Wednesday, 10 September 2014

Spurs face season away from home

Fans walk past a mural depicting the design for a new Tottenham Hotspur stadium. Tottenham Hotspur face having to play all their home matches away from White Hart Lane for one season.

A legal wrangle means they are "highly unlikely" to move into their new stadium as scheduled for 2017-18.
The Premier League club may have to find an alternative venue while construction work is carried out.

Plans for the 56,250-capacity stadium, next to their current White Hart Lane ground, are being challenged by the landowners.

Progress on the project appeared to take a big step forward in July when a compulsory purchase order of land was approved.

Possible alternative venues
Stadium Who plays thereCapacityDistance from White Hart Lane
WembleyEngland and selected matches90,00012.7 miles
Olympic StadiumNo one, until West Ham in summer 201654,0006 miles
Stadium MKMilton Keynes Dons30,00048.6 miles
But a Spurs statement issued on Wednesday said that decision was being challenged in the High Court and the club fear they will not able to move into the new stadium for the start of the 2017-18 season.

"The club has revised its construction programme in order to take the shortest possible time to construct," said the statement.

"This now therefore involves the club moving away from the Lane during construction for a period of one season, to start at the beginning of a season in order to comply with Premier League rules.

"We are currently undertaking due diligence on alternative stadium options."

The stadium would be built as part of a development that would also include the land their current home (capacity 36,240) stands on (external).
In 2011, Tottenham lost out to West Ham in a bid to move to the Olympic Stadium in Stratford.

The venue - which will be the Hammers' home from the 2016-17 season - is reportedly among alternatives, together with Wembley and Milton Keynes Dons, being considered for the time away from White Hart Lane.

But with West Ham established as the prime tenant, it is thought the Olympic Stadium is not a front-runner in the search for a temporary home.

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TECHNOLOGY Apple payments service may boost sales of larger iPhones

(Reuters) - The addition of a mobile payments service to Apple Inc's next iPhone could help to boost sales of the larger-screen phones and claw back market share lost to mobiles running on Google Inc's Android platform.

Apple shares rose as much as 1.3 percent on Wednesday, a day after the launch of the iPhone 6 and the Apple Watch - the first new product introduced by Chief Executive Tim Cook.

At least six brokerages raised their price target on Apple's stock by as much as $16 to a high of $116, but there was also a rare downgrade to the stock.

Many on Wall Street hailed Apple Pay - the company's new wireless payment system - with Piper Jaffray's Gene Munster calling it the "star of the show" at Tuesday's gala launch.

It will allow iPhone 6 and 6 Plus users to pay for a burger at McDonald's Corp or groceries at Whole Foods Market Inc at the tap of a button, using their American Express Co, Visa Inc or Mastercard Inc bank cards.

Samsung Electronics Co Ltd, Motorola Mobility and others include similar wireless technology in many Android smartphones. But with payment systems such as Google's Wallet failing to catch on, the technology is not standard in handsets.

"On the mobile payments front, we believe the company made a major breakthrough and cracked an important and vexing issue that has plagued the industry for several years regarding customer ownership," William Blair analysts wrote in a note.

Cook, who took over as CEO from Steve Jobs in 2011, has been under pressure to launch new services and come up with larger-screen phones to counter Samsung's popular Galaxy Note phablets.

Worldwide market share of iPhones, which contribute more than half of Apple's revenue, slipped to 11.7 percent for the quarter ended June from 13 percent a year earlier, according to research firm IDC. (http://bit.ly/Vqxmts)

"Apple Pay is a feature that should help sell Apple products and provide some small help to the bottom line," BMO Capital Markets analysts said.

But Andy Hargreaves, analyst at Pacific Crest, said growth potential from the iPhone 6 was largely priced into Apple's shares. He cut his rating to "sector perform" from "outperform", becoming the first analyst since May to downgrade the stock.

Apple Watch, the company's first new product since the iPad, is tethered to the iPhone 6 models. Starting at $349, it will receive phone calls and messages, play music and serve as a digital wallet to pay for goods.

The watch, which will go on sale in the United States next year, has received mixed reactions. Fashion commentators like its clean aesthetic, while some tech writers pointed out Apple's silence over battery life.

Sony Corp, Samsung, LG Electronics Inc and Qualcomm Inc have launched smartwatches based on Google's Android Wear, without great success.

"Apple Watch is attractive, but the need for phone tethering, short battery life, and lack of compelling features for people who do not want a watch will limit the market," Hargreaves said.

Apple shares were up slightly at $98.18 in morning trading. They closed down 0.38 percent on the Nasdaq on Tuesday.

(Additional reporting by Lehar Maan in Bangalore; Editing by Robin Paxton and Saumyadeb Chakrabarty)



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FORMULA 1 NEWS: Ferrari chairman quits after 23 years

Luca Di Montezemolo helped transform Ferrari into one of the world's most powerful brands.

Ferrari's Luca Di Montezemolo is to step down as long-time chairman of the Formula 1 team.

His departure follows a poor season on the track and disagreements with Sergio Marchionne, chief executive officer of parent company Fiat.

"This is the end of an era after almost 23 marvellous and unforgettable years," said Di Montezemolo, 67. "It has been a great privilege."

Marchionne will replace Di Montezemolo, who leaves the role on 13 October.

Ferrari have not won a drivers' or constructors' title since 2008 and are in the midst of their least competitive season for 20 years.

The team had their worst result of the year at the Italian Grand Prix on Sunday when Fernando Alonso retired with a hybrid system failure and team-mate Kimi Raikkonen finished ninth.

It is in stark contrast to their dominance of F1 in the late 1990s and early 2000s when seven-time world champion Michael Schumacher led the team to six consecutive constructors' championships.

Analysis from BBC Radio 5 live F1 commentator James Allen
"Di Montezemolo has turned the whole business around and made Ferrari into one of the most profitable car manufacturers in the world. With Michael Schumacher at the helm, they were unbeatable."But he has had a difference of opinion with Sergio Marchionne, who wants to expand the company. Marchionne has basically wanted Di Montezemolo out and he will be the new chairman."It is a big upheaval and will have a big impact on the Ferrari F1 team, but exactly what that impact that will be remains to be seen. Fernando Alonso will keep a close eye on it - he wants a good car, not upheaval."

Di Montezemolo had insisted at the weekend that reports he was to step down later this year were premature, adding that he had a contract for three years and he would be the one to say when he was leaving.

But he was immediately contradicted by Marchionne, who said: "We are good friends but his statements... these are things I wouldn't have said myself."

Marchionne also described the recent disappointing performance of Ferrari's Formula 1 racing team as "unacceptable" and said it was "absolutely non-negotiable" that Ferrari should win Formula 1 races.

In his statement, Di Montezemolo - who has been Ferrari chairman since 1991 - added: "It is the most wonderful company in the world and it has been an honour to have been its leader.

"I devoted all of my enthusiasm and commitment to it over the years.

Together with my family, it was, and continues to be, the most important thing in my life."

Under Di Montezemolo's tenure, Ferrari increased revenues 10-fold and tripled sales volumes as the Italian family business grew into one of the world's most powerful brands.

F1 supremo Bernie Ecclestone, 83, said: "I first met Luca in 1973. So yeah, it's a pity. We're going to miss him.
"His leaving is for me the same as Mr Enzo dying. He has become Ferrari.

You see him, you see Ferrari. You don't see anything else. You don't see Luca."
Ferrari under Di Montezemolo
YearConstructors' championshipsTotal team race winsDrivers' championships

1991Third0
1992Fourth0
1993Fourth0
1994Third1
1995Third1
1996Second3
1997Second5
1998Second6
1999First6
2000First10Michael Schumacher
2001First9Michael Schumacher
2002First15Michael Schumacher
2003First8Michael Schumacher
2004First15Michael Schumacher
2005Third1
2006Second9
2007First9Kimi Raikkonen
2008First8
2009Fourth1
2010Third5
2011Third1
2012Second3
2013Third2
2014 (as it stands)Fourth0

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TECHNOLOGY Google buys high-tech spoon maker, expands healthcare focus

SAN FRANCISCO (Reuters) - Google Inc has acquired the maker of a high-tech spoon that helps people suffering from neurodegenerative tremors to eat, the Internet company's latest foray into the healthcare and biotechnology market.



The company is joining the Google[x] division, which focuses on projects such as self-driving cars and drones and which has a Life Sciences group, Google said on Wednesday.



Google did not say how much it paid for Lift Labs.



Lift's tremor cancellation spoon, which costs $295, will continue to be available for sale, Lift said on its website on Wednesday. A sensor-packed handle on the spoon detects the hand tremors that afflict people with Parkinson's disease and Essential Tremor, and uses technology to stabilize itself.



Google said in a post on its Google+ service on Wednesday that it would also explore how Lift's technology "could be used in other ways to improve the understanding and management of neurodegenerative diseases such as Parkinson's disease and essential tremor."



Google co-founder Sergey Brin has said that he has a higher-than-average chance of contracting Parkinson's disease, which afflicted his mother.



Google, the world's No. 1 Internet search engine, has increasingly expanded into health-related services. Earlier this year Google said it was testing a special contact lens for diabetics that is capable of monitoring blood-sugar levels, and in 2013 Google created a separate company, Calico, which develops technologies to tackle health issues related to aging.



(Reporting by Alexei Oreskovic; editing by Matthew Lewis)







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FOOTBALL NEWS: Man Utd have 'bright future ahead'

Big money - Manchester United executive vice-chairman Ed Woodward (r) with £59.7m record signing Angel Di Maria

Executive vice-chairman Ed Woodward says Manchester United are on the brink of "something special".

Woodward was speaking to investors after United announced record annual revenues which have risen 19% to £433.2m, but profits fell by 84%.

"The 2013-14 season was challenging and disappointing," he said.

"But we are excited to have one of world's best managers, there is a real feeling we are at the start of something special."

The sharp fall in profits to £23.8m, from £146m a year ago was largely due to United's owners cashing in a tax credit in the previous financial year.

Woodward preferred to focus on the overall revenue rise and commercial income that has gone up by 24.1% to £189.3m following confirmation of a new shirt manufacturing deal with adidas.

However, it is clear from the fall in profits that the cost of last season was a heavy one.

United paid former manager David Moyes and his staff £5.2m following their exits, while their Premier League prizemoney was reduced by £7.4m following their seventh-placed finish.

The loss due to their failure to qualify for the Champions League will not be felt until the next round of figures, but the total cost will end up at more than £50m.

That does not include a £150m investment in six new players, including Angel Di Maria and Radamel Falcao.

And further additions in January have not been ruled out, with AS Roma midfielder Kevin Strootman believed to be on current manager Louis van Gaal's radar if he recovers from a serious knee surgery.

New Manchester United loan signing Radamel Falcao (l) meets assistant manager Ryan Giggs
"We feel we have a stable number in the squad and I wouldn't have expectations around January, but if there is a willingness from the manager to do something and the opportunity arises we will look at it," said Woodward.

With so many attacking options, it is still not entirely clear how Van Gaal intends to set his team up.

The club have said 18-year-old James Wilson is part of Van Gaal's plans after their decision to sell home-grown England striker Danny Welbeck to Arsenal on transfer deadline day.

Tyler Blackett, Reece James, Sam Johnstone and Jesse Lingard are also being cited as examples of United's continuing commitment to youth.

"OK, Danny has left, which is obviously disappointing because you never want to see a homegrown player leave," said Van Gaal's assistant Ryan Giggs.

"But this is a manager who gave Seedorf his chance, Kluivert his chance, Iniesta his chance, Xavi, Thomas Muller - he has got a track record of giving youngsters a chance.
"Tyler Blackett has played every game this season. Underneath [Robin] Van Persie and [Wayne] Rooney you have got [Adnan] Januzaj, James Wilson.

"Players will leave but we have got to make sure young players come through because United fans demand it. I want to see young players come through.
"That has been (the case) right through the history of Manchester United. We never want to lose that."

The continuing rise in revenue means the club are at no risk of Financial Fair Play sanctions, even if, should Falcao's loan move from Monaco become permanent next summer, their transfer spend goes beyond £200m.

With only two points from their opening three Premier League games, in addition to a shock Capital One Cup defeat by MK Dons, Van Gaal's reign has not started well.

However, Woodward expects much better, at least in terms of United's revenue projection of between £385m and £395m next year.

"We assume third place (Premier League finish minimum) in our budgets including next season," said Woodward.

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TOP NEWS Israeli troops kill Palestinian during West Bank raid

RAMALLAH West Bank (Reuters) - Israeli troops shot and killed a Palestinian on Wednesday during a raid on a West Bank refugee camp, Palestinian medics and the Israeli military said.



The soldiers, seeking to detain a Hamas militant, were confronted by around 50 Palestinians who hurled stones, petrol bombs and burning tires at them, an Israeli military spokeswoman said.



Israel and Hamas, the Islamist militant group which dominates Gaza, fought a seven-week war in July and August.



The medics named the dead man as 22-year-old Issa al Qitri, and said he had been shot in the heart in al-Amari camp near the city of Ramallah.



The Israeli military spokeswoman said he was shot while trying to throw an explosive device at the soldiers.



Palestinians want the West Bank, the Gaza Strip and East Jerusalem for a future state. Peace talks with Israel, which captured those territories in the 1967 Middle East war, broke down in April.



(Reporting by Ali Sawafta; Writing by Maayan Lubell; Editing by Jeffrey Heller and John Stonestreet)





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TECHNOLOGY Sony online TV service to carry 22 Viacom channels

LOS ANGELES (Reuters) - Sony Corp secured the rights to carry 22 Viacom Inc channels, including Comedy Central and MTV, on its planned cloud-based television service, a step forward for its plans to compete with cable and satellite offerings.



The Viacom networks will be available when the new service launches, the companies said in a statement on Wednesday. Customers also will have access to on-demand programming from Viacom.



Sony will provide more details about the service "in the near future," the statement said.



It is the first time Viacom has agreed to provide its networks for an Internet-based live TV and video on demand service, the companies said.



Sony announced its intention to create a web-based video service at the Consumer Electronics Show in Las Vegas earlier this year. Subscribers will be able to access content on the more than 75 million Internet-enabled Sony devices in the United States, according to the statement.



Viacom's channels, which also include Nickelodeon and BET, have a 25.9 percent market share among viewers of basic cable ages 2 to 34, the statement said.



(Reporting by Lisa Richwine and Ronald Grover; editing by G Crosse)

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TOP NEWS U.S. wholesale stocks barely rise; third-quarter growth estimates cut

WASHINGTON (Reuters) - U.S. wholesale inventories barely rose in July, suggesting a slower pace of stock accumulation at the start of the third quarter that prompted economists to trim growth estimates.

The Commerce Department said on Wednesday wholesale inventories edged up 0.1 percent, the smallest rise since July of last year, after a 0.2 percent gain in June.

Inventories are a key component of gross domestic product changes. The component that goes into the calculation of GDP - wholesale stocks excluding autos - was flat.

The rise in overall stocks at wholesalers in July was well below the 0.5 percent increase that Wall Street had anticipated, leading some economists to lower their GDP growth estimates for the July-September quarter.

Barclays cut its third-quarter growth estimate by two-tenths of a percentage point to a 2.5 percent annual rate. Action Economics lowered its forecast to a 2.8 percent pace from 3.0 percent.

A report last week showed stocks of manufactured goods at factories rose only 0.1 percent in July. Retail inventory data for July, due to be released on Friday, will shed more light on the state of restocking early in the third quarter.

Inventories added 1.4 percentage points to GDP growth in the second quarter. The slow pace of inventory accumulation, however, bodes well for fourth-quarter growth.

"While there is very little information about fourth-quarter growth available at this point, a more modest inventory accumulation in the third quarter is a positive development for fourth-quarter GDP, all else equal," said Daniel Silver, an economist at JPMorgan in New York.

Wholesale inventories in July were held back by declines in stocks of farm products, chemicals, furniture, professional equipment, petroleum, paper and metals. Auto inventories increased 1.0 percent in July after declining 0.2 percent in June.

Sales at wholesalers rose 0.7 percent in July after climbing 0.4 percent in June.

At July's sales pace it would take 1.16 months to clear shelves, the lowest since December 2013 and down from 1.17 months in June.

(Reporting by Lucia Mutikani; Editing by Paul Simao)



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TECHNOLOGY EU's Oettinger says Google's market power can be limited

BERLIN (Reuters) - The European Union's new digital economy commissioner, Germany's Guenther Oettinger, said on Wednesday that Google's market power could be limited, adding that he would work to ensure that the search engine's services preserve neutrality and objectivity.



Oettinger also told reporters in Brussels that European telecoms companies tended to be at the lower end of the global spectrum, meaning EU competition policy needed to open up to suggestions from industry.



(Reporting by Tom Koerkemeier in Brussels; Writing by Michelle Martin in Berlin; Editing by Stephen Brown)





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TECHNOLOGY EU's Almunia says won't finish Google probe before end-October

WASHINGTON (Reuters) - European Union regulators will not finish a four-year investigation into Google by the end of October, the bloc's outgoing antitrust chief said on Wednesday.



European Competition Commissioner Joaquin Almunia said this week he would extract more concessions from the world's most popular Internet search engine after extremely negative feedback from rivals such as Microsoft to Google's third proposal to end the EU probe.



"For sure this will not be concluded before the end of October," Almunia told a conference organized by Georgetown University on Wednesday. He is scheduled to leave office next month and will be succeeded by former Danish economy minister Margrethe Vestager.



Google spokesman Al Verney said: "We continue to work with the European Commission to resolve the concerns they have raised."



Google's rivals across Europe, which have accused Google of squeezing them out in online search results and making it difficult for advertisers to switch to rival platforms, welcomed Almunia's comments that the investigation would continue until after he leaves.



"The new Competition Commissioner-designate should issue a statement of objections and undertake a process that enables Google to defend itself, but to do so in an open way that enables complainants to see and address Google's defenses," said lawyer Thomas Vinje of technology lobby group FairSearch.



Five of the lobby group's members - Microsoft, price comparison sites Foundem and Twenga, online travel site Expedia and TripAdvisor - have taken their grievances to the Commission.



(Reporting by Diane Bartz, writing by Foo Yun Chee; editing by Susan Thomas)





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TECHNOLOGY U.S. court revives Microsoft co-founder's patent suit vs tech companies

(Reuters) - A U.S. appeals court on Wednesday revived part of a patent lawsuit brought by Microsoft co-founder Paul Allen against AOL, Apple, Google and Yahoo, saying a lower court incorrectly found that the tech companies didn't infringe one of its patents.



The patent, held by Allen's Interval Licensing, relates to the ubiquitous pop-ups that computer users routinely see while surfing the Web or shopping online.



The Court of Appeals for the Federal Circuit said that Chief Judge Marsha Pechman of the federal district court in Seattle had made an "erroneous" interpretation of the patent in 2013 and it sent the case back to her for further hearings.



At the same time, Circuit Judge Raymond Chen agreed with Pechman for invalidating certain claims made over the same Interval patent, and a second one, declaring them too ambiguous.



Interval Licensing is the patent-licensing arm of a Silicon Valley research entity that Allen financed, Interval Research Corp, which shut down in 2000.



Interval Licensing sued the tech companies in 2010 for allegedly infringing four of its patents, although only two became the subject of the appeal. It said they infringed the patents through products and software that use pop-up notifications, court documents said.



Attorneys for Interval could not immediately be reached for comment. Nor could attorneys for the defendants.



Allen and partner David Liddle founded Interval Research in 1992. It employed over 110 scientists and engineers and was granted 300 patents during its existence, according to court documents.



The case is Interval Licensing v. Aol Inc, Apple Inc, Google Inc, and Yahoo! Inc, U.s. Court of Appeals for the Federal Circuit, Nos, 2013-1282, -1283, -1284 and -1285.



(Reporting By Andrew Chung' editing by Andrew Hay)





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TOP NEWS Ukraine says Russia withdrawing forces from east, sees boost for peace

KIEV (Reuters) - Ukraine's president said on Wednesday Russia had removed the bulk of its forces from his country, raising hopes for a peace drive now underway after five months of conflict in which more than 3,000 people have been killed.

Moscow denies sending troops into eastern Ukraine to support pro-Russian rebels battling Ukrainian forces, despite what Kiev and its Western backers say is overwhelming evidence to the contrary. Moscow also denies arming the separatists.

President Petro Poroshenko told a televised cabinet meeting Ukraine would remain a sovereign, united country under the terms of a peace roadmap approved last Friday, but said parts of the east under rebel control would get special status.

"According to the latest information I have received from our intelligence, 70 percent of Russian troops have been moved back across the border," he said. "This further strengthens our hope that the peace initiatives have good prospects."

However, Poroshenko said the ceasefire was not proving easy to maintain because "terrorists" were constantly trying to provoke Kiev's forces.

Ukraine's military recorded at least six violations of the ceasefire overnight but said there were no casualties. Five servicemen have been killed during the ceasefire, Ukraine says. A civilian was also killed at the weekend during shelling of the eastern port of Mariupol on the Sea of Azov in eastern Ukraine.

Poroshenko said Ukraine was regrouping its forces in eastern Ukraine, not in preparation for a new offensive against the rebels, as the separatists themselves have suggested, but in order to defend territory from possible attack.

The Kremlin said Russian President Vladimir Putin and Poroshenko were broadly satisfied with how the ceasefire, in place for nearly five days, was holding in Ukraine. The two leaders spoke by phone on Tuesday for the second time this week.

OLIVE BRANCH

In his televised remarks, Poroshenko offered the rebels an olive branch by saying he would propose a bill next week offering "special status" to parts of the Donetsk and Luhansk regions of eastern Ukraine they now control.

But he was adamant in rejecting the separatists' demands for full independence for their regions and the kind of radical "federalization" favored by Russia.

"The Minsk protocol envisages the restoration and preservation of Ukrainian sovereignty on all the territory of the Donbass (in eastern Ukraine), including that controlled by the fighters," Poroshenko said.

City authorities in Mariupol, a key frontline in the conflict, announced on Wednesday tough new security measures including a night-time curfew to help control rebel movements.

Underlining the complexity of the conflict, armed Chechen fighters in the eastern city of Dnipropetrovsk told Reuters they had come to Ukraine to take revenge on "Russian invaders" who they said had destroyed their own North Caucasus homeland.

"They (the Russians) took everything from us, I had to bury all my relatives, my daughter ... We are here now on a mission to save Ukraine," said their commander, Isa Munayev, who said he now had a Danish passport.

Russia waged two wars in the 1990s against separatists in Chechnya, a small, mainly Muslim republic in the North Caucasus. But other Chechens, loyal to the region's current pro-Moscow ruler, are now fighting in Ukraine on the rebels' side

The conflict in Ukraine has plunged relations between Russia and the West to their lowest point since the Cold War.

Putin accused NATO on Wednesday of using the Ukraine crisis to "resuscitate itself". He also signed a decree taking direct charge of a commission that oversees Russia's defense industry as Moscow tries to reduce reliance on Western equipment.

At a summit last week in Wales, NATO pledged support for non-member Ukraine in its efforts to tackle the separatist rebellion and announced plans to beef up the defense of alliance members in eastern Europe, including the Baltic republics.

The European Union and United States have imposed economic sanctions against Russia over its role in Ukraine, prompting Moscow to retaliate by banning most Western food imports.

The EU has prepared another wave of sanctions targeting Russia's banking and energy sectors but has held off implementing them to see whether the ceasefire holds.

German Chancellor Angela Merkel, the EU's most powerful leader, said in Berlin that the 28-nation bloc should go ahead with the new sanctions, adding it could always suspend them later if there was progress towards a durable peace in Ukraine.

Poroshenko signed a law on Wednesday allowing Ukraine to impose its own sanctions against Russian firms and individuals deemed to be backing the separatists in eastern Ukraine.

In Prague, the Organization for Security and Cooperation in Europe (OSCE), which is monitoring the ceasefire, said it would be reasonable to allow more time for the peace process before imposing more sanctions against Russia.

Didier Burkhalter, who is president of Switzerland, said the OSCE would soon deploy drones to monitor the ceasefire.

Human rights group Amnesty International said in Moscow it had documented evidence of war crimes by both sides and also repeated criticism of Russia's role in the conflict.

(Additional reporting by Gabriela Baczynska in Dnipropetrovsk, Aleksandar Vasovic in Mariupol, Reuters bureaux in Moscow, Prague and Berlin; Writing by Gareth Jones; Editing by Ralph Boulton)



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TECHNOLOGY iPhone 6 and Apple Watch seen boosting NFC technology

FRANKFURT (Reuters) - Apple Inc's move into mobile payments, announced on Tuesday with the launch of its new iPhone 6 phones and the Apple Watch, is expected to give a boost to the wireless technology behind it, called near-field communications (NFC), analysts and makers of the technology say.

All the new Apple devices will come equipped to operate its new payments service "Apple Pay", which launches in the United States next month and allows users to pay for items in stores by tapping their phone on contactless card payment terminals instead of the underlying credit or debit card.

For Apple Pay to work the new devices come with a "secure element" chip and a near-field communications, or NFC, antenna.

The NFC segment is dominated by NXP Semiconductors, which invented the technology with Sony. Qualcomm, Broadcom, MediaTek and ST Microelectronics are its main competitors.

"NXP Semiconductors definitely will be happy with this development," said Juniper analyst Windsor Holden.

Shares in NXP Semiconductors have been hovering around all-time highs in anticipation of Apple's move into mobile payment.

Asked whether NXP supplies Apple with its NFC chips for the new iPhone, the company declined to comment. Apple suppliers are sworn to secrecy.

NFC technology has been around for more than a decade but so far hasn't taken off widely, even though it is seen as a safe method of making mobile payments, as the wireless technology only works when two devices are brought close together, which makes interference or eavesdropping from outside almost impossible.

With Apple Pay an additional layer of security is provided with use of the iPhone device protected by Apple's Touch ID fingerprint scanner.

But retailers have been reluctant to invest in the necessary scanning and tagging infrastructure, limiting its scope to small-scale ventures like one between Starbucks, Orange, Samsung and Barclays in Britain.

HALO EFFECT

Analysts at Gartner estimate the value of mobile payments with NFC will rise to almost $22 billion by 2016 - still less than 5 percent of a global payments market dominated by SMS text messaging - from less than $5 billion last year.

One of the niches where it has been successful is in gaming, where for instance Activision Blizzard uses it to connect physical action figures to consoles like Microsoft's Xbox, Sony's PlayStation and Nintendo's Wii.

Juniper's Holden expects that Apple will now introduce mobile payments to a wider audience, creating a "halo effect".

Google's NFC-based mobile payment system, Google Wallet, was also expected to give a crucial boost to the market when it was introduced in 2011.

But with Apple Pay's first use made easier, if desired, by connection to what it says amounts to "hundreds of millions" of credit and debit cards already stored in users' iTunes accounts, along with its partnerships with household retail names in the United States like McDonald's, Disney and Walgreen, who are needed to provide the payment terminals, Apple may succeed where others have failed, said analysts.

"If consumers start using NFC for proximity payments then merchants will be more prepared to invest in it, a key factor that has held NFC back," said analyst Eden Zoller at Ovum.

Holden expects the segment "if not to soar, then at least to take to the air, rather than just flap around rather pitiably as was the case in previous years".

Germany's Wirecard, which makes electronic payment technology, said on Wednesday it saw the Apple Pay announcement as a strong additional push for mobile payments and NFC.

But analysts at Warburg Research cautioned that it may take a while in certain large markets like Germany, where only about 30,000 out of a total of 800,000 retail payment points can take NFC payments.

"It will take some time before penetration in Germany is substantially increased," said analyst Jochen Reichert, who has a "buy" rating on shares in Wirecard.

(story corrects syntax in paragraph 15)

(Editing by Greg Mahlich)



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TOP NEWS U.N.'s Ban urges Assad to seek political solution to Syria crisis

ABU DHABI (Reuters) - U.N. Secretary-General Ban Ki-moon urged President Bashar al-Assad to seek a political solution to Syria's war, saying this would help international efforts against Islamic State militants in Syria and Iraq, al-Hayat newspaper reported on Wednesday.

In an interview with the pan-Arab daily, Ban said years of war between Assad's forces and armed rebel groups had allowed militants such as Islamic State to take root in the region.

Asked whether Assad would have any role to play in an international coalition being assembled to fight Islamic State in Syria and Iraq, the U.N. chief said Assad could contribute by working politically towards an end to the war in his country.

"He (Assad) can play a role through ending the crisis as soon as possible and engaging in political dialogue," the London-based, Saudi-owned newspaper quoted him as saying.

Islamic State, a militarily-powerful al Qaeda offshoot that wants to create a jihadist hub in the heart of the Arab world, has made rapid territorial gains in both Iraq and Syria in recent months that have alarmed regional and Western powers.

In July, when Assad was sworn in for a new term as president, he vowed to recover all Syria from Islamist insurgents and dismissed the Syrian opposition abroad as traitors. But he also said he would be willing to work with the country's internal opposition, without giving details.

The United States has carried out weeks of air strikes against Islamic State targets in Iraq, but the outlook for U.S. air raids in Syria is much less clear.

While Iraq's government welcomed the role of U.S. warplanes to attack the militants, Assad has warned that any strikes conducted without his country's permission would be considered an act of aggression, potentially plunging any U.S.-led coalition into a broader conflict with Syria.

OPPOSING SIDES

Asked whether any armed outside intervention in Syria would need the blessing of Assad's government, Ban said: "I know that some leading countries are trying to discuss the matter, and the position of the U.N. will be declared at the suitable time.

"But it is important that the international community is united and shows strong support for any action that has to be taken to root out this terrorism."

Assad's military has stepped up air strikes over the last three months against the group, which controls about a third of Syria's territory, much of it desert in the north and east.

International and regional powers have backed opposing sides in the civil war, with Russia and Iran supporting Assad and Western powers and Gulf Arab states largely backing the rebels.

Asked whether the formation of a multinational coalition to fight Islamic State would involve Russia, Ban said this was "up to Russia to decide".

Ban also said a U.N. Security Council decision to support military action against Islamic State would be "an excellent and an appropriate way" to deal with the group but that its brutal killings were why, "some countries took some military action," in a reference to U.S. air strikes in Iraq.

Saudi Arabia is to host talks with the United States, Egypt, Jordan, Turkey and fellow Gulf Arab states on Thursday in Jeddah in an apparent attempt to support international efforts to tackle crises in Iraq and Syria.

U.S. President Barack Obama is expected on Wednesday to outline a plan to deal with Islamic State. U.S. Secretary of State John Kerry arrived in Baghdad as he began a tour of the Middle East to build military, political and financial support to defeat the militants.

(Reporting By Maha El Dahan, Editing by William Maclean and Janet Lawrence)



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TOP NEWS Kerry in Iraq backs government, says Baghdad a partner against Islamic State

BAGHDAD (Reuters) - U.S. Secretary of State John Kerry on Wednesday endorsed Iraqi Prime Minister Haider al-Abadi's plans to mend Baghdad's relations with Sunnis and Kurds, and said Iraq was a partner in the fight against Islamic State militants.

Kerry, on a tour of the Middle East to build military, political and financial support to defeat the militants controlling parts of Iraq and Syria, said: "We all have an interest in supporting the new government of Iraq."

"The coalition that is at the heart of our global strategy I assure you will continue to grow and deepen in the days ahead ... because the United States and the world will simply not stand by to watch as ISIL's evil spreads." he said, using an alternative acronym for Islamic State.

"A new and inclusive Iraqi government has to be the engine of our global strategy against ISIL. Now the Iraqi parliament has approved a new cabinet with new leaders, with representation from all Iraqi communities, it's full steam ahead."

Kerry's visit comes hours before a speech in which Obama will try to rally Americans behind another war in a region he has long sought to leave, backed by what Washington hopes will be a coalition of NATO and Gulf Arab allies committed to a campaign that could stretch beyond the end of Obama's term in 2016.

"When the world hears from President Obama this evening, he will lay out with great specificity each component of a broad strategy of how to deal with ISIL," Kerry said.

Kerry told Abadi he was encouraged by his plans for "reconstituting" the military and his commitment to political reforms reaching out to all of Iraq's religious and ethnic communities.

Abadi formed his government on Monday in what was billed as a break from the more abrasive style of his predecessor Nuri al-Maliki, whose policies were blamed by many Iraqis for fuelling sectarianism and pushing the country to the brink of collapse.

Islamic State fighters seized large chunks of Iraq's north and west this year, welcomed by many of the Sunni Muslim minority, who blamed the government for targeting them with indiscriminate arrests and discriminatory policies.

Abadi appealed to the international community to help Iraq fight Islamic State, urging them "to act immediately to stop the spread of this cancer."

Abadi faces multiple crises, from the need to convince the Sunnis they should stand with Baghdad against Islamic State to persuading minority Kurds not to break away and convincing his own majority Shi'ites he can protect them from Sunni hardliners.

Kerry highlighted Abadi's readiness "to move forward rapidly on the oil agreements necessary for the Kurds, (and) on the representation of Sunnis in government."

In a sign of the eagerness among Iraq's political elite for a fresh start, new Parliament Speaker Selim al-Jubouri, a Sunni, told Kerry: "We are ... hopeful that we will be able to defeat terrorist organizations and establish democracy in Iraq."

ENTRENCHED SECTARIAN TENSIONS

Unlike his predecessor, Abadi enjoys the support of nearly all of Iraq's major political groups, and the two most influential outside powers, Iran and the United States. U.S. officials hope he will present a unified front to weaken Islamic State, which has seized a third of both Iraq and Syria.

But it will be hard to placate all the forces in Iraq. On Wednesday, cleric Moqtada al-Sadr, head of a powerful Shi'ite movement, said Iraq should not cooperate with "occupiers", a reference to the United States. Sadr's opinions hold sway over tens of thousands of militants.

Three car bombs exploded on Wednesday in a Shi'ite neighborhood in eastern Baghdad, killing nine people and wounding 29, a police officer said.

While it is unclear what steps will be taken to strengthen the Iraqi army after its collapse in the face of an Islamic State onslaught in June, the senior U.S. official said tentative plans for a new National Guard unit, announced by Abadi on Monday, were intended to deprive Islamic State of safe havens by handing over security to the provinces.

Abadi in parliament on Monday described the proposed National Guards units as a means to absorb the Shi'ite militia groups now taking up the slack for a badly depleted army in fighting Islamic State. Iraqi and U.S. officials have said the units would be a mechanism for Sunni Muslims to defend their provinces against Islamic State. Kerry also touted the idea during his visit, saying he expected Abadi to take up the initiative in next week's cabinet meeting.

Baghdad has lost control of the main Sunni provinces and the central government has yet to convince Sunnis it can be trusted.

Sectarian tensions appeared as entrenched as ever, possibly worsened by a month of U.S. air strikes on Sunni jihadists.

While Kurdish and Shi'ite fighters have regained ground, Sunni Muslims who fled the violence near the northern town of Amerli are being prevented from returning home and some have had their houses pillaged and torched. Sunni Arabs are also feeling a backlash in villages where they used to live alongside Kurds, who accuse them of collaborating with Islamic State.

On Wednesday, Shi'ite militia north of Baghdad forced dozens of Sunni families from their homes during an offensive, stealing possessions and burning houses, a Shi'ite policeman and government source told Reuters, asking for anonymity to allow them to report on the offensive, which they said they opposed.

While the U.S. official praised weeks of U.S. air strikes as "highly precise" and "strategically effective", he acknowledged much work lay ahead. "It's going to be a very difficult, long road to get there," he said. Any campaign to defeat Islamic State could take one to three years, Kerry said.

Kerry will meet Jordan's King Abdullah later on Wednesday, and travel on Thursday to Saudi Arabia for talks that will include Egypt, Turkey, Jordan and the Gulf Cooperation Council (GCC), which comprises Saudi Arabia, Bahrain, the United Arab Emirates, Kuwait, Oman and Qatar.

Saudi Arabia is unnerved by the rapid advance of Islamic State and fears it could radicalize some of its own citizens. Arab League foreign ministers agreed on Sunday to take all necessary measures to confront Islamic State.

In Jordan, Kerry is expected to receive requests for extra military aid, including helicopters and border security equipment, along with part of the $500 million the Obama administration has proposed to accelerate training of moderate Syrian rebels, a Jordanian official told Reuters.

Jordan is considered a top choice to host the training of the rebels due to its close ties with Washington, proximity to Syria and more than 600,000 Syrian refugees. But Jordan fears retaliation from Syria if it is used for overt training.

French President Francois Hollande will travel to Baghdad on Friday ahead of a conference of regional and international powers in Paris on Monday to coordinate efforts to tackle Islamic State.

After a meeting of EU defense ministers in Milan on Wednesday, Italian Defense Minister Roberta Pinotti told reporters: "We have to try to support and sustain the local protagonists who may be able to stop and contain Islamic State in those areas. The Americans have chosen to carry out air strikes. We haven't yet chosen that.

"We do have refueling aircraft ... We might have valued assets there. We have training capabilities as well, we can provide training services. We can look at what we might be providing," she said, according to an interpreter.

The Dutch government said it was in discussion with the United States about making a contribution to a force to counter Islamic State.

(Additional reporting by Oliver Holmes in Baghdad, Isabel Coles in Arbil, Suleiman Al-Khalidi in Amman, John Irish in Paris, Adrian Croft in Milan and Angus McDowall in Riyadh; Editing by Janet Lawrence)



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TENNIS NEWS: Marin Cilic can win more Grand Slams - Goran Ivanisevic

Marin Cilic embraces Goran IvanisevicMarin Cilic's US Open victory could be the first of many Grand Slam titles, says his coach Goran Ivanisevic. 

Cilic, 25, beat Kei Nishikori 6-3 6-3 6-3 to become Croatia's first major champion since Ivanisevic at Wimbledon in 2001.

"He can win more Grand Slams," Ivanisevic, who began working with Cilic last year, told BBC Sport.

"It's unbelievable, it's amazing. I'm so proud of him, that he was able to play the final like this."
World number 16 Cilic completed a superb run at Flushing Meadows that saw him win his last 10 sets, including straight-sets victories over sixth seed Tomas Berdych, five-time champion Roger Federer and 10th seed Nishikori.

BBC Sport tennis correspondent Russell Fuller

"This time last year Marin Cilic was holed up in Croatia, serving the last few months of his doping ban and adding a few more revs to his serve. The burning sense of injustice he still feels has driven him to an achievement which had appeared beyond him; he played so calmly and consistently for most of the match - as if the trophy was his destiny.

"Coach Goran Ivanisevic has also played a major part, adding more shots to his repertoire and inflating his self-belief. The faster courts at the US Open played to his strengths, and he will enjoy Australia too... when the Grand Slam year restarts."

He is the lowest-ranked player to win a Grand Slam since Argentina's Gaston Gaudio won the 2004 French Open as the world number 44.

Arguably most impressive was the way Cilic kept his nerve and maintained his form against another Grand Slam final debutant in Nishikori, with such a huge prize on offer.

Play media

US Open win has changed my life - Cilic
"I said whoever was able to overcome the nerves is going to win the tournament and that's what happened," said Ivanisevic.

"After the first couple of games there was only one player on the court and that was Marin. Nishikori could not cope with him in any aspect of tennis.

"The last 10 sets were the 10 best sets of his life. After this, he doesn't need to play any more sets!"
Cilic did not play at last year's US Open because he was serving a ban, reduced on appeal to four months, for taking a banned stimulant.

The player claimed he did so inadvertently, but during his absence from the game he teamed up Ivanisevic and began working to improve his serve and his forehand in particular.

Marin Cilic's path to victory

First round: Beat Marcos Baghdatis (Cyp) 6-3 3-1 - retired
Second round: Beat Illya Marchenko (Ukr) 7-6 (7-2) 6-2 6-4
Third round: Beat Kevin Anderson (SA x18) 6-3 3-6 6-3 6-4
Fourth round: Beat Gilles Simon (Fra x26) 5-7 7-6 (7-3) 6-4 3-6 6-3
Quarter-finals: Beat Tomas Berdych (Cze x6) 6-2 6-4 7-6 (7-4)
Semi-finals: Beat Roger Federer (Swi x2) 6-3 6-4 6-4
Final: Beat Kei Nishikori (Jpn x10) 6-3 6-3 6-3

"This is his second chance," said Ivanisevic. "He took it, he deserves it and now anything can happen. This guy, when he plays like this - this is real tennis.

"It was not an easy year and it came in the perfect, perfect moment. From this he can only go up and up. His life is never going to be the same again.

"He's the nicest guy and deserves it. And as a coach - now I can resign! I won a Grand Slam as a coach."

Cilic will climb from 16th to ninth in the world rankings and has all but guaranteed his place at the ATP World Tour Finals in November.

On Ivanisevic, he said: "Goran is a great guy. You get to know him and he has a huge heart. Anyone who asks him for help, he's going to help in one way or the other. That's the way he is."

Asked about Ivanisevic's famous claim after he won Wimbledon that there were "three Gorans", Cilic replied: "With personalities, I think he has only one, and that's with a very big heart."

TRANSFER NEWS: All late transfer signing of players 2014

Radamel Falcao 

Transfer deals - September 2014

The summer transfer window closed at 23:00 BST on 1 September.
Biggest signing this window by British club: Angel Di Maria - Real Madrid to Manchester United for £59.7m.

Busiest clubs this summer: Blackpool, Shrewsbury and Crawley Town have signed 17 players.
Busiest Premier League club this summer: West Brom have signed 11 players.

10 SEPTEMBER

Tyrone Barnett [Peterborough - Oxford] Loan
Owen Garvan [Crystal Palace - Bolton] Loan

09 SEPTEMBER

Keith Keane [Preston - Crawley] Loan
George Swan [unattached - Wolves]
Josh Wright [Millwall - Crawley] Loan

05 SEPTEMBER

Matthew Gould [unattached - Cheltenham]
Dominique Malonga [Cesena - Hibernian] Free

04 SEPTEMBER

John Guidetti [Man City - Celtic] Loan
Owain Tudur Jones [Hibernian - Falkirk] Free

03 SEPTEMBER

Andrew Johnson [unattached - Crystal Palace]

02 SEPTEMBER

Tom Cleverley [Man Utd - Aston Villa] Loan
David Henen [Olympiakos - Everton] Loan
Byron Lawrence [Ipswich - Colchester] Free
Angel Martinez [Blackpool - Millwall] Free
Drissa Traore [Le Havre - Notts County] Free
Transfer deadline day (all times BST)
01:31 - Radamel Falcao [Monaco - Man Utd] Loan
01:30 - Tom Lawrence [Man Utd - Leicester] Undisclosed
01:30 - Nick Powell [Man Utd - Leicester] Loan
01:10 - Michael Keane [Man Utd - Burnley] Loan
00:58 - Danny Welbeck [Man Utd - Arsenal] £16m
00:50 - Hatem Ben Arfa [Newcastle - Hull] Loan

01 SEPTEMBER

23:50 - Sadio Mane [Red Bull Salzburg - Southampton] £10m
23:33 - Glenn Murray [Crystal Palace - Reading] Loan
23:31 - Frank Nouble [Ipswich - Coventry] Loan
23:30 - Kevin Doyle [Wolves - Crystal Palace] Loan
23:28 - Toby Alderweireld [Atletico Madrid - Southampton] Loan
23:26 - Krisztian Adorjan  [Liverpool - Novara Calcio] Undisclosed
23:19 - Louis Thompson [Norwich - Swindon] Loan
23:19 - Louis Thompson [Swindon - Norwich] Undisclosed
23:17 - Seb Hines [Middlesbrough - Coventry] Loan
23:11 - Jos Hooiveld [Southampton - Norwich] Loan
23:09 - Niko Kranjcar [Dynamo Kiev - QPR] Loan
23:08 - Peter Brezovan [Portsmouth - Tranmere] Free
23:05 - Alvaro Negredo [Man City - Valencia] Loan
23:01 - Luciano Becchio [Norwich - Rotherham] Loan
23:00 - Ryan Tunnicliffe [Fulham - Blackburn] Loan
22:58 - Dominic Poleon [Leeds - Oldham] Undisclosed
22:55 - Jack Stephens [Southampton - Swindon] Loan
22:50 - Matt Smith [Leeds - Fulham] Undisclosed
22:49 - Morgan Amalfitano [Marseille - West Ham] Undisclosed
22:46 - Emyr Huws [Man City - Wigan] Undisclosed
22:46 - Jason Steele [Middlesbrough - Blackburn] Loan
22:45 - Michael Tidser [Rotherham - Oldham] Loan
22:44 - Jamal Blackman [Chelsea - Middlesbrough] Loan
22:31 - Oussama Assaidi [Liverpool - Stoke] Loan
22:31 - Jonson Clarke-Harris [Oldham - Rotherham] Undisclosed
22:30 - Gaston Ramirez [Southampton - Hull] Loan
22:26 - Mapou Yanga-Mbiwa [Newcastle - Roma] Loan
22:15 - Mark Hudson [Cardiff - Huddersfield] Undisclosed
22:15 - Sandro [Tottenham - QPR] £6m
22:11 - Stefan Scepovic [Sporting Gijon - Celtic] £2.3m
22:06 - Danny Gabbidon [unattached - Cardiff]
22:03 - Micah Richards [Man City - Fiorentina] Loan
21:47 - Luke James [Hartlepool - Peterborough] Undisclosed
21:41 - Rakish Bingham [Wigan - Mansfield] Free
21:36 - Souleymane Doukara [Catania - Leeds] Undisclosed
21:33 - James McArthur [Wigan - Crystal Palace] £7m
21:30 - Ryan Cresswell [Fleetwood - Northampton] Undisclosed
21:14 - Ryo Miyaichi [Arsenal - FC Twente] Loan
21:14 - Ignasi Miquel [Arsenal - Norwich] Undisclosed
21:02 - Alex Kacaniklic [Fulham - Copenhagen] Loan
21:02 - Ryan Bird [Portsmouth - Cambridge] Free
20:52 - Sam Clucas [Mansfield - Chesterfield] Undisclosed
20:43 - William Kvist [Stuttgart - Wigan] Free
20:35 - Zeki Fryers [Tottenham - Crystal Palace] Undisclosed
20:20 - Betinho [Sporting Lisbon - Brentford] Loan
20:00 - Kris Scott [Swansea - Leicester] Free
19:46 - Daley Blind [Ajax - Man Utd] £13.8m
19:29 - Bruno Ecuele Manga [Lorient - Cardiff] Fee in excess of £5m
19:27 - Saphir Taider [Inter Milan - Sassuolo] Loan
19:15 - Ricardo Alvarez [Inter Milan - Sunderland] Loan
18:51 - Mohamed Diame [West Ham - Hull] Undisclosed
18:36 - Andy Procter [Bury - Accrington] Free
18:30 - Sebastian Coates [Liverpool - Sunderland] Loan
18:30 - Jack O'Connell [Blackburn - Rochdale] Loan
17:45 - Andrew Surman [Norwich - Bournemouth] Undisclosed
17:37 - Brian Montenegro [Nacional - Leeds] Loan
17:34 - Lewis Holtby [Tottenham - Hamburg] Loan
17:30 - George Donnelly [Rochdale - Tranmere] Undisclosed
17:26 - Benjamin Stambouli [Montpellier - Tottenham] Undisclosed
17:08 - Royston Drenthe [Reading - Sheff Wed] Loan
17:00 - Ryan Watson [Leicester - Northampton] Loan
17:00 - Jose Canas [Swansea - Espanyol] Free
16:22 - Achille Campion [Norrby IF - Port Vale] Loan
15:58 - Abel Hernandez [Palermo - Hull] £10m
15:46 - Nathaniel Chalobah [Chelsea - Burnley] Loan
15:01 - Alex Nicholls [Northampton - Exeter] Loan
15:00 - Jonathan Obika [Tottenham - Swindon] Undisclosed
14:54 - Alex Bray [Swansea - Plymouth] Loan
14:45 - Andy Delort [FC Tours - Wigan] Undisclosed
14:21 - Holmbert Fridjonsson [Celtic - Brondy] Loan
14:16 - Adam Forshaw [Brentford - Wigan] Undisclosed
14:16 - Vitalijs Maksimenko [Brighton - VVV-Venlo] Loan
14:08 - Jelle Vossen [Genk - Middlesbrough] Loan
13:58 - Jordan Cranston [Nuneaton - Notts County] Free
13:56 - Michael Gardyne [Dundee United - Ross County] Loan
13:52 - Dylan McGeouch [Celtic - Hibernian] Loan
13:38 - Nathan Eccleston [Coventry - Partick Thistle] Free
13:20 - Javier Hernandez [Man Utd - Real Madrid] Loan
13:08 - Jack Price [Wolves - Yeovil] Loan
13:00 - Stuart Beavon [Preston - Burton] Undisclosed
12:58 - Marco van Ginkel [Chelsea - AC Milan] Loan
12:37 - Modu Barrow [Ostersunds - Swansea] Undisclosed
11:55 - Tom Koblenz [Hoffenheim - Derby] Free
11:30 - Shane Duffy [Everton - Blackburn] Undisclosed
11:24 - George Boyd [Hull - Burnley] £3m
10:59 - Yanic Wildschut [Heerenveen - Middlesbrough] Undisclosed
10:13 - Karim El Ahmadi [Aston Villa - Feyenoord] Undisclosed

BUSINESS U.S. regulator would welcome delay of EU clearing rules

WASHINGTON (Reuters) - A top U.S. regulator said on Wednesday he would welcome a delay by the European Union that gave more time to resolve a conflict with Washington over making derivatives markets safer.

Reuters reported last week that the EU is discussing whether to move a deadline by which U.S. clearing houses, which act as go-betweens for buyers and sellers, must meet EU rules when doing business there.

"I am encouraged by that flexibility ... it's very important as we deal with this not to disrupt the market," Tim Massad, the head of the Commodity Futures Trading Commission derivatives regulator, told Reuters in an interview.

At the moment, Europe is sticking to its own rules for U.S. clearing houses rather than exempting them as it plans to do with Japan, Hong Kong and Australia, for example. Brussels has refused to grant similar treatment to the United States as long as the CFTC does not exempt European clearing houses.

The current deadline is December 15, after which new capital requirements kick in, making it prohibitively expensive for European banks to do business with U.S. clearing houses.

"I expected it would be maybe easier to get this done," Massad said. "(It's) an exercise we're going through now. And I'm willing to explore (whether the U.S. can rely on EU rules to a greater extent)."

Swaps are derivatives that were originally designed to protect companies and investors against financial risks. However, their use ballooned in the heady days leading up to the 2007-09 financial crisis when speculators started jumping into the then unregulated market.

They can be packaged into highly complex transactions, and they played a major role during the financial meltdown as insurance firm American International Group Inc (AIG.N) suffered massive losses when risky derivatives bets went sour.

European regulators and the CFTC are cracking down on the market as part of a global agreement that followed the crisis, but have bickered over the supervision of foreign entities.

Some of the U.S. rules for how clearing houses protect customer funds are crucial for the CFTC because they guarantee that clients do not lose their money if a firm goes under, Massad said. But the CFTC could give in where there was "no strong supervisory interest," for instance for non-U.S. clients doing business with these firms in the United States.

The CFTC was still considering exempting foreign clearing houses from the U.S. rules, Massad said, but that would only be valid for large banking clients and not for others such as asset managers. That might not go far enough for Europe, according to a recent letter by an industry group.

That rule would not precede a deal with the EU, Massad said.

"I think we're more focused on working out this immediate issue with Europe," he said.

The CFTC would also soon seek market input on its plans to extend the number of products that need to be cleared, he said. At the moment four types of interest-rate swaps and two kinds of credit default swaps need clearing.

The new products could include interest-rate swaps in other currencies and non-deliverable forwards, he added.

(Reporting by Douwe Miedema. Editing by Andre Grenon)

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BUSINESS Soft bounce in Japan machinery orders leaves doubts on outlook

TOKYO (Reuters) - Japan's core machinery orders rose for a second straight month in July, but analysts said the data failed to dispel some doubts about the strength of business investment that is needed to propel Japan out of the slump caused by April's sales tax hike.

The 3.5 percent rise in core orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, was less than the median estimate of a 4.0 percent increase in a Reuters poll of economists.

That followed a 8.8 percent rise in June and a 19.5 percent drop in May, which was the biggest drop in data going back to 2005.

The data followed a recent run of weak economic indicators that suggest a rebound expected this quarter from April's slump may not prove as strong as originally thought.

Weak readings cloud the prospects of a planned increase in the sales tax in October 2015, while keeping policymakers under pressure to provide fresh stimulus to prop up the economy.

"Some companies are still cautious about demand. I expect the second sales tax hike to happen, but keep an eye out for more stimulus from the government," said Hiroaki Muto, senior economist at Sumitomo Mitsui Asset Management Co.

The core orders were boosted by one big order from a chemicals producer, a government official said, adding that excluding the one-off factor overall growth in July was moderate.

The Cabinet Office data showed orders from manufacturers for new machinery rose 20.3 percent in July - thanks to the big order from a chemicals producer - while those from non-manufacturers fell 4.3 percent.

"The rebound was weak. Manufacturers may be turning cautious about capital spending due to sluggish exports and consumption, and the decline in orders from nonmanufacturers likely reflect weak domestic demand," said Koya Miyamae, senior economist at SMBC Nikko Securities.

The Cabinet Office stuck to its assessment of machinery orders, saying they are "seesawing".

Capital spending holds the key to the success of Prime Minister Shinzo Abe's reflationary policies dubbed Abenomics, which policymakers are counting on to generate a virtuous cycle of growing business output, household income and spending.

Companies held off spending in April-June after boosting investment earlier this year on factors such as upgrading of Windows operating systems. As the temporary factors run their course, analysts expect capital spending will resume picking up due to steady corporate earnings, a well as the need to upgrade aging equipment and manage a labor shortage.

Compared with a year earlier, core orders, which exclude ships and power utilities, rose 1.1 percent in July, versus the expected 0.6 percent rise, the Cabinet Office data showed.

Revised data showed on Monday that Japan's economy shrank an annualized 7.1 percent in April-June as capital spending slid and private consumption took a hit from the sales tax hike. Analysts in a Reuters poll forecast a 3.8 percent bounce this quarter.

The strength of an expected rebound in the current quarter will be crucial to Abe's decision, expected by year-end, on whether to proceed with the scheduled second increase in the sales tax to 10 percent in October 2015.

(Additional reporting by Stanley White; Editing by Eric Meijer)



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HEALTHCARE NEWS: FG to Ban Consumption and Sale of “Kpomo”?

The federal government is reportedly considering banning the sale and consumption of "kpomo" (animal hides and skins).



Kpomo/Ponmo is considered to be a delicacy for many Nigerians.



Akinwunmi Adesina, Minister of Agriculture and Rural Development, reportedly indicated that the ban may be implemented as a means of "curtailing the widespread consumption of hides and skins as Kpomo which ought to be tanned into leather for a very high dollar return to the farmer and Tanneries," Vanguard reports.



Adesina made the announcement during the 3rd joint anniversary of Animal Science Association of Nigeria (ASAN) and Nigeria Institute of Animal Science held at the University of Ibadan.



Photo Credit: www.nurhitoolkit.org

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