Microsoft Boss To Leave Amid 'New Direction'

Microsoft Revamp Amid PC Decline

Updated: 3:28pm UK, Friday 23 August 2013

By Thomas Moore, Sky News Science Correspondent

Microsoft has struggled as the PC market has declined.

Five years ago more than 90% of computers ran a version of the Windows operating system, according to tech analysts Forrester.

By 2012 - with Apple and Google dominating mobile computing - it was found on just 30% of devices.

In an effort to revamp its image for the touchscreen era, the company launched Windows 8 late last year.

But the lack of the iconic 'start' button and the new interface of tiled apps irritated users tied to a keyboard and mouse.

It's now done a U-turn and a soon-to-be-launched update - Windows 8.1 - will restore the start button.

Microsoft will hope the tweaks will breathe life into the operating system.

It has failed to convince PC users to upgrade so far, despite a marketing budget that's estimated to top $1bn  (£600m).

Eight months old and Windows 8 is still only found on 5.4% of computers, according to data from Net Applications.

Windows 7 still dominates, with a share of 44.5%.

The malaise is affecting PC makers.

HP recently reported that sales of desktop and notebook computers had slumped by 8% in a year.

So the stakes are high for Microsoft and the industry that relies on its software.

If the new-look Windows fails to stop the slide in sales many will ask whether the PC has a future.

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Wind Farm Report Into House Price Blight

An official Government report into renewable energy will reveal for the first time how wind farms affect rural house prices.

Consultants have been brought in by Environment Secretary Owen Paterson to look at whether renewable technologies drive down property values.

The work is part of a wider cross-government study looking at the effect of renewables on the countryside and rural economy.

Its findings will fuel a coalition rift over onshore wind turbines, with Tory MPs already predicting it will reveal "billions of pounds of planning blight".

Energy Secretary Ed Davey has rejected claims his officials are blocking the study amid anger that Mr Paterson is encroaching on his remit.

"My department is not blocking a Defra report on the impact of wind farms," he wrote in a letter to the Telegraph.

"The Government is committed to moving to a secure, affordable, low carbon energy system, without excessively relying on any single technology.

Ed Davey downplayed any coalition rift

"So, this cross-government study will look at maximising the benefits and minimising the negative impacts of all technologies, including shale gas and nuclear."

The Government stressed the report was a joint project between the Department of Energy and Climate Change (DECC) and Department for Environment, Food and Rural Affairs (Defra).

A spokesman said: "We need to ensure that energy is generated in a way that is sustainable and understand the effects that different technologies have on the environment and on communities across the country.

"DECC and Defra are working together on this report, which is not yet complete, to ensure that it meets the usual standards and quality assurances that you would expect from any Government publication.

"A diverse energy mix is the best way to meet our energy security requirements, our climate change commitments and keep energy bills affordable."

A Defra spokesman added: "It is our role to rural-proof policy. We need to ensure that energy is generated in a way that is sustainable.

"Sustainability includes the economic as well as social and environmental impacts."

Tory MP for Daventry Chris Heaton-Harris claimed one of his constituents had seen their home's value plunge from £700,000 to £250,000 because of wind turbine plans.

But Jennifer Webber, from RenewableUK, told the Telegraph: "All the expert academic research published in this country and abroad over the last few years shows there's no conclusive evidence to suggest that wind farms affect house prices."

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Seaside Towns Given More Government Cash

More cash is being offered to coastal towns as part of a Government bid to boost deprived areas.

The Coastal Communities Fund is being expanded to £29m next year and will now last another 12 months to 2016.

The fund, created by the coalition in 2012, is used to invest in seaside towns and villages and is expanding due to rising marine revenue.

It is paid for by channelling money equivalent to 50% of the profits from the Crown Estate's marine activities.

Previous projects to have benefited include the harbour on the Island of Barra in the Western Isles and the North York Moors railway.

Making Wadebridge in Cornwall the first solar-powered town in Britain was also among the 51 bids to receive money in the first year.

The Treasury believes the cash already approved should deliver 5,000 jobs and 500 apprenticeships.

Chief Secretary to the Treasury Danny Alexander said: "The Coastal Communities Fund is giving our seaside towns and villages a real chance to grow as the nation benefits from our marine resources."

Communities Secretary Eric Pickles added: "This Government is committed to supporting our seaside towns and we know the Coastal Communities Fund is really making a difference."

The funding for 2014/15 financial year is split between each of the UK countries.

England receives £22.15m, Scotland's Highlands and Islands £2.85m, the rest of Scotland £1.95m, Wales £1.55m and Northern Ireland £0.6m.

Expansion of the fund comes after the Centre for Social Justice (CSJ) warned some seaside towns were becoming "dumping grounds for poverty and social breakdown".

Its study revealed seven of the 20 areas in the UK with the highest level of working-age people on out-of-work benefits were on the coast.

On key poverty measures such as teenage pregnancy and school failure, it found some resorts now suffer from problems as severe as deprived inner-city areas.

CSJ director Christian Guy said: "Investment in our seaside towns is welcome, but this should be only the start.

"We need to boost skills, attract businesses, provide decent housing and encourage family stability.

"This would breathe new life into these towns - not just for visitors, but the people that live there."

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UK GDP Revised Upward In Second Quarter

UK GDP output for the second quarter of 2013 has been revised upwards, according to officially released figures.

The Office for National Statistics (ONS) said the economy grew by 0.7% in the three months.

The ONS gross domestic product (GDP) figure was up 0.1% from the estimate released in July.

Rosier growth was seen across all sectors of the economy, with small upward revisions across manufacturing, construction and parts of services.

In late afternoon trading the FTSE 100 was up around 0.75%.

Second-quarter growth more than doubled from 0.3% expansion in the first three months, raising hopes that the economy is now powering out of its five-year slump.

The Treasury said the upward revision confirmed the UK is "moving from rescue to recovery".

Construction was one of the hardest hit sectors in the global crisis

A spokeswoman said: "There is still a long way to go, but the economy is on the right track and the Government is committed to its economic plan that has already cut the deficit by a third and enabled the private sector to create over 1.3 million new jobs."

Output from the UK's building sites expanded by 1.4% in the second quarter from an initial 0.9% estimate as the housing market was ignited by state stimulus schemes, including Help to Buy and Funding for Lending.

There were also brighter signs from factories, which grew output by 0.7% during the quarter, up from an initial 0.4% estimate.

And output from distribution, hotels and catering firms, was revised up to 1.7% from 1.5%, while growth across business services and finance firms was also revised higher to 0.6% from 0.5%.

The overall services sector expanded by an unchanged 0.6%, but output from the agriculture sector was revised up to 1.7% from the 1.1% first estimate.

Britain's shrinking net trade deficit, which dropped to £3.2bn in the second quarter from a £4.3bn deficit in the first quarter, also contributed to the increase in output as exports leapt to a record level.

James Knightley, economist at ING Bank, said the higher estimate of GDP will "boost optimism on the economy".

Markit chief economist Chris Williamson added it was a "very encouraging picture of a broad-based upturn across almost all sectors of the economy".

But Chris Leslie MP, Labour's shadow financial secretary to the Treasury, said: "These figures confirm that after three wasted years of flatlining we finally have some welcome but long overdue growth.

Agricultural output was revised upward by more than half

"But for all George Osborne's complacent claims that the economy is now fixed, for ordinary people things are getting harder. While millionaires have been given a huge tax cut most people are still seeing prices rising much faster than wages.

"And real risks remain. The Governor of the Bank of England is right to warn that the recovery is weak, and it is the slowest on record."

Pay and pension contributions increased by 2.4% in the second quarter - the highest quarterly increase since late 2000 - with the pay spike boosted by unusually high bonus payments in April.

The ONS said spending across various parts of the economy contributed to growing output.

Spending by households increased 0.4% in the quarter, raising hopes that higher consumer spending will drive the recovery, and is now 1.6% higher than a year earlier.

The ONS said overall economic output is now 3.2% below its peak in the first quarter of 2008 - it dropped as low as 7.2% below the peak in the second quarter of 2009.

The first estimate published in late July was based on 44% of data, while Friday's estimate is based on 88% of data.

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Pump Sales Slump Amid Summer Price Hike

A surge in pump prices led to last month's petrol and diesel sales crashing to winter levels, according to a motoring group's analysis of Government figures.

The AA said drivers bought nearly 1.48 billion litres of petrol in July 2013 - an 8% fall on the June 2013 figure.

This was only 45 million litres more than the record low in February this year and just 11 million litres more than the January 2013 total.

July 2013 sales of diesel were down 5% on June's, dropping  to just over 2.21 billion litres. These figures include commercial usage.

The AA added that in June 2013, when the average cost of petrol levelled at 134.6p a litre after surging to 140.0p in the spring, stable lower prices lifted petrol sales to a level last seen in November 2011.

But last month, a sudden 5p-a-litre rise in wholesale costs raised the average pump price from a low of 133.7p on the last day of June to 135.8p by the middle of July and 137.2p by the end of the month.

It finally started to level off at 137.6p in the first week of August.

Tax income from duty on petrol and diesel sales fell £142m in July compared to June and £35m compared to July 2012, the AA said.

Its president Edmund King added: "It's staggering that when brilliant weather sent consumers into the shops and gave the UK's retail sector a strong boost, the complete opposite happened at the pumps.

Motorists have complained of rising fuel prices this year

"Not only are petrol sales shadowing the record lows of this winter, but are lower than last July which included a week of Olympics football, opening ceremony and initial events."

He went on: "It seems that, as each penny increase registers on fuel forecourt price boards, drivers automatically cut back - even if they're in the mood to spend elsewhere."

Meanwhile, a survey of more than 13,500 motorists by What Car? has ranked car dealerships by the service they give owners.

Jaguar, Lexus and Honda topped the list while Fiat, Alfa Romeo and Chevrolet were at the bottom.

Popular makes such as BMW and Audi were in the middle of the 27 marques ranked.

Whatcar.com editor Nigel Donnelly told Sky News: "People have a perception that main dealer pricing can be on the steep side but what we are finding is that dealers now appreciate that retaining that next sale is making sure people have a good experience.

"If you use independent dealers you really want to be make sure they are using quality parts, correct oils and a proper breakdown of what has been done to the car.

"For most people, if it looks like the garage can't look after itself it probably can't look after your car."

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Nasdaq Trading Halted Due To Computer Glitch

By Sky News US Team, in New York

The latest high-tech disruption in the financial markets has increased pressure on Nasdaq and other electronic exchanges to take steps to avoid future breakdowns.

A three-hour trading outage on the Nasdaq stock exchange on Thursday is expected to trigger new rounds of regulatory scrutiny on computer-driven trading, as investors' shaky confidence in the markets takes another hit.

Trading in the Nasdaq, a major stock exchange dominated by the biggest names in technology, suffered the outage after a "technical glitch".

The disruption sent brokers scurrying to figure out what went wrong and raised new questions about the pitfalls of computer-driven stock trading.

Other US exchanges continued trading normally.

Nasdaq CEO Robert Greifeld said that unspecified, external factors caused the glitch, and that the exchange followed all the proper procedures to correct the problem.

Facebook's float on the Nasdaq was hit by glitches

"We all have to be aware of the other person not acting always in the proper way, and you have to have your system be able to handle defensive driving," Mr Greifeld said.

"We're deeply disappointed with what happened yesterday. We aspire to perfection. We want to get to 100% up time."

The Nasdaq freeze echoed earlier stock market problems, such as the sudden plunge in stocks in May 2010 that came to be known as the "flash crash" and the glitch-plagued initial public offering of Facebook last year.

The exchange sent out an alert to traders saying that trading was being halted until further notice because of problems with a quote dissemination system.

Nasdaq said it would not cancel any open orders on Thursday, but that customers could cancel orders if they wanted to.

Securities and Exchange Commission spokesman John Nester said: "We are monitoring the situation and are in close contact with the exchanges."

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Bank Holiday Discounts: Warning From Watchdog

The consumer watchdog has urged shoppers to quiz carpet and furniture retailers before they buy this long weekend - after it found some used artificially high prices to exaggerate sales and price cuts.

The Office of Fair Trading (OFT) is investigating six chains after discovering many retailers in the sector were misleading customers into thinking they were getting a bargain by artificially inflating the original price.

It found "systematic" examples of artificially inflated reference pricing within the industry, through the use of "was" prices formerly charged by the retailer, "after sale" prices that the trader intended to charge in the future, or recommended retail prices (RRPs) set by the manufacturer.

During monitoring of the six companies, the overall average of sales of items at the reference price was just 5%.

OFT director Gaucho Rasmussen said: "This bank holiday sale season we would recommend that consumers ask sales staff when and for how long the reference price was used and also how many sales they achieved at this price."

The OFT said there were a significant number of products sold by some retailers where no sales at all took place at the artificially inflated price.

In all cases, no explanation of how and when these higher prices were established were provided.

The consumer watchdog has written to the six retailers asking them to stop using the pricing practices that mislead consumers, giving them until autumn to respond.

The OFT did not name the companies in the hope of reaching a quick resolution, however Carpetright has since confirmed it has been contacted as part of the investigation.

It said: "Carpetright strives to operate fully within all laws and regulations at all times. Carpetright is co-operating fully with the OFT and will respond to the letter in due course."

"There is no suggestion in the letter of Carpetright having behaved in a manner which breaches competition law."

Approached by Sky News, retailer DFS declined to comment.

Furniture Village said: 'We are aware of ... the ongoing investigations being undertaken, and it would be inappropriate for us to comment until such time as its findings are published.

"Furniture Village is fully supportive of any initiative which ensures that, industry-wide, future pricing policies and practices are fair and accurate."

Mr Rasmussen said: "OFT research has found that reference pricing can mislead consumers into thinking the item they have bought is of higher value and quality.

"(With) pressure them to buy there and then so they don't 'miss out' on the deal and also impair their judgment, as buying an item immediately means they do not get the chance to search the market for the real best deals.

"This will help them to determine whether they are getting a good deal."

Richard Lloyd, executive director of Which?, the consumer campaigning charity, added: "The OFT's warning sends a clear message to carpet and furniture stores that special offers really have to be special.

"It's unacceptable that shoppers are misled into thinking they're getting a good deal when that might not be the case."

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Countryside Fears Over Solar Energy Growth

By Emma Birchley, East of England Correspondent

Rural campaigners say the push to generate green energy through giant solar farms is having an unacceptable impact on Britain's rural landscape.

Developments like Burntstalks Solar Farm in Norfolk, which has nearly 50,000 photovoltaic panels and captures enough of the sun's rays to power nearly 4,000 homes, are heralded as a sensible solution to the UK's energy needs.

However, some claim the sites are yet another blot on the landscape and are ruining the countryside.

David Hook, from the Campaign to Protect Rural England, told Sky News: "I think that if policy is not changed ... the industrialisation through solar farms and extra wind turbines is going to have a dramatic effect on the countryside, and a very negative effect."

It is only two years since the UK's first large scale sun park began generating electricity in Lincolnshire.

There are now nearly 160, mostly in rural areas, with a further 229 under construction or awaiting approval.

David Hook wants policy to change

Lightsource Renewable Energy owns and operates dozens of solar farms, including Burntstalks, near King's Lynn.

Mark Turner, the company's operations director, said: "The balance we have to strike is between a solar farm that can generally only be seen by people very close up to it and usually by fleeting glimpses through hedgerows as you are driving along, versus potential wind farms or the other alternatives of non-renewables including nuclear power stations and coal-fired power stations.

"The amount of ground taken up by the farm is minimal and what we then try to do, as far as possible, is to use the land for dual use.

"We graze sheep or plant wild flowers, so the land is used for the kind of purpose it would be used for before the panels were here."

The Government has made it clear it backs the production of solar energy, which it hopes will eventually produce 20GW of energy every year - eight times more than at present and enough to power around six million homes.

Its priority is for panels to be put on brownfield sites and the roofs of factories, hospitals and houses but according to Mr Turner, that is not always possible.

"Finding roof tops that are owned by companies we can rely on to be there in the 25 years we need to return the investment is extremely difficult," he said.

"And finding brownfield sites that are sufficiently far enough south to generate enough electricity, are close enough to the grid and aren't dedicated to other purposes, is extremely difficult."

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HS2 Project Attacked By Alistair Darling

Former chancellor Alistair Darling has withdrawn his support for the HS2 train line, calling it "foolish" and warning of spiralling costs.

Mr Darling said the cost of the project, which is already officially around £43bn after soaring by £10bn earlier this year, could "easily run out of control".

The senior Labour MP, also a former transport secretary, questioned the entire purpose of the line, which the coalition argues will boost economic growth and narrow the North-South divide.

Its economic benefits are "highly contentious", he claimed, as he expressed fears it will drain money from other vital transport projects.

Mr Darling's U-turn, after he backed the early stages of the project when he was Chancellor, will fuel coalition fears Labour could be about to pull its support.

Alistair Darling: The facts have changed

Writing in The Times, he said: "To commit ourselves to spending so much on a project that rules out any other major schemes seems foolish. And the costs are not yet nailed down.

"The facts have changed. The case for HS2 was just about stateable in 2010. I don't believe it is today."

Construction on the first phase of HS2, the route from London to Birmingham, is due to start in 2017 with the first trains aiming to run by around 2026.

The second phase will see two spurs added - one through Manchester and the other through Leeds.

A report by the Institute for Economic Affairs this week put its eventual cost at £80bn, almost double the official estimate and the Treasury is reported to be working on a figure of £73bn.

Mr Darling pointed out that capital projects across the Department of Transport (DfT) usually cost around £9bn a year.

He insisted: "It is time to revisit the case for HS2. It runs the risk of substantially draining the railway of money vital for investment over the next 30 years.

"My experience in government also makes me suspicious of big projects that can easily run out of control. Politicians are always excited by 'visionary' schemes.

"One thing I have learnt is that transport, rather like banking, is at its best when it is boring. That is when it tends to work. Political visions can easily become nightmares."

Bacombe Lane in the Chilterns where a viaduct will be built for HS2

He agreed there is a need for more capacity on trains from London to the North but also warned of existing "severe" problems on commuter lines, particularly in the South East.

It was wrong to assume passengers travelling by train are not productive, saying often more work was done on the move than in the office, he added.

And he condemned the move to link the network to Euston station in London, instead of St Pancras which connects with the Eurostar or Paddington where there is a link to Heathrow.

"The next Government and the one after that will be very short of money to spend on the infrastructure that we desperately need," he said.

"To commit ourselves to spending so much on a project that rules out any other major schemes seems foolish. And the costs are not yet nailed down."

Transport Secretary Patrick McLoughlin later denied cross-party support for the project was weakening.

"The Labour Party are very much in support of HS2 and certainly when I met the core city leaders where HS2 will serve, all of them Labour Party members, they are very much in support," he insisted.

"This scheme is very important to the infrastructure of this country and all big infrastructure projects are all controversial. No doubt Alistair Darling knew that when he signed it off as chancellor of the Exchequer.

"The Chancellor and the Prime Minister have been totally in support of this project and there is no problem with support that I'm receiving from other colleagues in Government."

Campaigners claim constructing the line will affect more than half a million people across England and ultimately blight some of the country's most tranquil areas.

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Post Office Staff In Fresh Wave Of Strikes

Workers at Crown post offices are staging a fresh wave of strikes in a five-month row over jobs, pay and closures.

A UK-wide stoppage is being held today, staff in Scotland will strike on Monday, and union members in England, Wales and Northern Ireland will stop work on Tuesday.

The Communication Workers Union said the dispute involves up to 4,000 staff and shows no sign of being resolved.

The industrial action is linked to plans to franchise or close more than 70 Crown sites - the larger branches usually found on high streets.

The 373 Crown offices, which are usually the larger ones, represent just 3% of the total post office network.

But the CWU says its staff deal with a fifth of all customers and handle 40% of financial transactions involving things like banking and credit cards.

Dave Ward, CWU deputy general secretary, said: "This is the first time we have announced two days of strikes at the same time and the first time we have announced back-to-back days of strike action.

"Coupled with the 90% yes vote by members for industrial action short of strike, the message can't be much stronger to Post Office management.

"Crown post office workers do not agree with management's slash-and-burn approach and are prepared to take prolonged industrial action to defend jobs and services and win a fair pay rise.

"This is a company which made £94m profit last year and paid out £15.4m in bonuses to senior managers.

"It's a clear case of double standards and trampling those at the bottom for the benefit of those at the top. Enough is enough. It's time to resolve this."

Kevin Gilliland, network and sales director at the Post Office, said he was "extremely disappointed" at the CWU's decision to call further strike action.

"This action can only cause disruption to customers, cost our people money and place further pressure on the Crown network which is currently losing £37m a year.

"We must continue with our plans to turn around the Crown network to ensure we keep these branches on high streets and in city centres across the UK.

"We remain open to discussions with the CWU on pay options which do not add to the current loss of public money."

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