Quentin Tarantino unchains America’s tormented past in “Django”






LOS ANGELES (Reuters) – Twenty years after Quentin Tarantino unveiled his first film “Reservoir Dogs,” the director has turned his eye to America’s slavery history, spinning a blood-filled retribution tale in his trademark style for “Django Unchained.”


Tarantino, 49, has become synonymous with violence and dark humor, taking on the Nazis in “Inglourious Basterds” and mobsters in “Pulp Fiction.”






In “Django Unchained,” to be released in U.S. theaters on Christmas Day, he fuses a spaghetti Western cowboy action adventure with a racially charged revenge tale set in the 19th century, before the abolition of slavery in the United States.


Jamie Foxx stars as a slave whose freedom is bought by a former dentist, played by Christoph Waltz. The two set off as bounty hunters, rounding up robbers and cattle rustlers before turning their attention to brutal plantation owners in America’s Deep South.


Tarantino is well-versed in delivering violence. But the director said he faced “a lot of trepidation” about filming the slavery scenes. He has already come under fire from some critics for the frequent use in the film of the “N-word” – a racial slur directed at blacks.


The director said he was initially hesitant to ask black actors to play slaves who are shackled and whipped, and even considered filming outside of the United States.


But a dinner with veteran Oscar-winning actor Sidney Poitier, whom Tarantino called a “father figure,” changed his mind after Poitier urged him to not “be afraid” of his film.


“This movie is a deep, deep, deep American story, and it needed to be made by an American, and it needed to star Americans. … Lots of the movies dealing with this issue have usually had Brits playing Southerners and it creates this arm’s-distance quality,” Tarantino said.


Much of the film’s more graphic slavery scenes, such as gladiator-style fights to the death and being encased naked in a metal hot box in the heat of the Southern sun, are drawn from real accounts.


“We were shooting on hallowed ground. This was the ground of our ancestors. … Their blood was in the grass, there’s still bits of flesh embedded in the bark,” Tarantino said.


The film has received good reviews from critics and is expected to add Oscar nominations in January to its five Golden Globe nods.


With the exception of Waltz, who plays eccentric German bounty hunter Dr. King Schultz, the majority of the main players are not only American but from the South.


“It seemed sacred to us, and we couldn’t help but channel those emotions, everybody on the crew and on the set. … Those were very moving days,” Tarantino said.


‘DESPICABLE’ CHARACTERS


Tarantino reunited with Waltz, who won an Oscar in 2010 for his role as a menacing Nazi officer in “Inglourious Basterds,” and long-time collaborator Samuel L. Jackson, who plays slave housekeeper Stephen, a character who Tarantino described as “the most despicable black (character)” in movie history.


“Stephen might be frankly the most fascinating character in the whole piece, and it was important to deal with that whole upstairs-downstairs aspect of the Antebellum South,” he said.


The role that has people talking is Leonardo DiCaprio‘s first villainous turn as a racist plantation owner – a stark contrast from his Hollywood heartthrob “Titanic” days and roles as eccentric Americans in “The Aviator” and “J. Edgar.”


Asked how he felt to be the first director to make DiCaprio a villain, Tarantino laughed, saying he felt “pretty darn good about it.” He commended DiCaprio for turning into a “Southern-fried Caligula,” referring to the tyrannical ancient Roman emperor.


“I saw him as a petulant boy emperor. … He has nothing but hedonistic hobbies and vices to indulge him, and it’s almost as if he’s rotting from the inside,” Tarantino said.


The film’s female lead, Django’s wife Broomhilda played by Kerry Washington, moves away from Tarantino’s fierce screen women such as Uma Thurman in “Kill Bill” and Diane Kruger in “Inglourious Basterds.”


Tarantino said Broomhilda was meant to be the “princess in exile.” He said he was “annoyed” when he was asked by a friend why Broomhilda did not exact revenge on her abusers in the same way as Thurman’s “Kill Bill” character. The film, he said, is “Django’s story.”


“It invokes … that odyssey that Django goes on and gives the black slave narrative the romantic dimensions of great opera or great folklore tales,” Tarantino said.


(Editing by Jill Serjeant, Patricia Reaney and Will Dunham)


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Alcohol fraud rising, say traders












UK tax authorities are not doing enough to tackle alcohol duty fraud, claims a leading off-licence chain.


Bargain Booze told the BBC that the number of stores telling HM Revenue and Customs that they face illegal competition is rising.


Last year HMRC received over 600 reports to its tax hotline relating to alcohol fraud.


The Revenue said it acted on every piece of intelligence, but admitted investigations could take years.


The government has given HMRC £17m to tackle the gangs behind the fraud.


‘Paper event’


Continue reading the main story

Start Quote



There are outlets all over the country which are selling at prices we couldn’t get even get close to matching and nobody is stopping them”



End Quote David Visick The Federation of Wholesale Distributors


Alcohol duty fraud in the UK often involves exporting alcohol to the EU – untaxed – and then bringing it back into the UK with false paperwork.


This method exploits EU rules which state duty does not have to be paid on alcohol when it is being transferred between registered producers or wholesalers – it is only paid when it enters the marketplace.


But the BBC’s 5 live Investigates programme has learned that some lorries containing duty-unpaid alcohol meant for export never even leave the UK.


“Increasingly it’s just a paper event – the lorry never goes abroad, so the actual product never leaves the UK. The lorry just stops on a lay-by somewhere and gets turned around,” says Keith Webb, acting managing director of Bargain Booze.


The illicit alcohol ends up in the hands of rogue wholesalers and retailers who then sell it on at prices which legitimate traders say are only possible if duty has been evaded.


A study published by the All Party Parliamentary Beer Group earlier this year, said HMRC estimates up to 1 in 5 cans and bottles of beer sold in the UK is illicit, and beer smuggling could be costing the Treasury around £500m per year in lost duty alone.


Representatives from the alcohol retail industry claim the total cost to the Exchequer could be billions of pounds: “HMRC view the loss of revenue to the Exchequer at £1.2bn, but that excludes wine. Within the trade, the real cost to the Exchequer is viewed as something in excess of £4bn a year,” says Keith Webb.


Illegal off-licences


5 live Investigates visited one suspected illegal wholesaler in the North West of England – a warehouse on an industrial estate. The programme team saw a wide range of alcohol being sold at very low prices, compared to what is offered on the high street.


For example, six bottles of Echo Falls Chardonnay was priced at £16.99 and 24 cans of Foster’s lager was £13.49.


Continue reading the main story

Alcohol duty fraud in the UK


  • EU law requires that alcohol can be moved “duty unpaid” between registered warehouses

  • Duty becomes payable at the point it enters the market – when it is sold to a non-bonded customer

  • HMRC estimates duty fraud accounts for lost legitimate sales in the UK of over £1bn, with beer estimated at around half that total

  • HMRC estimates that beer smuggling may be currently costing the Treasury around £500m in lost duty per year

  • They believe that at least 1 in 10, and possibly 1 in 5, of all cans and bottles of beer on sale in the UK is duty unpaid

  • Once fraudsters have smuggled beer back to the UK it can enter the legitimate supply chain, reappearing undetected alongside duty-paid beer in supermarkets and off-licences

  • HMRC believes wine duty fraud is also significant in the UK and the Federation of Wholesale Distributors says its members have seen a decline in sales of an estimated £750m

Source: All-Party Parliamentary Beer Group, Beer Tax Fraud Inquiry, July 2012



A leading legitimate cash-and-carry operator said it could not find beers and wines so cheap even at wholesale prices, let alone match the on-the-shelf price offered to members of the public.


The cash-and-carry owner, who did not want to be named due to fear of reprisal from criminal gangs, says it would have to pay around £19.35 for a box of six bottles of Echo Falls Chardonnay – of that, £11.40 would be duty.


The same amount and brand of lager would cost £16.56, with duty at £9.36 per case.


Another legitimate wholesaler based in the West Midlands told the BBC its beer sales have fallen by around £20m in the last seven years as a direct result of illegal wholesalers operating in the same area.


Another legal retailer in the North West of England said it may stop selling alcohol altogether in the next 10 years because it cannot compete with the illegal trade.


“There are outlets all over the country which are selling at prices we couldn’t even get close to matching and nobody’s stopping them,” says David Visick from The Federation of Wholesale Distributors.


“That’s the responsibility of HMRC, but HMRC is more interested in chasing the problem to the root, to find the big criminals gangs who are behind this.”


Tackling criminal gangs


The BBC has been told one wholesaler suspected of alcohol fraud has been reported to HMRC over 30 times in the last 18 months – yet is still operating.


Continue reading the main story

5 live Investigates


Listen to the full report on 5 live Investigates on Sunday, 23 December at 21:00 GMT.



Sixteen people were convicted of alcohol fraud between 2009/2010, according to HMRC figures, and 40 civil penalties have been issued this year.


“We could chalk up a cricket score of prosecutions of small players and pawns in the organisations and that would make our outputs look good,” says Andy Leggett, HMRC’s deputy director of alcohol, tobacco & gambling taxes.


Continue reading the main story

Start Quote



Every single piece of intelligence is acted upon, but that does not necessarily mean we will go and knock on that specific door in the next week”



End Quote Andy Leggett HMRC


“But the reality is, that would have zero impact on the fraud because those people would be replaced within days.”


The government has allocated £917m to HMRC to tackle tax avoidance, evasion and criminal attack over the next four years – £17m of that is to specifically target the organised criminal gangs behind alcohol fraud.


“Every single piece of intelligence is acted upon, but that does not necessarily mean we will go and knock on that specific door in the next week,” says Andy Leggett. “That may lead to an investigation many years down the track or may lead to an investigation elsewhere.”


Mr Leggett says HMRC is determined to tackle the criminal gangs, but disrupting their trade takes time. Enforcement officers will use criminal prosecutions and civil penalties to dismantle the illicit trade, but he acknowledges the frustration felt by other traders operating lawfully.


Earlier this year, HMRC smashed a £50m-a-year alcohol tax evasion scam – the biggest uncovered. The gang imported beers and wines from France duty-free for onward export, but the stock never left the UK and was diverted for sale without taxes and duties being paid. The ringleader, Kevin Burrage, was jailed for 10 years.


You can listen to the full report on 5 live Investigates on Sunday, 23 December, at 21:00 GMT on BBC 5 live. Listen again via the 5 live website or by downloading the 5 live Investigates podcast.


BBC News – Business





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France checks ministers’ taxes after Swiss bank report






PARIS (Reuters) – French tax authorities said they were carrying out a “routine” examination of government members’ personal finances and denied a report that Budget Minister Jerome Cahuzac was being singled out for a specific probe.


The statement was issued through Cahuzac’s ministry amid weekend media reports that President Francois Hollande could be considering a government reshuffle, seven months after his May election victory against Nicolas Sarkozy.






Cahuzac, who is leading an official crackdown on tax evasion, has vigorously denied reports by Mediapart that he held a Swiss bank account with UBS (UBSN.VX) until 2010 and is suing the investigative news website for libel.


Such allegations are particularly sensitive at a time when the government has sharply increased income tax for the highest earners and heaped criticism on wealthy individuals who have sought to shift their tax base abroad.


The budget minister is at risk of losing his portfolio in an imminent shake-up, newspapers Le Parisien and Le Journal du Dimanche both reported on Sunday, citing unidentified government sources.


But Cahuzac’s ministry denied a new Mediapart report on Friday that its tax inspectors were investigating his own French assets. The minister had ordered checks on all government members as standard procedure, it said.


“As is routine with each new government, the budget minister has asked the public finances directorate to examine the tax situation of the government’s members,” the ministry said in a statement issued late on Saturday.


“It is this procedure that is under way, with the aim of ensuring that the position of every government member is irreproachable,” it said. “No inspection or investigation is in progress with regard to any government member.”


(Reporting by Laurence Frost and Gerard Bon; Editing by Stephen Powell)


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Wall Street Week Ahead: A lump of coal for "Fiscal Cliff-mas"

NEW YORK (Reuters) - Wall Street traders are going to have to pack their tablets and work computers in their holiday luggage after all.


A traditionally quiet week could become hellish for traders as politicians in Washington are likely to fall short of an agreement to deal with $600 billion in tax hikes and spending cuts due to kick in early next year. Many economists forecast that this "fiscal cliff" will push the economy into recession.


Thursday's debacle in the U.S. House of Representatives, where Speaker John Boehner failed to secure passage of his own bill that was meant to pressure President Obama and Senate Democrats, only added to worry that the protracted budget talks will stretch into 2013.


Still, the market remains resilient. Friday's decline on Wall Street, triggered by Boehner's fiasco, was not enough to prevent the S&P 500 from posting its best week in four.


"The markets have been sort of taking this in stride," said Sandy Lincoln, chief market strategist at BMO Asset Management U.S. in Chicago, which has about $38 billion in assets under management.


"The markets still basically believe that something will be done," he said.


If something happens next week, it will come in a short time frame. Markets will be open for a half-day on Christmas Eve, when Congress will not be in session, and will close on Tuesday for Christmas. Wall Street will resume regular stock trading on Wednesday, but volume is expected to be light throughout the rest of the week with scores of market participants away on a holiday break.


For the week, the three major U.S. stock indexes posted gains, with the Dow Jones industrial average <.dji> up 0.4 percent, the S&P 500 <.spx> up 1.2 percent and the Nasdaq Composite Index <.ixic> up 1.7 percent.


Stocks also have booked solid gains for the year so far, with just five trading sessions left in 2012: The Dow has advanced 8 percent, while the S&P 500 has climbed 13.7 percent and the Nasdaq has jumped 16 percent.


IT COULD GET A LITTLE CRAZY


Equity volumes are expected to fall sharply next week. Last year, daily volume on each of the last five trading days dropped on average by about 49 percent, compared with the rest of 2011 - to just over 4 billion shares a day exchanging hands on the New York Stock Exchange, the Nasdaq and NYSE MKT in the final five sessions of the year from a 2011 daily average of 7.9 billion.


If the trend repeats, low volumes could generate a spike in volatility as traders keep track of any advance in the cliff talks in Washington.


"I'm guessing it's going to be a low volume week. There's not a whole lot other than the fiscal cliff that is going to continue to take the headlines," said Joe Bell, senior equity analyst at Schaeffer's Investment Research, in Cincinnati.


"A lot of people already have a foot out the door, and with the possibility of some market-moving news, you get the possibility of increased volatility."


Economic data would have to be way off the mark to move markets next week. But if the recent trend of better-than-expected economic data holds, stocks will have strong fundamental support that could prevent selling from getting overextended even as the fiscal cliff negotiations grind along.


Small and mid-cap stocks have outperformed their larger peers in the last couple of months, indicating a shift in investor sentiment toward the U.S. economy. The S&P MidCap 400 Index <.mid> overcame a technical level by confirming its close above 1,000 for a second week.


"We view the outperformance of the mid-caps and the break of that level as a strong sign for the overall market," Schaeffer's Bell said.


"Whenever you have flight to risk, it shows investors are beginning to have more of a risk appetite."


Evidence of that shift could be a spike in shares in the defense sector, expected to take a hit as defense spending is a key component of the budget talks.


The PHLX defense sector index <.dfx> hit a historic high on Thursday, and far outperformed the market on Friday with a dip of just 0.26 percent, while the three major U.S. stock indexes finished the day down about 1 percent.


Following a half-day on Wall Street on Monday ahead of the Christmas holiday, Wednesday will bring the S&P/Case-Shiller Home Price Index. It is expected to show a ninth-straight month of gains.


U.S. jobless claims on Thursday are seen roughly in line with the previous week's level, with the forecast at 360,000 new filings for unemployment insurance, compared with the previous week's 361,000.


(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: rodrigo.campos(at)thomsonreuters.com)


(Reporting by Rodrigo Campos; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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UK paper suing Lance Armstrong over libel case


LONDON (AP) — Lance Armstrong is being sued for more than $1.5 million by a British newspaper over the settlement of a libel action, which followed doping allegations against the cyclist that it published.


The Sunday Times paid Armstrong 300,000 pounds (now about $485,000) in 2006 to settle a case after it reprinted claims from a book in 2004 that he took performance-enhancing drugs.


The U.S. Anti-Doping Agency concluded this year that Armstrong led a massive doping program on his teams. Armstrong was stripped of his seven Tour de France titles and banned from cycling for life.


The Sunday Times announced in an article in its latest edition that it has issued legal papers against Armstrong.


"It is clear that the proceedings were baseless and fraudulent," the paper said in a letter to Armstrong's lawyers. "Your representations that you had never taken performance enhancing drugs were deliberately false."


The paper, which is owned by Rupert Murdoch's News Corp., said its total claim against Armstrong is "likely to exceed" 1 million pounds ($1.6 million).


"The Sunday Times is now demanding a return of the settlement payment plus interest, as well as its costs in defending the case," the paper said.


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Senators slam movie's torture scenes




In the new film "Zero Dark Thirty," Jessica Chastain plays a CIA analyst who is part of the team hunting Osama bin Laden.




STORY HIGHLIGHTS


  • Sens. Feinstein, McCain, Levin send letter calling new film "grossly inaccurate"

  • Letter adds to controversy over depiction of torture as a key to finding bin Laden, Bergen says

  • Senate committee has approved 6,000-page classified report on CIA interrogations program

  • Bergen says as much as possible of that report should be released to the public




Editor's note: Peter Bergen is a CNN national security analyst and author of "Manhunt: The Ten-Year Search for bin Laden, from 9/11 to Abbottabad."


(CNN) -- On Wednesday, three senior U.S. senators sent Michael Lynton, the CEO of Sony Pictures, a letter about "Zero Dark Thirty," the much-discussed new movie about the hunt for Osama bin Laden, which described the film as "grossly inaccurate and misleading."


In the letter, Senate Intelligence Committee Chairman Dianne Feinstein, D-California, Senate Armed Services Committee Chairman Carl Levin, D-Michigan, and Sen. John McCain, R-Arizona, expressed their "deep disappointment" in the movie's depiction of CIA officers torturing prisoners, which "credits these detainees with providing critical lead information" about the courier who led the CIA to bin Laden's hiding place in northern Pakistan.


The senators point out that the filmmakers of "Zero Dark Thirty" open the movie with the words that it is "based on first-hand accounts of actual events." The film then goes on, the senators say, to give the clear implication "that the CIA's coercive interrogation techniques were effective in eliciting important information related to a courier for Usama Bin Laden."


Review: 'Zero Dark Thirty' is utterly gripping



Peter Bergen

Peter Bergen



The senators write that this is not supported by the facts: "We have reviewed CIA records and know that this is incorrect."


Last week, the Senate Intelligence Committee voted to sign off on the findings of its three-year study of the CIA's detention and interrogation program, during the course of which the committee's staff reviewed more than 6 million pages of records about the program.


Based on the findings of that review, Sens. Feinstein and Levin had released a statement eight months ago that said, "The CIA did not first learn about the existence of the Usama Bin Laden courier from CIA detainees subjected to coercive interrogation techniques. Nor did the CIA discover the courier's identity from detainees subjected to coercive techniques. ... Instead, the CIA learned of the existence of the courier, his true name and location through means unrelated to the CIA detention and interrogation program."


In their letter to Sony, the three senators write, "(W)ith the release of Zero Dark Thirty, the filmmakers and your production studio are perpetuating the myth that torture is effective. ... We believe that you have an obligation to state that the role of torture in the hunt for Usama Bin Laden is not based on the facts."


Requests from Sony Pictures for comment on the senators' letter yielded a response referring to a statement that the film's director Kathryn Bigelow and screenwriter Mark Boal had released last week:


"This was a 10-year intelligence operation brought to the screen in a two-and-a-half-hour film. We depicted a variety of controversial practices and intelligence methods that were used in the name of finding bin Laden. The film shows that no single method was necessarily responsible for solving the manhunt, nor can any single scene taken in isolation fairly capture the totality of efforts the film dramatizes. One thing is clear: the single greatest factor in finding the world's most dangerous man was the hard work and dedication of the intelligence professionals who spent years working on this global effort. We encourage people to see the film before characterizing it."


'Zero Dark Thirty' puts U.S. interrogation back in the spotlight










"Zero Dark Thirty" does indeed show many scenes of the various forms of sleuthing at the CIA that were necessary to track down al Qaeda's leader.


But the statement from the filmmakers does not address the fact that eight months ago, the chairman of the Senate Intelligence Committee had publicly said that based on an exhaustive investigation, there was no evidence that coercive interrogations helped lead to bin Laden's courier -- which is clearly what the film suggests, no matter what retrospective gloss the filmmakers now wish to apply to the issue.


Nor does the statement indicate if Sony plans to put a disclaimer at the beginning of "Zero Dark Thirty" explaining that the role of coercive interrogations in tracking down bin Laden that is shown in the film is not supported by the facts.


As I outlined in a piece on CNN.com 10 days ago assessing the role that coercive interrogations might have played in the hunt for bin Laden, about half an hour of the start of "Zero Dark Thirty" consists of scenes of a bloodied al Qaeda detainee strung to the ceiling with ropes who is beaten; forced to wear a dog collar while crawling around attached to a leash; stripped naked in the presence of a female CIA officer; blasted with heavy metal music so he is deprived of sleep; forced to endure multiple crude waterboardings; and locked into a coffin-like wooden crate.


These are the scenes that will linger with filmgoers, far more than the scene in the movie where two CIA analysts discuss what will prove to be a key lead to bin Laden that surfaces in an old file. Brutal interrogations, of course, make for a better movie than a discussion at the office.


It is only after systematic abuse by his CIA interrogators in "Zero Dark Thirty" that the al Qaeda detainee is tricked into believing that he has already given up key information, and he starts cooperating and tells them about a man known as Abu Ahmed al-Kuwaiti, who ultimately proves to be bin Laden's courier.


Acting CIA director Michael Morell, in a letter to CIA employees on Friday, took strong exception to this portrayal of how bin Laden was found:


"The film creates the strong impression that the enhanced interrogation techniques that were part of our former detention and interrogation program were the key to finding Bin Ladin. That impression is false. As we have said before, the truth is that multiple streams of intelligence led CIA analysts to conclude that Bin Ladin was hiding in Abbottabad. Some came from detainees subjected to enhanced techniques, but there were many other sources as well. "


"Zero Dark Thirty" opened Wednesday in New York and Los Angeles and will open nationwide in the second week in January.


Let's hope that the attention that "Zero Dark Thirty" has directed to the issue of what kind of intelligence was derived from the CIA's coercive interrogations will help to put pressure on the White House and the CIA to release to the public as much as possible of the presently classified 6,000-page report by the Senate Intelligence Committee that examines this issue.


_____________


Full disclosure: Along with other national security experts, as an unpaid adviser I screened an early cut of "Zero Dark Thirty." We advised that al Qaeda detainees held at secret CIA prison sites overseas were certainly abused, but they were not beaten to a pulp, as was presented in this early cut. Screenwriter Mark Boal told CNN as a result of this critique, some of the bloodier scenes were "toned down" in the final cut. I also saw this final cut of the film. Finally, HBO is making a theatrical release documentary which will be out in 2013 based on my book about the hunt for bin Laden entitled "Manhunt."


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“Hobbit” fever beats Tom Cruise at box office






(Reuters) – The big-budget “Hobbit” fantasy movie ruled movie box office charts for a second straight weekend, fending off Hollywood heavyweight Tom Cruise in new crime drama “Jack Reacher.”


The Hobbit: An Unexpected Journey” hauled in nearly $ 37 million from theaters in the United States and Canada, according to studio estimates of Friday-through-Sunday ticket sales. The film is the first of three movies based on the classic J.R.R. Tolkien novel about a world of dwarfs, elves and dragons in the fictitious Middle Earth.






In second place, Cruise’s “Jack Reacher” about the investigation into a sniper shooting brought in just short of $ 17 million at U.S. and Canadian theaters. Distributor Paramount Pictures postponed a premiere of the film after the fatal school shooting in Newtown, Connecticut, sparked new scrutiny of violent movies.


Adult comedy “This is 40,” starring Paul Rudd and Leslie Mann as a middle-aged couple, brought in $ 12 million, finishing in third place.


The Hobbit” was distributed by Time Warner Inc’s Warner Bros. studio. Paramount Pictures, a unit of Viacom Inc, released “Jack Reacher.” Comcast Corp’s Universal Pictures distributed “This is 40.”


(Reporting By Lisa Richwine and Andrea Burzynski)


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Borrowing grows more than expected









ONS chief economist Joe Grice: “There are straws in the wind that look promising”



The government had to borrow slightly more than expected in November.


It borrowed £17.5bn, £1.2bn higher than a year earlier, official figures show. Economists had predicted borrowing would fall slightly to about £16bn.


However, the Office for National Statistics said a 0.1% growth in the all-important services sector of the economy was “promising”.


It also revised down its estimate for growth between July and September to 0.9% from 1%.


The UK’s official statistics authority regularly revises its data on the value of the output of the economy as more information is collected from businesses.


Economists were divided as to what the different figures said about the state of the UK economy.


“All in all, the UK appears to be ending 2012 not in particularly great shape,” said James Knightly from ING.


However, for Alan Clarke from Scotiabank, the growth in services “makes it all the more likely that the UK did not slip into a triple-dip recession at the end of the year”.


The Bank of England said earlier this week that it thought the UK economy would contract again in the last three months of the year following the strong growth between July and September, when the economy received a boost from Olympic ticket sales.


Continue reading the main story
‘Significant’ investment


The services sector grew 1.2% over the period and “held on” to those gains in October, the Office for National Statistics said.


Joe Grice, chief economist at the ONS, described the service sector gains as “promising straws in the wind” for the UK economy.


He also described a £1.1bn rise in business investment to £31.5bn as “significant”.


But the economy as whole still remains 3% below its pre-recession 2008 peak, he said.


Meanwhile consumer confidence remains volatile, according to a survey by research firm GfK on Friday showing a “dramatic” fall in confidence in December, contrasting strongly with an equally sharp rise in November.


Public borrowing




The BBC’s Declan Curry explains just what GDP stands for, and why we should care



The bigger-than-expected increase in government borrowing adds to the problems faced by Chancellor George Osborne as he struggles to reduce public borrowing in the face of a stuttering economy.


November’s figure takes total borrowing so far this financial year to £92.7bn, £8.3bn more than the same period in 2011.


Danny Alexander, Chief Secretary to the Treasury said: “These figures reflect the fact that this country continues to be on a hard and difficult road back to economic prosperity.


“We’re making real progress getting public spending down; we’ve reduced the deficit by a quarter over the last couple of years and a million jobs have been created in the private sector.”


“But these figures today on borrowing and on growth reflect the fact that this country continues to face tough economic challenges, and that will continue to be the main priority for the coalition as we go into the new year.”


Rachel Reeves MP, Labour’s shadow chief secretary to the Treasury, said: “For all the chancellor’s smoke and mirrors in the autumn statement, these figures show that borrowing is rising and is up by almost 10% so far this year.


“The failure of David Cameron and George Osborne’s policies on jobs and growth means they are now even failing on the one test they set themselves – to get the deficit and debt down.”


BBC News – Business





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Belgium may hand Arnault tax file to Paris: press






PARIS (Reuters) – Belgian tax authorities may hand French tycoon Bernard Arnault’s file to their Paris counterparts for closer scrutiny of Brussels-based companies linked to his LVMH (MC.PA) luxury empire, according to media reports.


John Crombez, Belgium’s minister for fraud prevention, said any information on local “mailbox companies” held by France’s richest man should be shared with Paris, newspaper De Tijd reported on Saturday.






Belgian legal and government officials did not immediately return calls seeking comment. LVMH said in a statement that its Belgian companies complied with all applicable laws.


Arnault, 63, caused an outcry in France earlier this year when it emerged that he was seeking Belgian citizenship, while insisting that the move was not tax-related.


Other wealthy figures, including actor Gerard Depardieu, have blamed France’s high tax rates and recent increases for their decisions to leave the country. Soon after taking office in May, Socialist President Francois Hollande introduced a new 75 percent rate on income above 1 million euros ($ 1.3 million).


According to L’Echo, a Belgian daily, Arnault’s holdings in the country include several companies registered at the same Brussels address with combined assets of 7 billion euros.


“If Bernard Arnault is working with pure mailbox companies in Belgium we should signal this to French tax authorities,” the anti-fraud minister was quoted as saying.


LVMH said it was “surprised” by the press reports and denied any wrongdoing.


“The companies of Groupe Arnault and LVMH have very real economic activities in Belgium, where some of them have been based for several decades,” the company said in an emailed statement.


“All of their activities are fully compliant with Belgian tax legislation as well as international law.”


($ 1 = 0.7590 euros)


(Reporting by Laurence Frost and Barbara Lewis; Editing by John Stonestreet)


Business & Finance News – Yahoo! Finance





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Wall Street Week Ahead: A lump of coal for "Fiscal Cliff-mas"

NEW YORK (Reuters) - Wall Street traders are going to have to pack their tablets and work computers in their holiday luggage after all.


A traditionally quiet week could become hellish for traders as politicians in Washington are likely to fall short of an agreement to deal with $600 billion in tax hikes and spending cuts due to kick in early next year. Many economists forecast that this "fiscal cliff" will push the economy into recession.


Thursday's debacle in the U.S. House of Representatives, where Speaker John Boehner failed to secure passage of his own bill that was meant to pressure President Obama and Senate Democrats, only added to worry that the protracted budget talks will stretch into 2013.


Still, the market remains resilient. Friday's decline on Wall Street, triggered by Boehner's fiasco, was not enough to prevent the S&P 500 from posting its best week in four.


"The markets have been sort of taking this in stride," said Sandy Lincoln, chief market strategist at BMO Asset Management U.S. in Chicago, which has about $38 billion in assets under management.


"The markets still basically believe that something will be done," he said.


If something happens next week, it will come in a short time frame. Markets will be open for a half-day on Christmas Eve, when Congress will not be in session, and will close on Tuesday for Christmas. Wall Street will resume regular stock trading on Wednesday, but volume is expected to be light throughout the rest of the week with scores of market participants away on a holiday break.


For the week, the three major U.S. stock indexes posted gains, with the Dow Jones industrial average <.dji> up 0.4 percent, the S&P 500 <.spx> up 1.2 percent and the Nasdaq Composite Index <.ixic> up 1.7 percent.


Stocks also have booked solid gains for the year so far, with just five trading sessions left in 2012: The Dow has advanced 8 percent, while the S&P 500 has climbed 13.7 percent and the Nasdaq has jumped 16 percent.


IT COULD GET A LITTLE CRAZY


Equity volumes are expected to fall sharply next week. Last year, daily volume on each of the last five trading days dropped on average by about 49 percent, compared with the rest of 2011 - to just over 4 billion shares a day exchanging hands on the New York Stock Exchange, the Nasdaq and NYSE MKT in the final five sessions of the year from a 2011 daily average of 7.9 billion.


If the trend repeats, low volumes could generate a spike in volatility as traders keep track of any advance in the cliff talks in Washington.


"I'm guessing it's going to be a low volume week. There's not a whole lot other than the fiscal cliff that is going to continue to take the headlines," said Joe Bell, senior equity analyst at Schaeffer's Investment Research, in Cincinnati.


"A lot of people already have a foot out the door, and with the possibility of some market-moving news, you get the possibility of increased volatility."


Economic data would have to be way off the mark to move markets next week. But if the recent trend of better-than-expected economic data holds, stocks will have strong fundamental support that could prevent selling from getting overextended even as the fiscal cliff negotiations grind along.


Small and mid-cap stocks have outperformed their larger peers in the last couple of months, indicating a shift in investor sentiment toward the U.S. economy. The S&P MidCap 400 Index <.mid> overcame a technical level by confirming its close above 1,000 for a second week.


"We view the outperformance of the mid-caps and the break of that level as a strong sign for the overall market," Schaeffer's Bell said.


"Whenever you have flight to risk, it shows investors are beginning to have more of a risk appetite."


Evidence of that shift could be a spike in shares in the defense sector, expected to take a hit as defense spending is a key component of the budget talks.


The PHLX defense sector index <.dfx> hit a historic high on Thursday, and far outperformed the market on Friday with a dip of just 0.26 percent, while the three major U.S. stock indexes finished the day down about 1 percent.


Following a half-day on Wall Street on Monday ahead of the Christmas holiday, Wednesday will bring the S&P/Case-Shiller Home Price Index. It is expected to show a ninth-straight month of gains.


U.S. jobless claims on Thursday are seen roughly in line with the previous week's level, with the forecast at 360,000 new filings for unemployment insurance, compared with the previous week's 361,000.


(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: rodrigo.campos(at)thomsonreuters.com)


(Reporting by Rodrigo Campos; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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