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Vinyl Albums A Hit Again With Record Sales

Written By Unknown on Minggu, 19 Oktober 2014 | 00.02

Vinyl album sales are flourishing as figures show they could pass the million mark by the end of the year - the best return for almost 20 years.

The Official Charts Company figures show almost 800,000 vinyl albums have been sold in the first nine months of this year - already beating last year's total of 780,674.

The last time vinyl topped a million sales was in 1996 when they shifted 1,083,206 albums.

A spokesman for music industry body the BPI said: "Vinyl may once have been considered a by-product of a bygone era but it is now well and truly a flourishing format making a come-back in a digital age.

"In an increasingly-digitised world, it appears that music fans still crave a tangible product that gives them original artwork, high audio quality, and purity of sound.

Video: Sixteen Year Olds 'Love Vinyl'

"Vinyl enthusiasts are now able to enjoy the renaissance of the format with a string of releases being made available on the format from emerging and established acts."

September was the busiest month of the year so far with 112,000 vinyl albums sold.

And last year's biggest seller - AM by Arctic Monkeys - is continuing to top the charts for 2014, ahead of Jack White's Lazaretto.

Vinyl albums hit an all-time low in 2007 with only 205,000 copies.

In 2008 the vinyl revival began and the tally has continued to nudge upwards.

So far this year, 112 releases have sold in excess of 1,000 copies, more than double the 50 which had done so in the first nine months of last year.

Only one of the top 10 vinyl albums for this year was actually released for the first time in 2014 - the self-titled debut album by Royal Blood.


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Fancy A Pair Of Jimmy Choos For £2.80?

The luxury shoe brand Jimmy Choo has launched its London listing with shares at the bottom of its price range at 140p each.

The flotation, which offered investors a 25.9% stake, went ahead despite a nervous market for Initial Public Offerings (IPOs) given current market turmoil over the world economy and doubts about the luxury market in particular.

The listing price of 140p reflected those conditions, as the price range was set at 140p-180p only last month.

The shares rose by 0.5p on debut in early trading, giving the firm an equity value of £547.5m.

The proceeds from the sale, £141m, are to be used by Jimmy Choo's owner to help fund its growth strategy including a new store concept and "expansion into Asia and selected new markets".

Jimmy Choo was bought by JAB Luxury in 2011 - 15 years after its first London store was opened by co-founders Tamara Mellon and designer Jimmy Choo.

The brand - made famous by the character Carrie Bradshaw in TV's Sex And The City - grew to become a "must have" in the luxury market - with annual sales growth running at more than 10%.

It now operates from 120 own-stores worldwide.

Jimmy Choo left the company in 2001 and Tamara Mellon in 2011. Choo's niece, Sandra Choi, is now the company's creative director.

It was expected to be one of a number of high profile names joining the stock market late this year but challenger bank Aldermore recently confirmed it was cancelling its planned IPO.

Virgin Money confirmed later on Friday that it was delaying its flotation until such a time the market volatility eased. 


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Free Waterstones One: Tourist Trapped In Store

An American tourist has said "it feels good to be free" after spending two hours trapped inside a London bookshop when staff closed up failing to realise he was still inside.

David Willis had been using the internet inside the Waterstones in Trafalgar Square when he discovered he had been shut inside - it was only after posting messages on Twitter that he was finally released.

Mr Willis, from Texas, said he went to leave the store through the doors on the lower level and found all the lights had been turned out, the door was locked and the shutters had been drawn down.

His attempts to open the door set off the alarm and he spoke to a security guard who rang the store, which closes at 9pm, thinking he would be freed.

However, when nothing happened he posted a picture of himself behind shutters with the message: "This is me locked inside a Waterstones bookstore in London.

"I was upstairs for 15 minutes and came down to all the lights out and door locked. Been here over an hour now. Supposedly someone is on their way."

He said he then spoke to the police but still he was not rescued so finally he tweeted: "Hi Waterstones, I've been locked inside of your Trafalgar Square bookstore for two hours now. Please let me out."

It was retweeted by thousands of people, the police arrived at the shop and he was finally freed just after 11pm on Thursday.

By the time he was rescued Twitter had already hashtagged him the Waterstones One.

He tweeted to followers: "I'm free."

Speaking to ITV's Good Morning Britain, Mr Willis said: "I'm very tired, I did not sleep much last night but it feels good to be free."

A Scotland Yard spokesman said police were called at around 9.35pm "by a man claiming to be locked inside a shop".

He added: "Officers attended and following the arrival of a key holder the man left the building shortly after 11pm."

Waterstones posted a message on its Twitter feed saying: "We're pleased to announce that [Mr Willis] is a free man once more. Thanks for your concern and tweets."

By Friday morning the store was asking for reading recommendations for anyone stuck in a bookshop for two hours.


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Apple Unveils New iPads And Launches Apple Pay

Apple has launched two new iPads - featuring Touch ID fingerprint sensors and a camera 'burst mode'.

The iPad Air 2 and iPad Mini 3 were unveiled by Apple hours after their details were apparently leaked by mistake on the technology giant's website.

But many online commentators speculated that the leak was deliberate, and designed to overshadow the launch of Google's new operating system called Lollipop.

The new features are relatively minor, however.

Touch ID has been a feature of new iPhones for more than a year, while burst mode - letting a user take multiple shots within a split second of each other on the Air model - is not a huge breakthrough.

Video: Sept: Complaints Of Bendy iPhone 6

The iPad Mini will also get an iSight camera - the front-facing camera used for selfies and FaceTime calls.

But Ernest Doku, from uSwitch.com, was underwhelmed, saying: "One problem Apple faces is that, without a finite network contract to concentrate their minds, tablet owners need more persuading to upgrade than phone users.

"Launching new tablets every year with minor improvements won't do it. Only giant leaps forward will provide the wow factor needed to drive new sales in an increasingly saturated market."

Extra features complement the boosted processor power and better camera optics which come with each new iDevice iteration.

Video: Sept: Hundreds Queue For New iPhone

The iPad Air range is Apple's main tablet and starts at $499 (£312) - while the iPad Mini has a reduced size and costs $399 (£249).

Pre-orders for the two new devices will begin on Friday.

The company also announced that its mobile payment service, Apple Pay, will begin rolling out on Monday - but only in the US.

Another 500 banks have apparently signed up to support a feature that competes with PayPal and other online systems.

Video: Sept: Supersize iPhone 6 And Watch

Meanwhile, Apple confirmed that its desktop computer, the Mac, is also receiving an update to mark its 30th birthday.

The new iMac will have a Retina 5K display - which at 14.7 million pixels makes it the company's version of HD.

"This is the strongest product line-up we've ever had," said CEO Tim Cook.


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Global Markets Q&A: What Is Causing The Fall?

Volatile trading has continued into a second day after weak growth reports sparked a big sell-off earlier this week. But what has caused the markets to get jittery?

:: Why are markets plunging?

Good question. As ever with global markets, there's no straightforward answer, but here are three likely factors: first, the economy in the eurozone is doing worse than many expected, so you would expect share prices, which have raced away in recent months, to come down.

Second, with the eurozone facing a possible recession, threatening to drag the rest of the world into a slump, and with China and other emerging economies weaker, it's not clear who will play the role of global economic powerhouse in the coming year.

Third, there are some who fear that the share price gains of the past few years are simply a temporary sugar high fuelled by central banks pumping cash into the system.

Video: Market Sell-Off: What Is To Blame?

:: But the UK is outperforming the G20, isn't it? So are we immune?

As a small, open, highly-financialised economy, Britain is highly sensitive to changes in the international economy – and nowhere more so than the euro area.

Just over 50% of UK goods exports go to the EU, compared with just over 13% to the US and just over 4% to China.

Indeed, economists think if there is a recession in the euro area that could cause annual UK GDP growth, currently more than 3% a year, to drop into negative territory.

:: To what extent has the ebola outbreak contributed to growth and investor concerns?

It has certainly added to the sense of unease, alongside the rise of Islamic State, the growth of extremist political parties in the EU and the prospect of a UK referendum on EU membership.

It is difficult to pinpoint precisely how much influence each factor has on confidence.

:: A core concern worldwide is low inflation. Surely weaker price increases is a good thing for me?

Well strictly speaking higher inflation tends to be good for debtors and bad for savers.

But the worry here is less about investors and more about what low inflation is telling us about the growth prospects of the eurozone.

Twelve of the 28 EU member states have zero inflation or deflation (falling prices), and falling prices (and wages) are usually a sign of an economy which is facing a pay cut and struggling to generate growth.

:: The eurozone looks to be heading towards recession again. Who is to blame?

For the time being, this is a different crisis to the existential crisis we saw a couple of years ago (where it looked like the single currency was about to break apart).

But now the eurozone's long-standing weaknesses (poor demographics, high public spending, unreformed labour markets) are coming back to haunt it.

Video: Market Jitters: US Growth 'To Win'

Those kinds of problems - as rife in France and Italy as other smaller, Mediterranean economies - will take years to resolve, and there is little sign politicians are getting any closer to doing so (certainly in France).

:: Germany is Europe's biggest economy. Why is it now suddenly facing a downturn?

Partly because its neighbours aren't doing all that well. Partly because it has been more affected than most by sanctions on Russia. Partly it has been affected by the relative strength of the euro in the past few years.

But there are also complaints that its government hasn't done enough to get growth going.

The International Monetary Fund, among others, believes it should be spending more on infrastructure to help kick-start economic activity.

:: Greece was the first euro nation to get a bailout during the debt crisis. Why is it still struggling when other nations such as Ireland have recovered?

Actually in some senses it is doing a lot better than expected.

Next year, according to the IMF, Greece will grow faster than any other eurozone economy apart from Ireland.

However, for one thing, unemployment remains eye-wateringly high. Second, and most worrying as far as markets are concerned, the coalition government looks weak, and could conceivably collapse in the coming months.

That brings its capacity to exit its bailout programme into question.

:: What measures/actions would you suggest to get the world economy moving forward?

As a mere journalist I would tend to leave such judgements to actual policymakers and economists.

However a few ideas that have been suggested include: quantitative easing (eg money creation) from the European Central Bank - though that is fraught with difficulties, notably the refusal of the Bundesbank to co-operate.

Clearly some euro members desperately need to reform their public sectors. But unfortunately there are no easy answers for the current malaise, which is why markets remain so concerned.


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Google Spending Spree Hits Quarterly Profits

A 30% rise in operating costs has hit Google's third quarter profits, sending shares 3% lower in extended trading.

The Internet search leader earned $2.81bn (£1.75bn) for the three months ending in September compared to income of $2.97bn in the same period last year - a fall of 5%.

The slip was blamed on the addition of nearly 3,000 employees and wider investment - a strategy that has concerned investors.

The results fell below analyst estimates and the share price decline was on top of a 4% fall over the year so far.

Analysts argue that Google could be making more money if not for CEO Larry Page's belief that some short-term gains should be sacrificed so that the company can invest in projects and other research that could take years to pay off.

Page refers to these sometimes risky initiatives as "moon shots".

He defends them by pointing out that Google might not have ever developed its market-leading Android mobile software and Chrome Web browser if the company had not taken such risks.

Some of the innovations Google is still trying to fine tune include connected eye-wear such as Google Glass, internet-beaming balloons, a fleet of drones, driverless cars and robots.

Google's operating expenses surged 30% from a year earlier to $5bn in the third quarter.

The pace of rising expenses outstripped the 20% gain in Google's third-quarter revenue to $16.5bn (£10.3bn).

A big chunk of the higher expenses went toward bringing in the extra staff.

In a positive sign, Google's average ad prices in the third quarter dipped by just 2% from last year - the smallest decrease during what is now a three-year slump in the prices paid to Google for ads appearing alongside search results and other Web content.

The measure, known as "cost-per-click", has sagged because of the growing popularity of smartphones over laptops and desktop PCs which have better screens to see marketing.

Google has been able to offset the lower ad prices by inducing people to click on marketing links more frequently.


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Bank 'Gloomier' As Economy Woes Hit Markets

The Bank of England's chief economist has spoken of his concerns for the UK's economic outlook as it writhes in both "agony and ecstasy" alongside weaker global growth.

Andy Haldane told a business audience the Bank may need to keep interest rates lower for longer than previously thought to reduce the chance of the economy slipping into long-term stagnation.

He cited greater financial and political risks and the danger that wages and productivity might continue to fail to recover as forecast.

"Put in rather plainer English, I am gloomier," he said.

"This implies interest rates could remain lower for longer, certainly than I had expected three months ago."

His remarks came at the end of a week in which stock markets tumbled and pushed back their expectations for the timing of the first UK rate rise to towards the back end of next year.

Video: Investing? Stocks, Savings Or ISAs?

Fears of recession in the eurozone, weakness in the US and China and an end to the US Federal Reserve's quantitative easing (QE) programme contributed to the sell-off that saw £50bn wiped from the value of the FTSE 100 in just two days.

The London market was over 1% higher on Friday and the pound lost half a cent against the dollar in the wake of Mr Haldane's comments.

He said Britain's economy was "writhing in both agony and ecstasy" amid the volatility and raised the spectre of "secular stagnation", meaning a long period of negligible growth as a result of the world's woes.

"If there is genuine uncertainty about the path of the economy, the optimal policy response may be to avoid the worst outcomes", he said.

The UK's economy has been growing steadily this year - outperforming the G20 - with growth of 0.9% measured in the second quarter and unemployment falling to a 6% rate.

But wage growth remains muted and inflation is falling - with both factors a problem for a recovery largely built on consumer spending.

While they formed part of Mr Haldane's argument on UK policy, the country's economic performance is in stark contrast to that of its biggest trading partner, the eurozone.

The IMF recently forecast a 40% chance of eurozone recession - with even Germany on the brink - as the area battles low inflation, high unemployment and higher risks associated with the west's sanctions against Russia over Ukraine.

It was revealed on Thursday that five nations using the single currency had slipped into deflation while Greece's borrowing costs rose to 9% - a level seen as unaffordable again amid concerns relating to its bailout programmes.

The European Central Bank is under pressure to launch its own programme of QE to provide stimulus.


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Virgin Money Delays Float Amid Market Chaos

By Mark Kleinman, City Editor

Virgin Money is extending the timetable for its £2bn stock market listing because of market volatility which has prompted the collapse of several high-profile City deals.

Confirming a report by Sky News the bank, which is part-owned by Sir Richard Branson's Virgin Group, issued a statement on Friday saying that it will delay a plan to sell shares on the London Stock Exchange until after the end of this month.

"Virgin Money continues to progress its plan for an initial public offering, mindful of market conditions. It now expects admission to occur later than October 2014 and as soon as constructive market conditions allow," the company said.

Its chief executive, Jayne-Anne Gadhia, said:

"Virgin Money continues to perform strongly and we remain focused on delivering a successful initial public offering as soon as market conditions allow."

In a statement issued on 2 October, Virgin Money had said that it expected admission of its shares to the London market to take place before the end of October.

Sources insisted that the plan to raise £150m by selling shares in the company was still on track to take place following positive initial discussions with potential investors.

Earlier this week, Aldermore, another so-called challenger bank, said it was abandoning its flotation because of the tough equity market conditions which have seen the FTSE-100 have its worst week for many months.

Scotland's rejection of independence in last month's referendum and Virgin Money's strong recent trading had persuaded the bank's board to press ahead with a flotation this year, rather than waiting until 2015.

Virgin Group and WL Ross, a US-based investment vehicle, collectively own just over 90% of the bank, plan to educe their stakes in order to comply with listing authorities' requirements relating to the number of shares which must be freely floated.

Virgin Money declined to comment.


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UK Banks To Take Forex Fines Hit Within Weeks

By Mark Kleinman, City Editor

Some of Britain's biggest banks will set aside hundreds of millions of pounds in the next few weeks as they prepare to settle with regulators after a probe into the manipulation of foreign exchange markets.

Sky News has learned that Barclays, HSBC and Royal Bank of Scotland (RBS) are all preparing to allocate substantial provisions ahead of a prospective deal with the Financial Conduct Authority (FCA).

Insiders said that at least one of the banks was likely to set aside a much higher figure than its anticipated FCA fine amid ongoing discussions with authorities in the US.

They added that the foreign exchange probe would see well over £500m set aside by the three banks in aggregate when they report third-quarter results within the space of a few days at the end of the month.

The provisions, which will follow similar moves this week by Citigroup and JP Morgan, follow crunch talks held between the banks and the FCA in September.

Sky News exclusively revealed details of those discussions, although sources said the aggregate penalty for the six banks in settlement talks was likely to be lower than the £2bn indicated at the time.

The so-called omnibus settlement, which the banks have been keen to coordinate with the FCA, will be the largest group penalty ever imposed by the City watchdog.

The FCA will find the banks guilty of a string of systems and control failures in their foreign exchange businesses following the emergence of concerns that currency markets had been manipulated in a similar way to interbank borrowing rates such as Libor.

The six banks, which also include UBS, are likely to finalise their settlement with the FCA by the end of next month, although the timetable could slip.

One executive said the fact that the regulator had indicated the scale of potential fines meant they were under pressure from auditors to set aside provisions in their third-quarter numbers.

The UK banks are still discussing internally whether to top up their warchests for regulatory settlements to encompass other national regulators as well as the FCA.

One source said at least one major British lender would also increase its compensation tab for mis-selling payment protection insurance in the coming weeks.

Barclays, HSBC and RBS declined to comment.


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Tesco Profit Shortfall 'Better Than Feared'

By Mark Kleinman, City Editor

A shortfall in half-year profits at Tesco which plunged Britain's biggest retailer into crisis is next week expected to be disclosed to have been smaller than initially feared.

Sky News understands that the supermarket chain plans to announce alongside its first-half results on Thursday that it had previously overstated earnings by between £200m and £250m.

The final figure was likely to be somewhere close to the middle of that range, a banking source said.

The numbers are still being prepared by Tesco's auditors this weekend and a final figure for the mis-statement will not be identified until the middle of the week, according to the source.

If the accounting error is below the £250m figure indicated last month, however, the news will be greeted with relief by the City following speculation that it could have to inflate that number substantially.

Dave Lewis, Tesco's chief executive, told staff yesterday that he expected to be able to give a "clear and accurate indication" of the company's performance during the first half of the year.

An investigation being undertaken by Deloitte and Freshfields will not be completed in time for the results announcement but is understood to point towards there being no requirement at this stage for previous years' profits to be restated.

Eight executives have been asked to stand aside to facilitate the probe, which is focused on payments from Tesco's suppliers.

Sky News also understands that Tesco has asked Greenhill, the investment bank, to field offers from bidders for assets such as Dunnhumby, the marketing services group behind the grocer's Clubcard loyalty scheme.

Sources said that Advent International, TPG and at least one other firm had enquired about Dunnhumby's availability but were being told that Mr Lewis was not keen to hold talks about a deal at this time.

Tesco owns a number of businesses - including an Asian retail empire valued by some analysts at up to £10bn - which could be sold if its board decides it needs to raise capital.

The accounting crisis has triggered investigations by the Financial Conduct Authority and Financial Reporting Council, and raised questions about the future of chairman Sir Richard Broadbent.

Tesco declined to comment.


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