disciplinary action for his comments of 22 January 2011." New footage was shown on Sky News of Gray asking a female colleague to help him tuck his microphone into his trousers. The former Everton striker, who reportedly earned £1.7 million a year, is shown asking Charlotte Jackson: "Charlotte, can you tuck this down here for me?" She ignores the remark. Gray and Keys were dropped from Monday night's match between Bolton and Chelsea after their off-air remarks were leaked. The pair agreed that female officials "don't know the offside rule" and predicted Massey would drop a clanger during Wolves' home game against Liverpool on Saturday. She ended up correctly calling a crucial borderline decision.
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