When It Comes to Rap Music, Are White Boys Really Doing All the Buying?

Though the music industry has long perpetuated the notion that the overwhelming majority of the buyers of rap music are white males, the truth is the rap industry is not staying afloat on a sea of white male dollars.
Back in 1991, Newsweek did a cover story on gangsta rap that proclaimed 80 percent of hip hop’s audience was white. That article sparked a firestorm of attention, but the public began accepting the number as fact. Adding gasoline to the flame, around the same time Ice-T came out and attributed anything above his usual album sales of 750 thousand to “white kids.”
What can we say about the veracity of the 80 percent claim?
In 2004 Mediamark Research Inc. estimated that closer to 60 percent of rap music consumers were white. While that’s still substantial, it’s much lower than the rumored 80 percent that has been floating around for over twenty years.
Of the approximately 64 million Americans between age 15 and 30, about 73 percent of them are white. So if 60 percent of rap consumers were white in 2004, they represented a significantly lower number than their share of the population—meaning the Blacks and Hispanics in remaining 40 percent were significantly higher than their share of the overall U.S. population.
In others words, whites were underrepresented among rap consumers and Blacks and Hispanics were over-represented.
Have the percentages changed much in the decade since MRI’s estimate? It doesn’t appear as if anyone has undertaken such an investigation. That’s probably because the music industry now is more preoccupied with a different question: Is anyone buying rap—or anything else?
We are in the midst of a catastrophic decline in record sales. Total music sales went down for the first time ever from 2012 to 2013, falling 6.3 percent, according to the Atlantic.
The history of the data collection makes one wonder how in 1991, when there were no devices tracking race in record sales, did they come up with that number of 80 percent? And why were they allowed to release it as fact?
The answer? Media corporations needed a marketing tool to justify ad revenue for Top 40 stations.
Industry experts will remember that in the 80′s and 90′s, so-called “Black” stations weren’t playing rap in regular rotation and if they did it was only on the weekends. Black radio programmers claimed this was because of the effect on their advertisers—when a Black station played just rap it wasn’t long before it went off the airwaves.
Noticing the lack of hip hip on the radio, a lot of Top 40 stations began adding it to their rotation. The difference was these top 40 stations could keep their ad revenue up while playing the same amount, if not more, rap than an urban station. Hip hop was now being included in the Top 40 and making its way to every suburban middle school dance and frat party around the country.
According to hiphopandpolitics.com, advertisers have a very specific  hierarchy of demographics they wish to reach: White males between the ages of 18 and 34 first, then white males between 25-54, white women 25-34, women of color 25-34, followed by white teens and eventually landing on Black males. This is largely due to the assumption that in America white males have the most disposable income.
Buying into the notion that only white kids buy rap music is not only ridiculous, it discredits an entire population.
“I think that we’re playing a game of racial politics when we say that white kids buy most rap music,” says Bakari Kitwana, author of “Why White Kids Love Hip Hop: Wankstas, Wiggas, Wannabes, and the New Reality of Race in America.” “It’s suggesting that the buying power of young African Americans is not as substantial as it is.”
As is evidenced in many other industries that cater to young people, such as clothing, sneakers and video games, Black young people are a potent consumer group. The advertisers who notice this the quickest are being rewarded with consumer loyalty—and noticeable increases in revenue. Just ask Nike.

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Chris Brown Launches Instagram Beef With ‘The Real’ Stars While Struggling to Mature in Media Spotlight

Chris Brown unleashed an expletive-filled rant on Instagram aimed at “The Real” hosts Adrienne Bailon and Tamar Braxton and the virtual tirade seems to serve as a troubling reminder of Brown’s own personal battles.
A “muppet face ass” and a “trout mouth ass b***h” – that’s how the R&B superstar described Braxton and Bailon in an Instagram post as a response to the ladies’ discussion of his relationship with Karrueche Tran.
During Monday’s episode of “The Real,” Chris Brown and his on-again, off-again girlfriend were at the center of yet another discussion about troubled relationships.
The discussion eventually led to Bailon suggesting Tran’s friends encourage the aspiring model to stay with Brown for the fame while Braxton explained that the R&B star is just a young man who is still trying to find his way in the world.
Braxton even went on to compliment Brown on his singing, dancing skills and good looks.
Either way the R&B star took serious offense to the comments and unleashed his virtual rant.
“BRING THAT ASS HERE BOY ADRIENNE BAILON… you ole trout mouth ass b***h,” the rant started. “U tried it. Won’t u the same b***h that was f*****g wit married men…U can’t talk about relationship goals when u don’t even have life goals. Ain’t you a cheetah girl?”
Eventually, Brown switched focus to Braxton and accused the reality star of having plastic surgery.
The Instagram battle comes shortly after Brown gave a rather promising interview on Ebro in the Morning on Hot 97.
During the interview, the R&B star opened up about confronting his demons and dealing with the fact that his past actions always seem to haunt him.
It was back in 2009 that an 18-year-old Brown beat his then-girlfriend Rihanna. Ever since then the star has been in a constant battle with negative publicity and tabloids that still refer to the “New Flame” singer as a “monster” and “woman beater.” At the age of 25, Brown is still maturing and making his fair share of major mistakes along the way.

Source: Instagram, Tamar Braxton

Brown added that while he would love to keep his “skeletons in the closet,” he’s subject to public scrutiny due to his status as an international R&B star.
One of the radio hosts even admitted he knew too many people who have good relationships with the soulful crooner for Brown to be the “demon” he is often portrayed to be.
It’s also important to note that Brown was diagnosed with PTSD and bi-polar disorder back in March and that therapists believe his tumultuous past could have helped trigger both disorders.
Brown eventually deleted the post but has not removed an Instagram video saying he is entitled to his own opinion.
It wasn’t long before Braxton fired back on Instagram saying that she has always been kind to Brown but he should know better than to disrespect women in such a manner.
“Honestly and respectfully I’m VERY sorry if you BOTH were offended about our girl chat,” Braxton wrote in her own post along with a picture of herself sitting beside Bailon. “However you WILL NOT think its ok to come at GROWN women and talk to either myself or @adrienne_bailon as if u have EVER has us each in your bed at ANY point in our lives!…you are only a few years older than my son and I will not tolerate your disrespect when no one was coming for you!!! So the RICH/BLESSED muppet who WAS always VERY nice to you and your girl will continue to work my ass of and make amazing records and positive television…

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Jaden Smith Releases a New Album and Talks about How Time isn’t Real

Taking a note from Beyoncé, in the middle of the night Jaden Smith dropped his new album,” Cool Tapes Vol. 2 (CTV2), through his own app, “Jaden Experience.”
At 11:13 p.m. last night, Smith tweeted, “I’ve worked on this album for two years and Kendall likes it so here,” along with the link to the album.
The “Kendall” he is referring to is his rumored girlfriend, Kendall Jenner of the Kardashian clan.
The album features eight brand new songs, including “Fire,” produced by Christian Rich. “Fire” appeared on Soundcloud earlier in the night.
Smith’s sister Willow also dropped some new music last night, releasing “9,” her collaboration with St. Louis singer Sza.
The full line up for Jaden’s album is as follows:
1. Fire
2. Keep Ya Love
3. Zoned
4. Let it Breathe
5. Young & Reckless
6. Electric
7. PCH
8. Symba
After tweeting the release of his album, the young rapper went on to say how ridiculous he thinks his face looks on his app, tweeting “That’s just funny to me,” under a picture of the app.
The album release comes after the two siblings did their first joint interview with T  Magazine, The New York Times’ style magazine, that was released earlier in the day. Jaden spoke with T about the space he was in when he created CTV2′s prequel.
“At 12, I was just talking about hanging out with girls because that’s pretty much the only thing I was into,” he said. From there the interview went on a deeper and more thought-provoking route. Jaden began to give his thoughts on time.
“It’s proven that how time moves for you depends on where you are in the universe,” the 16-year-old said. “It’s relative to beings and other places. But on the level of being here on earth, if you are aware in a moment, one second can last a year. And if you are unaware, your whole childhood, your whole life can pass by in six seconds. But it’s also such a thing that you can get lost in.”
The two went on to discuss how their voices sound like “chocolate” together and the importance of unlearning the things that modern day education teaches you, before they described what was next on the horizon for them.
“I have a goal to be just the most craziest person of all time,” Jaden said. “And when I say craziest, I mean, like, I want to do like Olympic-level things. I want to be the most durable person on the planet.”

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Stevie Wonder Wows Atlanta Crowd, Goes Off on Gun Violence

There are few voices that can bring people to tears from the mere sound. As the woman behind me wept into her tissue 30 minutes into Stevie Wonder’s Songs in the Key of Life Performance tour, it was clear that Mr. Wonder had one of those voices.
On Saturday night that soulful voice packed Atlanta’s Phillips Arena with people from all races and all walks of life. The electricity of anticipation wafted through the room as soon as you hit the arena.
When the 64-year-old legend finally made his way onto the stage, the applause was deafening. He was escorted by his two young sons and the beautiful India.Arie in a vibrant orange dress paired with a golden head wrap.
Wonder immediately thanked the Atlanta crowd for all his continued success as he recalled that the first plane ride he ever took to perform was from Detroit to Atlanta.
“Every experience started with you,” the Signed, Sealed, Delivered singer stated. “If I don’t know you personally, I know your heart because our hearts are connected.” He then wasted no time as he took his place behind the keys and flawlessly went into “Love’s in Need of Love Today.”
He brought Ms. Arie back out to help him sing “Have a Talk with God” and the combination of both their voices was enough to make the woman from earlier’s tissue soggy once again.
“He’s taking me to the 70s right here!” her friend screamed over her sobbing companion as she snapped to the beat. The rest of the arena seemed to share her sentiments as everyone rose to their feet for “I Wish.”
Wonder took the audience through a bevy of emotions with every song, going from missing a lover they may have never had to snuggling up to whoever was seated next to them during “Knocks Me Off My Feet.”
Before going into intermission, the singer wanted to take a poll of the audience. He told everyone who had been standing to take a seat and to only stand up if they answered “yes” to his next question.
“Do you feel that we have a gun problem in America?” he asked. The whole house stood.
“You’re able to fix the problem. If we are able to send rockets to the moon I would hope that we would have someone in the government to hold people accountable for the guns they have. I hope someone with a spirit who wants to see more people living than dying will do this because the only people making money are the gun factories and the mortuaries. I don’t care if you agree with me. I love you anyway.”
After his much-needed diatribe, he launched appropriately into “Saturn.”
A short intermission later, Wonder came back to tell the story behind the beloved, iconic “Isn’t She Lovely.”
“I just kept singing ‘isn’t she lovely’ and Yolanda kept saying ‘why do you keep singing isn’t she lovely, it’s going to be a boy.’ I said no, it’s gonna be a girl.”
At that point his beautiful daughter, Iesha, the song’s inspiration, came to join her father.
“And fellas if you looking, go blind if you ain’t got no money,” Wonder joked, pointing to his daughter, who had been singing backup.
He seemlessly transitioned into the much-awaited “Isn’t She Lovely,” while every voice in the house sang along.
“Joy Inside My Tears” followed and Wonder theatrically stopped playing his keys to raise and shake his hands while the crowd clapped and cheered.
Even when the songs from the 1976 “Songs in the Key of Life” double LP were finished, Mr. Wonder wasn’t done. And no one was complaining.
By the time he was closing with “Superstition” the audience was tired from the over three hours of concerted bliss that included surprise acts like Janelle Monae and Earl Klugh, but they still managed to jam through the final chords.
“No one can do it like you, Stevie,” the crying woman from the row behind me sighed as she got up to leave.
And she was right. There is no wonder like Stevie

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After His Fans Wait Breathlessly For 14 Years, D’Angelo Finally Releases His New Album ‘Black Messiah’

After announcing last week that a new album was in the works, D’Angelo surprised fans by quickly releasing “Black Messiah” last night.
The album is the first since the singer’s “Voodoo” in 2000.
In a pamphlet that was handed out at the album’s listening session in New York City sponsored by Red Bull Music Academy and Afropunk, D’Angelo discussed the meaning behind the album’s controversial title.
“Black Messiah’ is a hell of a name for an album,” the artist wrote. “It can be easily misunderstood. Many will think it’s about religion. Some will jump to the conclusion that I’m calling myself a Black Messiah. For me, the title is about all of us. It’s about the world. It’s about an idea we can all aspire to. We should all aspire to be a Black Messiah.”
He went on to describe its political importance.
“Its about people rising up in Ferguson and in Egypt and in Occupy Wall Street and in every place where a community has had enough and decides to make change happen. It not about praising one charismatic leader but celebrating thousands of them. Not every song on the album is politically charged (though many are), but calling this album ‘Black Messiah’ creates a landscape where these songs can live to the fullest. ‘Black Messiah’ is not one man. Its a feeling that, collectively, we are all that leader.”
Many were surprised by the release of this timely album, as the “Brown Sugar” singer is no stranger to false promises.
Rumors of a new album started in April 2005 when fans on message boards started claiming they had heard new music. In September 2008, D’Angelo released “I Found My Smile Again,” which was his first hit in years and his manager told Billboard that he was “coming back.”
Then in December 2011, Questlove talked with “Pitchfork” about D’Angelo, saying “For all intents and purposes, this album is the black version of [The Beach Boys'] Smile. There’s stuff on there I was amazed at, like new music patches I’ve never heard before.”
According to Quest, the album was ”97 percent done.”
The rumors continued, one almost every year with “Sugar Daddy” and “The Charade” being released while on tour and more false promises.
But the timing for this album could not be more perfect.
“All we wanted was a chance to talk / ’stead we only got outlined in chalk,” are just a few of the eerily relevant lyrics on the album’s “The Charade.”
“There are a lot of narratives about D’Angelo’s career,” said author Nelson George, who hosted the listening party, according to The Root. “The man is speaking to the times we live in.

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Jada Pinkett-Smith’s CNN Documentary Reveals Link Between Atlanta Strip Scene and Sex Trafficking

Actress Jada Pinkett Smith has been working closely with CNN to produce a new documentary that focuses on the link between the “glorified” stripper culture in Atlanta and sex trafficking. She took to her Facebook page to share some of the latest updates and offered her thoughts on what she considered to be a surprising discovery.
Smith’s latest film project is shedding light on a serious issue as the actress found that a major source of sex trafficking is not only right under our noses, but it’s also being praised and glorified in today’s mainstream media.
In a recent video log that she shared via Facebook, she explained that she had the opportunity to talk to several strippers in Atlanta who became victims of sex trafficking.
“I just finished my first day of shooting in Atlanta,” she said at the beginning of the vlog. “I went to a wonderful facility called Well Spring and got to meet three really dynamic women who had been trafficked. I learned so much from them today and I really learned a lot about perception.”
The perception, in this case, being that people are praising stripper culture, while actual strippers are being trafficked.
“I think the thing that caught me was the one of the ladies – a really bright young girl – the gateway to trafficking for her was stripping,” she said. “As we know, here in Atlanta the strip culture is pretty prevalent.”
The young woman told Smith that she started stripping so that she could feel independent and make money, and that’s when the mother-of-two says she was genuinely shocked.
“I missed that young women were perceiving stripping as a way of being independent and balling,” she said. “I missed that. I think that has something to do with my age because I was just talking to my girlfriend and was like, ‘Hey, when we were coming up stripping was the bottom.’ The stripping culture was not glorified when I was growing up. If you were stripping there was a problem.”
She compared that perception to what seems to exist today.

“Whereas today, that’s not it,” Smith continued. “Girls look at strippers and go, ‘Yo, I want that!’”
Later in the vlog she referred to that type of perception as a “myth” that needs to be broken and she has hopes that her documentary will be able to do just that.
One of the young women Smith spoke to admitted to the actress that she willingly took on a few “Johns” to make some extra money.
Initially, she felt she was in control and that’s what she liked about it. It wasn’t long, however, before she was trafficked by one of the men, and lost control of who she was sleeping with.
Smith’s documentary will dive deeper into the women’s lives and expose more hidden secrets of Atlanta’s strip scene and its link to sex trafficking.
The CNN documentary has not been given an official release date or title, but reports suggest it will air some time this summer

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Radamel Falcao sends message to Manchester United fans after reveals future doubts

Radamel Falcao has revealed his admiration for Manchester United legend Ruud van Nistelrooy.
The Colombia international has made an underwhelming start to his United career after the striker joined a season-long loan switch from Monaco.
And 28-year-old Falcao, who has scored one goal in eight Premier League apperances, lifted the lid on his favourite United players.

“You know I always admired Ruud van Nistelrooy in my position,” Falcao told United’s website. “He was a star attraction for me.
“Above and beyond him, Ryan Giggs and Paul Scholes too for their style of play. It is much admired by players from all over the world.
“David Beckham, of course. I couldn’t fail to mention him as he has opened up the routes between continents as a footballer.
“They are legends who press all the right hero buttons. Eric Cantona as well – he was a very exciting and entertaining player to watch.”
Falcao added that he wants to repay United supporters for their faith after a slow start to his spell at Old Trafford.
“Oh, it makes me very, very happy to be welcomed so much by the fans,” Falcao added.
“It is really great to be appreciated like this and I want to thank them with all of my heart.
“I think the best way I can repay the supporters for their kindness towards me, and for all that love, support and appreciation, is to score goals and win trophies for them. 

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Liverpool captain Steven Gerrard urges Raheem Sterling to sign new contract at Anfield

Steven Gerrard has warned Raheem Sterling it would be a mistake to leave Liverpool. And he has compared the 20-year-old to Anfield greats Fernando Torres and Michael Owen.
Sterling has been stalling on signing a new £70,000-a-week deal since the summer amid interest from Spanish giants Real Madrid, Bayern Munich and Premier League champions Manchester City.
But Liverpool skipper Gerrard hopes the England ace’s advisors will encourage him to pledge his future to Anfield.

Speaking after Sterling scored twice to fire the Reds into the Capital One Cup semi-finals at Bournemouth on Wednesday, Gerrard said: “He’s great to watch and great to play with.
“He has got that pace and when you look up he’s always giving you an option. That’s what I’ve thrived on throughout my career at Liverpool with the likes of Torres and Owen.”
“I think he can play anywhere along the front, he’s that intelligent. He’s got to keep learning, he’s got to keep wanting it.
“I hope he signs a new contract at the club because I think this club is perfect for him, certainly for the next few years.
“He’s going to play most weeks, the fans love him here. He can progress here and become a top player.
“I hope the people around him give him the right advice because he should stay here.”
Gerrard has also backed Sterling to give Arsenal a close shave on Sunday and get Liverpool’s top-four challenge back on track.
Sterling sported a new shaven haircut at Dean Court and Gerrard added: “It was the haircut, wasn’t it? It was the reason he scored!
“No one recognised him when he came in, he knocked about 10 years off with that haircut!
“Raheem’s got potential to be top drawer for sure – the exciting thing for all of us is that he’s English.”
Liverpool thrashed the Gunners 5-1 in February but Gerrard admits it will be impossible to repeat the trick without Luis Suarez and the injured Daniel Sturridge.
The ex-England skipper said: “Last season we won the game in the first 20 minutes, but when you have a strike-force of Sturridge and Suarez, they are capable of killing teams in 20 minutes.
“It’s different now and everyone knows that. I think they were 60-70 per cent of our goals those two.
“You take them out of any team in the world and it’s going to be tough and it has been.
“But I think this is where you find out what kind of players you’ve got in the dressing room.
“It’s time to roll your sleeves up and fight for the club and try to put it right as soon as possible. 

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The reason why Van Gaal did not play Angel Di Maria in Manchester United clash with Liverpool

Angel Di Maria was passed fit for Manchester United’s clash with Liverpool – but manager Louis van Gaal refused to hand him an instant recall.
That’s according to Argentine newspaper Ole, who report that Di Maria had actually recovered from a slight hamstring tear in time for the match against United’s bitter rivals at Old Trafford last Sunday.
Despite proving his fitness to the United medical team, the Argentina star was left out of the squad by Van Gaal.

Ole claim the United boss decided against the idea of restoring Di Maria as he did not want to put the winger’s long-term fitness at risk.
But Van Gaal, according to the report, has designated this Saturday’s match with Aston Villa as the right time to reintroduce Di Maria to the fold.
The 26-year-old’s absence did not hinder United as they stormed to a superb 3-0 victory over the Merseysiders and extended their winning run to six matches.
Starsport understands Di Maria has returned to full training ahead of the trip to Villa Park 

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Manchester United left-back gives the club festive fitness boost by returning from injury

The England left-back has been out for a month after straining ligaments in the Arsenal win but could be back in action on Boxing Day.
Luke Shaw is set to return for Manchester United on Boxing Day after recovering from the ankle injury that has kept him out for a month.
Shaw suffered the injury in United’s 2-1 win at Arsenal on November 22, but is back in training and could start against Newcastle.

The left-back strained ligaments at the Emirates Stadium – the latest in a line of problems since arriving at Old Trafford in the summer.
Ashley Young has impressed in a left wing-back role in Shaw’s absence and looks set to fill in again when United travel to Villa Park on Saturday.
A success in the West Midlands will seal a seventh win on the spin for Louis van Gaal’s men, who are now breathing down the necks of rivals Manchester City 

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TTIP: Cameron pledges support for EU-US trade deal........Continue reading the main story

EU leaders and US President Barack Obama discussed TTIP earlier

David Cameron has pledged to put "rocket boosters" behind plans for an EU-US free trade deal.

The UK prime minister said EU and US leaders had met and all agreed the Transatlantic Trade and Investment Partnership (TTIP) "is a deal we want".
Speaking at the G20 summit, he said arguments against TTIP were "weak" and fears over the NHS were "nonsense".
Many opponents are concerned about TTIP giving firms power to sue governments if they are hit by policy changes.
Len McCluskey, general secretary of the Unite union, has called for the NHS to be excluded from the deal.
The EU is currently analysing responses to a consultation on a controversial element of TTIP which would allow foreign investors to go to an international tribunal for compensation if a government breaks the rules in a way that harms the company's interests.
'No threat' Mr Cameron said he "sensed an enthusiasm" from EU leaders and US President Barack Obama during a meeting in Brisbane earlier, and was now "hopeful of progress" on TTIP.
The UK prime minister said the deal could be supported by the "classic free trade argument for growth and jobs and investment".
"The opportunities for Britain of trading more with the United States of America are clear," he said.

Protests took place last month in the UK and other countries including Germany and France

Critics say TTIP's powers for companies to sue governments are anti-democratic

Speaking about concerns over disputes between companies and countries, Mr Cameron said: "We've signed trade deal after trade deal and it's never been a problem in the past."
On the NHS, he said: "Some people argue in some way this could damage the NHS. I think that is nonsense. It's our National Health Service. It's in the public sector, it will stay in the public sector. That's not going to change. It will remain free at the point of use.
"There's no threat, I believe, from TTIP to the National Health Service and we should just knock that on the head as an empty threat."
Anti-TTIP protests were held last month in the UK, Germany, France, Italy and Spain.
At their annual conference in September, delegates from UK unions unanimously backed a motion opposing TTIP.
Many unions focused on the potential impact on the NHS, saying TTIP would allow private firms to sue the government if it chose to return privately run services to the public sector.
Unite general secretary Len McCluskey accused David Cameron of "riding roughshod" over objections and "trying to brush the threat of TTIP under the carpet".
He asked: "If it is not a threat then why doesn't David Cameron just make an explicit commitment to use his veto in Europe to get the NHS out TTIP?"
He drew comparisons with steps taken by the French government to exempt their film industry from the agreement.
Food safety fears One aim of the negotiations is to reduce the costs to business of complying with regulations.
Critics say this could lead to lower standards of protection for workers, consumers and the environment, with food safety a particular concern for some.
But Mr Cameron said TTIP would give the EU and the US a joint interest in areas like food and environmental standards.
Also at the G20, Mr Cameron reiterated his warning of possible further sanctions against Russia over Ukraine.
He said Russia must stop sending troops into the country to support pro-Russian separatists - something the Kremlin denies.

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China to double Iranian investment..........Continue reading the main story

Sanctions have made it hard for Iran to finance infrastructure projects

China is set to double its investment in Iranian infrastructure projects, Iran's Mehr news agency reports.

China has raised its quota for Iranian projects to $52bn (£33bn) from $25bn the report said, quoting Iran's deputy minister for energy, Esmail Mahsouli.
Water, electricity, oil and gas projects will all benefit from the extra financing, Mr Mahsouli said.
Iran has turned to China, Russia and Turkey for financing as Europe and the US have strict sanctions on the nation.
The US has an almost total economic embargo on Iran, while the European Union tightened up its sanctions in 2012, particularly targeting the energy and banking industries.
The US, the EU and other nations suspect Iran of developing atomic weapons and have imposed sanctions over that threat.
Iran says its nuclear programme is only for civilian use.
It is holding talks with world powers aimed at reaching a deal over its nuclear programme.
Negotiators meet in Vienna this week, ahead of a deadline to reach a deal by 24 November.
The US says it will unblock $2.8bn in frozen Iranian funds, in return for Iran continuing to convert its stocks of 20%-enriched uranium into fuel.

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HSBC's private banking arm accused of tax fraud by Belgium...........

Authorities in Brussels have charged HSBC's private banking arm, which is based in Switzerland, with helping wealthy Belgians to avoid taxes.

Prosecutors allege that hundreds of clients - including diamond dealers in Antwerp - moved money to offshore tax havens with the help of the bank.
They said it resulted in hundreds of millions of euros in lost tax revenue.
In August, HSBC warned that the penalties in relation to such allegations "could be significant".
In a statement, Belgian authorities accused HSBC of "having knowingly eased and promoted fiscal fraud by making offshore companies available to certain privileged clients".
These companies, which are based in Panama and the Virgin Islands, exist for the sole purpose of tax evasion, they added.
Over 1,000 taxpayers are alleged to have been involved in the fraud, which saw funds amounting to several billion dollars transferred out of Belgium since 2003.
'Illegal' Banks operating in Switzerland are bound by the European Union Savings Directive to counter cross-border tax evasion, by collecting information on the savings income foreign residents receive outside their resident state.
Belgian authorities also published emails and other correspondence between HSBC and Belgian clients, which appear to show the bank offering tax evasion services.
Prosecutor Michel Claise accused HSBC of "fraud, money laundering, criminal association and illegal exercise of the profession of financial intermediary".
In October, Belgian police raided the homes of approximately 20 people with private bank accounts at HSBC's Swiss subsidiary, to gather evidence against the lender.
HSBC has been subject to a series of fines for misconduct in recent years, most recently in relation the manipulation of foreign currency exchange rates.

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China and Australia sign major trade agreement

Australia and China have signed a landmark free trade agreement, after almost a decade of negotiations.
The agreement will gradually open up markets to billions of dollars of new business between the two nations.
Just before it was signed, Xi Jinping made an unprecedented address to both houses of the Australian parliament.
The BBC's Rico Hizon reports from Singapore on what both sides stand to gain from the deal.

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Snapchat launches Snapcash payment feature with Square.............Continue reading the main story

Snapcash allows Snapchat users to send money to friends by using the private message feature

Snapchat has unveiled a new feature that will allow users to send money to other clients of the messaging app.

Snapcash is a partnership with payment-processing firm Square, which offers its own stand-alone friend-to-friend payment app called Square Cash.
The service will only be available to Snapchat users in the United States who are over 18 years old.
None of a user's personal financial information will be stored on Snapchat's servers.
Security concerns Almost immediately, the news of the money-sending feature was met with some raised eyebrows, as Snapchat has struggled with several high profile security breaches.
In May, Snapchat settled with the US Federal Trade Commission (FTC) over allegations that it misled users over data collection and failed to inform them that their messages could be saved.
The company agreed to be monitored by the FTC for 20 years.
And earlier in the year, in January, at least 4.6m user accounts were compromised by hackers, who posted usernames and phone numbers on the web.
Snapchat was keen to allay concerns over security.
Users who sign up for the service will be creating a Square Cash account.
"We set out to make payments faster and more fun, but we also know that security is essential when you're dealing with money," wrote Snapchat in a blog post announcing the feature.
"Square has a ton of experience in this area and our teams have been hard at work to make Snapcash a great experience for everyone."
Founded in 2011 by the then 23-year-old Evan Spiegel, Snapchat currently has around 100 million monthly active users.
How it works Snapchat is a messaging app that allows the sharing of videos and images that "disappear" after a short period of time, usually just a few seconds.
To use Snapcash, a user enters their banking information into Square Cash's servers.
Then, to send a payment, a Snapchat user types in the dollar amount that they'd like to send in a private message.
The app then recognizes the dollar amount - $10 say - and a green payments button appears, which a user would tap to complete the payment.
The payment system is similar to other mobile payment services, such as Venmo and PayPal.
It is part of Snapchat's broader push to expand beyond its core messaging business by both adding advertising and branching out into live events.

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Global city leaders call for use of resources in urban planning

Dar es Salaam Mayor Dr Didas Massaburi

More than 50 mayors, urban planners and technical experts from 25 cities around the world are meeting in Dar es Salaam to share experiences on managing rapid urban expansion through metropolitan planning.

The four-day event dubbed the Global Lab on Metropolitan Strategic Planning, or ‘MetroLab’ which is jointly organised by the World Bank and Dar city was launched yesterday.

This is the first time for the event to be held in Africa since the MetroLab initiative was launched in April 2013, supported by the Korean Research Institute for Human Settlements, Seoul Municipal Government, Cities Alliance and Ford Foundation.

Dar es Salaam mayor, Didas Massaburi played a leading role in defining the MetroLab mission, explaining: “Urban planning can be effective only if cities think of the people and the communities that live in surrounding districts, who will be impacted by the economy, social activities and the environment of the entire region.”

He was of the view that the insufficient number of city planners is one of the reasons impeding initiatives of proper planning.
“We agree that our cities are not well planned and the problem is growing rapidly due to the lack of education amongst the community on master planning,” he explained.

Regarding the planning of Dar city, Massaburi said they are seeking to collaborate with the private sector to implement such projects.
“There are some projects that cannot be implemented without support from the private sector, for ease and speedy implementation,” he added.

The mayor noted that though there are laws on city planning, especially in settlements, there is little compliance, “we have to work hard especially in cities like Dar es Salaam where population is growing rapidly.”

World Bank Tanzania Country Director Philippe Dongier said: “Dar es Salaam is one of the fastest growing cities in the world,” adding: “As a city grows rapidly, it becomes essential to ensure a strong local tax base for municipal governments, to adjust governance arrangements to enable city-wide metropolitan planning and management, to implement zoning policies that facilitate growth of industries as well as good and safe living conditions and heritage conservation.”

“It also becomes critical to enable competitiveness of enterprises to generate the large number of productive jobs that are needed by the booming urban labour force – including by focusing on skills, access to finance, and infrastructure,” noted Dongier.

Ede Ijjasz-Vasquez, World Bank Senior Director for the Social, Urban, Rural and Resilience Global Practice, said: “MetroLab is unique in the way cities at all stages of development are taking the lead to learn from each other. We hope this initiative will help cities find solutions, as they pursue inclusive and sustainable urban growth.”

Also present at the event, Deputy Permanent Secretary - Prime Minister’s Office-Regional Secretariat and Local Government, Zuberi Samataba said despite opportunities availed by the cities, the growing population in the cities normally doesn’t correspond with the available resources.

He said for starters the cities should become more competitive and create more jobs.

He said there is a need to have livable and bankable cities in terms of attracting economic opportunities and managing the available cultural diversities while preserving the environment.

The government official said Tanzania has to redirect its cities to match with others and should also educate the community on the importance of city planning.

He was however optimistic that with committed and responsible authorities, Dar es Salaam can be properly planned.
He further said Tanzania has been a strong supporter of such initiatives and that is why the city of Dar es Salaam has participated fully in the ‘Lab’ since its inauguration in USA last year.

With Dar es Salaam as a ‘laboratory for learning’, participants will visit the city’s rapid bus transit system, which is widely seen as a catalyst for metropolitan development.

They are also expected to discuss metropolitan perspectives of transport, land use and urban sprawl; managing metropolitan services including solid waste, water, and sewerage; housing; metropolitan finance; and other issues.

Lessons learned from the experiences of cities around the world at MetroLab will inform the World Bank’s work with the Tanzanian government on a new urbanisation review diagnostic, to help Tanzanian cities become more competitive and create jobs.

Cities and municipalities represented at the historic event include Accra, Addis Ababa, Arusha, Colombo, Dar es Salaam, the three Dar es Salaam municipalities (Ilala, Kinondoni and Temeke), Kigali, Kisumu, Mbeya, Mumbai, Mwanza, Nairobi, New York, Paris, Karachi, Seoul, Rio de Janeiro, Singapore, Tanga and Zanzibar

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Membe lobbying for withheld GBS funds

Foreign Affairs Minister Benard Membe.

Foreign Affairs and International Cooperation minister Bernard Membe has said he will this week meet with Tanzania’s development partners who have withheld funds for the General Budget Support on corruption allegation grounds.

Membe said the main aim of his mission is to convince the donors to release the money they have suspended for the General Budget Support which might affect government operations if not released.
The minister said before he meets the donors, he would go through the Tegeta Escrow Account report first.

The minister vowed that any official implicated in the scandal will be taken to task.

He would not name any officials implicated, but several government officials, banks and court officials have been mentioned by a section of the media to have been involved in the decade old scam of the nation which has rendered power bill to skyrocket.

“The Controller and Auditor General’s report on Tegeta Escrow Account is ready and I will have a look at it before I meet the development partners. My meeting with the development partners is mainly meant to find a solution to the standoff,” he said on the sidelines of the interview at the official opening of the First Voice of Social Sciences International Conference in Dar es Salaam yesterday.

He hastened to add: “Tomorrow (today) or Wednesday I am going to meet with the development partners, the aim being to plead with them to release the GBS withheld funds to the tune of USD500m (roughly 846bn/-).”

According to the minister, the country will continue to maintain transparency on such matters as doing so will help foster good governance.

“If there is any one implicated in this matter, disciplinary action shall be taken immediately,” he noted.
The conference is organised by the University of Dar es Salaam, School of Social Sciences.

Speaking at the conference, Membe called on academics to assist the government in conducting research on issues pertaining to corruption saying their finds would have a big impact on individuals and the nation at large.

Membe said it is wrong to pretend that there is no corruption while the wananchi are being affected by it.

“We should not reach a point of accepting that corruption is part and parcel of our country. This is why I implore on you members of the academics to help by carrying out scientific studies on corruption and give us recommendations on how it can be touted out,” he said.

He added: “If professors will not do research untrustworthy people who have no knowledge in research will do the same for the interest of few people through their finances.”

Dean Faculty of Humanities and Social Sciences Prof Sam Maghimbi promised to work on the matter for the benefit of the nations.
The two-day conference with the theme Achieving Sustainability in an Interconnected World” has brought together over 200 academicians from different countries in Africa with aim of discussing four issues, the organisers said.

They include energy, research, corruption and environment.
Meanwhile, the Controller and Auditor General’s report on the transactions involving the Independent Power Tanzania Limited (IPTL)   in the Tegeta Escrow Account has been referred to a Parliamentary Public Accounts subcommittee for closer scrutiny.

The report will be examined by full committee of the PAC before making its recommendations to the Parliament.

Speaking yesterday in Dodoma shortly after receiving the report from the Assembly Deputy Speaker, Job Ndugai, Committee Chairman Zitto Kabwe said the committee will operate as an investigating entity.

In executing its ten-day task, the committee will in the first place meet the Controller and Auditor General, who carried out the probe, to be followed by the Prevention and Combating of Corruption Bureau (PCCB) director general.

“This marks government commitment in working on the matter as recommended by Members of the Parliament. All the matters have been held quite open, we have the report and we assure you that we will deliver to our best,” the chairman said.

Kabwe, who had earlier recommended for live broadcast as the PAC investigates those implicated in the saga, yesterday rescinded his stand, saying that all proceeding will be in camera.
This is because the committee will be working as an investigatory body, he insisted.

The chairman said the committee will work around the clock to ensure that all the required matters are addressed without fear or favour.

Deo Filikunjombe, PAC Deputy Chairman said the ten days that the committee will be working on the document are more than enough to conclude the saga.

Applauding media houses for revealing the scandal, Filikunjombe noted that media had played a pivot role and that “we have to thank them for making the matter public.”

He said there is no doubt that PAC has never backed down in its proceedings, especially in examining controversial reports and that the PAC sittings will resort to justice

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Japan PM Shinzo Abe calls snap election in December

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Mr Abe may be looking for a mandate to "push ahead with even bolder economic reform", reports Rupert Wingfield-Hayes

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Japan's Prime Minister Shinzo Abe has called an early election, two years ahead of schedule.

At a news briefing, he said he would dissolve parliament later this week and was also delaying a planned but unpopular increase in sales tax.
Mr Abe was elected two years ago with an ambitious plan to revive the economy, but has struggled to do so.
His popularity has fallen but he is expected to win the election, which will take place in mid-December.
"I will dissolve the lower house on 21 [November]," Mr Abe said.
Mr Abe's party, the Liberal Democrats, already have a majority in the lower house, but analysts said Mr Abe hoped to consolidate power over an opposition party which is in disarray.
He also wants public support to continue to press ahead with "Abenomics", his ambitious plan to kick-start Japan's stagnant economic growth using heavy government spending and economic reforms.
"I need to hear the voice of the people," Mr Abe said. "I will step down if we fail to keep our majority because that would mean our Abenomics is rejected."
One of his senior advisers told the BBC instability was the last thing voters want.
"Many people in Japan still remember how chaotic Japan's revolving door politics was, when the prime minister changed once every year," said Tomohiko Taniguchi, special adviser to the cabinet.

A sales tax increase was implemented in April to curb Japan's massive public debt

 

 But that dented consumer spending which is crucial to the Japanese economy

Consumers not spending The rise in Japan's sales tax was brought in by the previous government in 2012 to curb Japan's huge public debt, which is the highest among developed nations.
The first rise - from 5% to 8% - took place in April. Mr Abe's government had hoped the increase would boost government income but instead Japanese consumers stopped spending.
Figures released on Monday showed that the world's third biggest economy had fallen back into a technical recession.
The second increase, to 10%, was set for October 2015 but will now be delayed by at least 18 months.

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Indonesia raises fuel prices by more than 30%

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The Indonesian government has increased fuel prices by more than 30% in an attempt to save the economy more than $8bn (£5bn) in 2015.

Prices were raised by 2,000 rupiah ($0.16; £0.10) per litre, with gasoline now costing 8,500 rupiah and diesel 7,500 rupiah.
The subsidised fuel prices in Indonesia are among the cheapest in the world.
The unpopular move sparked small protests and long queues at petrol stations in the capital, Jakarta.
Previous price increases have sparked violent protests and reports said young people had clashed with police at a demonstration hotspot before the announcement on Monday.
New President Joko Widodo, who took office last month, said the increase would bolster government finances and help with the nation's trade imbalance.
"The country has needed a budget for infrastructure, healthcare and education but instead spent it on subsidising fuel," he told reporters on Monday.
Indonesia's $23bn fuel subsidy bill is the main reason behind its budget deficit. It is also behind the nation's trade imbalance as Indonesia imports much of its fuel.
The economy also grew at the slowest pace in five years in the third quarter at 5.01%, compared to a year ago.  

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Federal Reserve in easy decision to end stimulus.....................Continue reading the main story

The Fed meeting minutes indicate the central bank believed turmoil abroad would pass

Although the US Federal Reserve was worried about turmoil in emerging markets, the central bank reached an easy consensus to end its stimulus programme, its latest minutes reveal.

Minutes from the central bank's October meeting show officials were concerned about stock market fluctuations and weakness abroad.

However, they worried that saying so could send the wrong message.
Overall, officials were confident the US economy was on a strong footing.
That is why they decided to end their stimulus programme - known as quantitative easing (QE) - in which the Fed bought bonds in order to keep long-term interest rates low and thus boost spending.

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"In their discussion of the asset purchase programme, members generally agreed . . . there was sufficient underlying strength in the broader economy to support ongoing progress toward maximum employment," read the minutes, referring to the decision to end QE.

US markets reacted in a muted way to the news, with the Dow Jones briefly rising before falling once more into the red for the day.

Reassurance However, to reassure markets that the Fed would not deviate from its set course, the central bank decided to keep its "considerable time" language in reference to when the Fed would raise its short term interest rate.

That interest rate - known as the federal funds rate - has been at 0% since late 2008, when the Fed slashed rates in the wake of the financial crisis.
Most observers expect that the bank will begin raising that rate in the middle of 2015, mostly in an effort to keep inflation in check as the US recovery gathers steam.
However, US Fed chair Janet Yellen has sought to reassure market participants that the bank will not act in haste and remains willing to change its timeline should economic conditions deteriorate in the US.

The minutes also show that the Fed is still concerned about possibly lower-than-expected inflation, particularly as oil prices continue to decline and wage growth remains sluggish.
"Many participants observed the Committee should remain attentive to evidence of a possible down shift in longer-term inflation expectations; some of them noted if such an outcome occurred, it would be even more worrisome if growth faltered," they read.
That led some on Wall Street to believe that the central bank might put off a rate raise even further into the future, if the outlook for inflation changes significantly.

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Apple to push Beats to all iPhones according to FT...........Continue reading the main story

According to the FT, Apple will pre-install the Beats streaming music service on iPhones and iPads

Apple is planning to push its Beats streaming music service to every iPhone in the new year, according to a report in the Financial Times newspaper.

Apple will include the Beats app in its latest update to the iOS operating system used on iPhones and iPads, writes the FT.
Apple purchased Beats, known primarily for its headphones, for $3bn (£1.9bn) earlier this year in May.

The company declined to comment on the FT's report.
The FT broke the news of Apple's acquisition of Beats earlier in the year.
The move into streaming music threatens the dominance of market-leader Spotify, and also comes as downloads from Apple's music store, iTunes, have declined.

By pre-installing the app on iPhones and iPads, Apple will be able to easily reach new customers.
However, the value of streaming music services to artists has recently come under scrutiny after Taylor Swift pulled her entire music catalogue from Spotify.
Ms Swift said that the amount paid to her in royalties from Spotify undervalued her work.
Spotify has rejected that claim. 

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Australia's ANZ bank suspends seven traders..........Continue reading the main story

ANZ's headquarters in Sydney.

ANZ, one of Australia's biggest banks, has suspended seven traders as part of an inquiry into the potential rigging of key interbank interest rates.

The Australian Securities and Investment Commission (ASIC) has been investigating the country's interbank market since mid-2012.

Nigel Williams, chief risk officer of ANZ, said it was co-operating fully with ASIC.
The bank has been also been conducting its own investigation.
Mr Williams said: "This is a complex issue and ASIC's investigation and ANZ's internal review may not be complete for some time. In light of this, we are taking the precaution of having seven staff involved in markets trading step down pending completion of the investigation into practices to 2013."

ANZ said it was not appropriate to comment further while the investigations were completed.
Regulators have been examining rate-setting mechanisms after banks including Barclays, RBS and UBS were fined billions for rigging Libor, the London interbank offered rate.
Earlier this year, ASIC censured French lender BNP Paribas and Royal Bank of Scotland after revealing that its traders tried to influence the setting of Australia's interbank rate.
Australia scrapped its interbank rate-setting system last year after several banks decided to leave the panel. It was the first major market to dismantle the structure.

Shares in ANZ fell 0.2%, or 6 cents, to $31.77 in afternoon trading in Sydney. ANZ is valued at 87.7bn Australian dollars ($76bn; £48.6bn) - more than either RBS or Barclays.
Last month it announced a record full-year net profit of A$7.3bn, up 15% from a year earlier 

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US stocks boosted by China rate cut

 

(Open): US stocks opened higher after China announced a surprise rate cut and the head of the European Central Bank hinted at further stimulus action.

The Dow Jones rose 158.02 points, or 0.9%, to 17,877.02, while the S&P 500 climbed 18.54 points to 2,071.29.
The technology-focused Nasdaq was 34.32 points higher at 4,736.19.
In an attempt to boost growth, China will cut its one year deposit rate to 2.75% from 3.0%, and trim its one-year lending rate to 5.6% from 6%.
Sentiment among investors was also boosted by comments from Mario Draghi, the head of the European Central Bank (ECB).
Mr Draghi said the ECB was ready "step up the pressure" and take more measures to try to boost growth in the eurozone.
The ECB has already cut its benchmark interest rate to 0.05% and begun some asset purchases, but Mr Draghi said the bank could alter "the size, pace and composition of our purchases".
The comments triggered a fall in the value of the euro, which was down more than a cent against the dollar at $1.2427

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Multi-Billion-Dollar Gas Pipeline In Development To Link South Africa With Mozambique

South African-based independent oil and gas company SACOIL Holdings is set to construct a 2,600 km long gas pipeline worth $6 billion. The pipeline will link the South African gas fields with that of Mozambique, fostering a growing regional integration.
“The project intends to harness the commercial potential of the natural gas reserves discovered in the Rovuma sedimentary basin in the
Mozambican province of Cabo Delgado, and involves construction of a 2,600km pipeline costing an estimated $6 billion,”said SACOIL Holdings in a statement.
SACOIL Holdings said it has established a joint development agreement with Mozambican public institutions; National Institute for Management of State Holdings (Igepe) and South Africa’s Public Investment Corporation SOC Limited (PIC). They wil perform the technical and commercial feasibility study for the project.
“Power production at thermal power plants, as well as the supply of gas to industries, domestic consumption and vehicles are some of the objectives that will be evaluated by the feasibility study, which will outline the potential of natural gas as clean energy to reduce carbon emissions and associated environmental effects,” the group added in the statement.
An Oil and Gas Journal released in January this year raised Mozambique’s proved natural gas reserves to 100 trillion cubic feet (Tcf), up from 4.5 Tcf the previous year, placing the country as the third-largest proved natural gas reserve holder in Africa, after Nigeria and Algeria.
According to the International Monetary Fund (IMF), coal and natural gas production could potentially increase Mozambique’s economic growth rate by two percentage points annually over the next decade 

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Yale University Determined To Help Strengthen African Businesses and Leaders

Yale has identified leadership development as a key focus of the Africa Initiative and a way in which it can contribute to Africa’s growth story.
The university has used its intellectual resources to provide training to several African organizations and seeks to continue helping build African leaders in the future. To that end, Yale has hosted conferences focused on thinking strategically about how to make an impact on the continent. Here is more on the Africa programs and conferences executed by Yale departments in fall 2014:
Seventeen Nigerian professionals participated in the 2014 Nigeria Leadership Initiative (NLI) Fellows Seminar, a leadership development conference for exceptional members of the NLI. The Office of International Affairs developed the conference, which was held on campus. Participants included Hadiza Bala Usman, founder of #BringBackOurGirls, a movement working for the rescue of more than 300 young girls abducted by extremists in northern Nigeria, and Audu Maikori, founder and CEO of Chocolate City, Africa’s biggest entertainment company. The group spent six days discussing Nigeria’s economic future, emotionally intelligent leadership, entrepreneurship, city building, and more with Yale professors, U.S. ambassadors, and representatives from the City of New Haven. At the end of the program, the NLI awarded participants Fellow status within the organization.
The Global Health Leadership Institute (GHLI) hosted the Strategic Thinking in Foreign Affairs Symposium. Sixteen delegates from the Ethiopian Ministry of Foreign Affairs explored grand strategy, issues in governance, the future of China-Africa relations, business development, and more with Yale faculty, including GHLI Faculty Director Dr. Elizabeth Bradley. Leading practitioners also led interactive lectures and provided practical support. At the end of the Symposium, delegates presented original strategies to be implemented upon their return to Ethiopia.
Members of the Yale School of Management’s Black Business Alliance (BBA) organized the first Africa Business Practicum, a one-day workshop tackling real challenges faced by businesses in or seeking to enter Africa. Participants from Yale, the Wharton School, the MIT Sloan School of Management, and other top business schools collaborated on potential solutions and received feedback from practitioners like the Yale World Fellows. Students from Lagos Business School and the University of Cape Town Graduate School of Business also participated via videoconference. 

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BG Group's £25m deal for new chief attacked by directors' group..........Continue reading the main story

Helge Lund has been widely praised for his transformation of Statoil

A pay deal proposed for the new head of gas explorer BG Group has been branded "excessive and inflammatory" by one of the UK's leading business lobby groups.

The Institute of Directors said a £25m deal for Helge Lund would damage the reputation of UK business if approved at a shareholders' meeting next month.
The IoD acknowledged its criticism was strong, coming from a body whose job is to promote the interests of UK firms.
BG said Mr Lund was being paid a "competitive market package".

This pay deal would do serious damage to the reputation of British business.”

Simon Walker Institute of Directors

Mr Lund joins BG as its new chief executive in March, having been recruited from Statoil with the award of shares worth £12m and the chance of up to another £13.5m in pay, pension and other benefits if performance targets are hit.

He established his reputation after transforming Norway's Statoil from a national operator into a global company.
But some BG shareholders have voiced concern about the size of the annual pay package being offered by the FTSE 100 company.
The Investment Management Association, a body representing shareholders, issued a "red top" alert - a warning about potential corporate governance breaches.
Now the IoD has weighed in with criticism that the pay package "is a red rag to the enemies of the free market".
Simon Walker, the IoD's director general, said: "The Institute of Directors is always reluctant to criticise an individual company. However, we do have a responsibility to criticise an action that brings the whole of British business into disrepute and threatens already fragile attitudes to corporate Britain.
"For that reason we state explicitly our strong opposition to BG Group's recommended £25m pay deal for its incoming chief executive. It is excessive, inflammatory and contrary to the principles of good corporate governance."
'Serious damage' He said it was especially excessive given BG's size. Chief executives at the much-larger Royal Dutch Shell and BP have smaller pay packages.
Mr Walker added: "This pay deal would do serious damage to the reputation of British business six months ahead of a general election and at a time when the reputation of UK plc is still suffering."
The IoD has raised eyebrows before with criticism of pay and bonus issues at Barclays and Sports Direct. But a spokesman accepted that this BG criticism was its strongest yet of a major company.
BG declined to comment specifically on the IoD's comments. But a spokesman said: "We believe Helge Lund is the right person to be the next chief executive and we are paying a competitive market package for an experienced oil and gas executive." 

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Botin ousts Santander chief executive...........Continue reading the main story

• Executive chairman Ana Botin has forced out Santander chief executive Javier Marin

Ana Botin has moved swiftly to reshape Santander, ousting its chief executive after less than two years in the role.

She took over as executive chairman of Europe's biggest bank in September following the death of her father Emilio Botin.
Javier Marin has been replaced by Jose Antonio Alvarez, who had been chief financial officer for a decade.
Santander named Jose Garcia Cantera as the new CFO and also appointed three new directors to its board.
Ms Botin had been head of Santander UK since 2010 and chaired the bank's Spanish-based subsidiary Banesto for eight years before that. She began her banking career at JPMorgan.
Mr García Cantera had been a highly rated banking analyst at Citi before becoming chief executive of Banesto, which was integrated with Santander Spain last year.
Chris Wheeler, a banking analyst, said that the decision was a major move, but not that big a surprise given that Ms Botin wanted to make her mark on the business and retain overall control in her capacity as executive chairman.
He said there may have been a clash of views about the direction that the bank should take.
"This is a sign of Ana Botin putting her stamp on the business and showing what she wants to do," said one Madrid-based analyst.
Ms Botin said that Mr Marin had "led the commercial transformation of our bank, bringing innovative management to lead our customer segmentation and service improvement initiatives, while also improving our profitability and efficiency".
Boardroom shake-up Santander also appointed three new independent members to its board. Bruce Carnegie-Brown, who had been a member of Santander UK's board, will fill the new role of lead independent director. Mexican businessman Carlos Fernandez and Sol Daurella, head of the Coca-Cola bottling business in Spain, are the other two new directors.
Nine of the now 15-strong board will be independent in a bid to address concerns that Ms Botin's father exercised too much boardroom control in his 28-year tenure. Five of the directors are women.
Shares in Santander rose 1.9% to 7.22 euros in Madrid following the announcement, valuing the bank at 90bn euros.
The company is under pressure to improve its financial strength after admitting that it would end the year in a weaker position than its rivals under the latest European measures.
Earlier this month Santander said that net profits rose by more than half to 1.61bn euros for the three months to September 30, with costs cut by a higher than expected 1bn euros.
Profits from the UK operations for the nine months to September jumped 43% to almost 1.2bn euros, making it the most lucrative division

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US economy grows faster than first forecast..................Continue reading the main story

The US economy grew much faster in the third quarter than first reported, official figures have shown.

It expanded at an annualised rate of 3.9% between July and September, up from the 3.5% first estimated by the Bureau of Economic Analysis.
The rise, which follows a strong second quarter, means the US has seen its strongest two consecutive quarters of growth for a decade.
Consumer spending was the biggest driver of the raised estimate.
It grew by 2.2% according to the latest estimate, which was higher than the initial calculation of 1.8%.
Consumer spending is closely watched as it accounts for 70% of US gross domestic product (GDP).
Moving on The data suggests the US has shrugged off the slow start to the year when heavy snow saw the economy shrink.
"The question of whether the economy is accelerating or will accelerate is no longer a question; we can say somewhat definitively that the economy has already accelerated," said Dan Greenhaus, chief strategist at BTIG.
Meanwhile, a separate survey, showed US house prices rose by more than expected in September.
The closely-watched S&P/Case Shiller index jumped 4.9% year-on-year.
The index, which measures single-family home prices in 20 cities, showed that prices were up 0.3% month-on-month on a seasonally adjusted basis.
"With the economy looking better than a year ago, the housing outlook for 2015 is stable to slightly better," said David Blitzer, chairman of the index committee at S&P Dow Jones Indices.
March rate rise? Capital Economics economist Paul Dales said the strong GDP upgrade underlined his expectation that the Federal Reserve could raise interest rates as soon as March next year.
"Most people were expecting a downward revision so this was a real surprise," he added.
At the end of October, the US Federal Reserve said it would not raise interest rates for a "considerable time".
It also ended its quantitative easing (QE) stimulus programme of buying financial assets and creating new money to pay for them, aimed at stimulating the economy.
However, it said it was confident the US economic recovery would continue, despite a global economic slowdown 

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