UK 'plebgate' scandal becomes police crisis

The "plebgate" scandal started with an angry exchange over a bicycle in front of Downing Street. The controversy over what a senior politician did or didn't say to officers guarding the prime minister's official residence has now grown into a full-blown crisis which is raising new questions about the ethics of Britain's largest police force.
Scotland Yard's reputation has already been battered over its failure to curb law-breaking journalists and police corruption exposed in the phone hacking scandal which exploded last year.
The force faces renewed scrutiny after Andrew Mitchell, formerly the Conservative Party's chief whip, said a police report quoting him as abusing officers as "morons" and "plebs" — a term of abuse for working-class people — was based on lies.
"For the next three weeks, these awful phrases were hung round my neck in a concerted attempt to toxify the Conservative party and destroy my political career," Mitchell wrote in The Sunday Times, describing the period which followed the leak of a police report into the incident.
"I never uttered those phrases; they are completely untrue."
Mitchell has long acknowledged losing his temper and swearing as he tried to maneuver his bike into Downing Street on the evening of Sept. 19. He was running late and officers were refusing to open the main gate, he said. But he has long denied using the term "pleb" or telling officers to "learn your place," words which he described on Sunday as "a bad caricature of what an ill-mannered 1930s upper-class lout might say."
In Britain, a country very sensitive to issues of social class, the story dominated the headlines for weeks. Some police constables, or PCs, walked around with T-shirts bearing the words "PC Pleb." Political opponents called for Mitchell to lose his job. When an email from what appeared to be an independent witness emerged to corroborate the police account, Mitchell found himself with little choice but to resign in October.
The police account, however, has now been challenged; the independent witness was allegedly a policeman who wasn't even at the scene. Security camera footage taken from Downing Street and broadcast by Britain's Channel 4 didn't seem to line up with the officers' accounts. Two people have been arrested as Scotland Yard has pledged to get to the bottom of what happened.
"The allegations in relation to this case are extremely serious," Scotland Yard chief Bernard Hogan-Howe said in a statement Sunday. "For the avoidance of doubt, I am determined there will be a ruthless search for the truth — no matter where the truth takes us."
If it turned out that officers conspired to frame Mitchell, it would be another dark chapter for the respected force, which has already seen several high-profile resignations and arrests and a wrenching police corruption probe spawned by the phone hacking scandal. Politicians are already talking of the need for reform.
Britain's former policing minister, Nick Herbert, said journalists and public servants might reflect on whether they jumped to conclusions about Mitchell, but added that "it is the police service which above all must take stock and examine its own culture."
The scandal, meanwhile, has revived Mitchell's political fortunes, with many calling for him to be reinstated to Prime Minister David Cameron's Cabinet.

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UK household finances worsen sharply in December - Markit

- Britons suffered the biggest deterioration in their finances in seven months in December and turned more downbeat about 2013, a survey showed on Monday.
The Markit Household Finance Index fell to 36.8 - the lowest since May - from November's near two-year high of 39.3, sinking further below the 50 level that would mark no change in the financial situation compared with a month ago.
Around a third of respondents said their finances had worsened in December, while only 6 percent reported an improvement. Overall, households also felt less secure in their jobs than in November.
"The latest survey suggests that domestic consumer demand will remain under pressure in the near term, especially since inflation perceptions remain elevated and job insecurities are prevalent across the UK," said Markit economist Tim Moore.
Three quarters of respondents expected their finances to worsen or to show no improvement next year.
In a further worrying sign for policymakers, inflation expectations for the year ahead picked up slightly from the three-month low posted in November.
The survey of around 1,500 people was conducted between December 13 and December 17.

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Russian opposition leader faces new probe

A prominent Russian opposition leader faces his third investigation in five months as authorities intensify pressure on the opposition.
The Investigative Committee said in a statement on Monday that they launched a new probe against Alexei Navalny, who was already charged with theft and with fraud and money laundering in two separate cases.
Investigators now say they also suspect Navalny of defrauding the Union of the Right Forces, a now defunct liberal party, of 100 million rubles ($3.2 million) in 2007.
Navalny, a charismatic 36-year-old lawyer, made his name exposing corruption in state-controlled companies. Last winter, he spearheaded a series of street rallies in Moscow that drew up to 100,000 people before March's vote that handed Putin a third presidential term.
In July, the lawyer was charged with the theft of half a million dollars from a state-owned timber company. Earlier this month, Navalny and his brother were charged with defrauding a transportation company of about $1.8 million.
The opposition leader dismissed the accusations as politically motivated, and pointed to the fact that there was no injured party in either of the cases.
Leonid Gozman, a former senior figure at the Union of the Right Forces, was quoted by the Interfax news agency, as denying reports of fraud at his party.
"This is another provocation, total nonsense," he said.
Navalny tweeted "that's enough," referring to the slew of criminal cases against him.

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Pope lights Christmas candle in his Vatican window

VATICAN CITY (AP) — Pope Benedict XVI has lit a Christmas peace candle set on the windowsill of his private studio.
Pilgrims, tourists and Romans gathered below in St. Peter's Square for the inauguration Monday evening of a Nativity scene and cheered when the flame was lit.
Later, he will appear in St. Peter's Basilica to lead Christmas Eve Mass. The ceremony begins at 10 p.m. (2100 GMT) instead of the midnight start time, which was changed at the Vatican years ago to let the pontiff rest before a Christmas Day speech to be delivered from the basilica's central balcony.

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Pope leads a packed Christmas Eve Mass

VATICAN CITY (AP) — Heralded by the blare of trumpets, Pope Benedict XVI is presiding over Christmas Eve Mass in a St. Peter's Basilica packed with tourists, Italians and other faithful.
The ceremony began at 10 p.m. (2100 GMT) Monday night instead of the traditional midnight start time. The schedule was changed at the Vatican years ago to let the pontiff rest before he is to deliver a Christmas Day speech hours later from the basilica's central balcony.
A smiling Benedict, dressed in gold-colored vestments, waved to photo-snapping pilgrims and applauding church-goers as he glided up the center aisle toward the ornate main altar of the cavernous basilica on a wheeled platform guided by white-gloved aides. The platform is employed to save the 85-year-old pontiff's energy.
As a men's choir chanted, Benedict sprinkled incense around the altar, and wished the faithful "peace" in Latin.
A few hours before Mass, Benedict lit a Christmas peace candle and set it upon the windowsill of his studio window overlooking St. Peter's Square.

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Twitter and Nielsen pair up to publish new "social TV" ratings

 Nielsen Holdings NV, the television viewership measurement company, said on Monday it will partner with Twitter to publish a new set of ratings that measure chatter on Twitter about TV programming.
The new measurement, dubbed the "Nielsen Twitter TV Rating," seeks to tap into the stream of viewer commentary and armchair musings generated on "second screens" - the smartphones and tablets perched on Twitter users' laps while they watch, say, Monday Night Football or the latest episode of "Homeland" on their TVs.
The new ratings, to be launched next fall, arrive at a moment when media and advertising industry executives say they are observing a shift in TV viewing habits that include the rise of "second screen" use.
But significant questions remain for advertisers over how best to interpret the data and whether a Twitter ratings system is meaningful at all.
In September, Nielsen ratings showed that TV viewership for Viacom Inc's MTV Video Music Awards, which coincided with the Democratic National Convention, plummeted by more than 50 percent from a year ago. Yet social media chatter tripled, according to the research firm Trendrr.
Brad Adgate, an analyst at Horizon Media, said advertisers will view the Twitter ratings as a useful layer of information about a show's popularity, but it is "not going to be close to the currency" of existing ratings metrics.
"It lets producers and creative directors know if the storyline is working, like a huge focus group," Adgate said. "But I don't think you can translate comments to ratings for a show. Right now I think the bark right now is bigger than its bite."
The new ratings will measure the number of people discussing a show on Twitter, as well as those who are exposed to the chatter, to provide the "precise size of the audience and effect of social TV to TV programming," Nielsen said.
"As the experience of TV viewing continues to evolve, our TV partners have consistently asked for one common benchmark from which to measure the engagement of their programming," Chloe Sladden, Twitter's vice president of media, said in a post on the company blog on Monday. "This new metric is intended to answer that request, and to act as a complement and companion to the Nielsen TV rating."
Mark Burnett, executive producer of NBC's hit "The Voice," argued that advertisers should value programs that can attract a high level of social media engagement from viewers. Deeply embedded social media elements, such as live Twitter polls, were critical in driving "The Voice" to the top of the Tuesday night ratings among viewers between 18 to 49, Burnett said.
"If you're an advertiser, wouldn't you want to know whether people are watching this show passively or if they're actively engaged in the viewing experience?" Burnett said. "Five years from now this will make traditional television ratings seem archaic."
For Twitter, the partnership with a recognized measurement company like Nielsen emphatically punctuates a year-long effort by its media division to bring second-screen usage into the mainstream.
Twitter's convergence with television has been on display during sporting and major news events, which have provided some of the biggest viewership moments for both broadcasters and the social media company.
During the Summer Olympics in London, Twitter set up a page for the event that displayed photos from inside an event venue or athletes' tweets to complement what was being broadcast on NBC. Advertisers like Procter & Gamble Co, for instance, which advertised heavily during the Games, tried to bridge the two mediums by airing an ad on TV, then sending out a tweet soliciting viewer feedback about the ad.
As news organizations tallied votes on election night in the United States on November 6, worldwide Twitter chatter hit a peak of more than 327,000 per minute, the company said this month.

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Florida man sentenced to 10 years in "hackerazzi" case

 A Florida man who pleaded guilty to hacking into the email accounts of celebrities to gain access to nude photos and private information was sentenced to 10 years in prison by a federal judge in Los Angeles on Monday.
Former office clerk Christopher Chaney, 36, said before the trial that he hacked into the accounts of film star Scarlett Johansson and other celebrities because he was addicted to spying on their personal lives.
Prosecutors said Chaney illegally gained access to email accounts of more than 50 people in the entertainment industry, including Johansson, actress Mila Kunis, and singers Christina Aguilera and Renee Olstead from November 2010 to October 2011.
Chaney, who was initially charged with 28 counts related to hacking, struck a plea deal with prosecutors in March to nine felony counts, including wiretapping and unauthorized access to protected computers.
"I don't know what else to say except I'm sorry," Chaney said during his sentencing. "This will never happen again."
Chaney was ordered to pay $66,179 in restitution to victims.
Prosecutors recommended a 71-month prison for Chaney, who faced a maximum sentence of 60 years.
TEARFUL JOHANSSON
Prosecutors said Chaney leaked some of the private photos to two celebrity gossip websites and a hacker.
Johansson said the photos, which show her topless, were taken for her then-husband, actor Ryan Reynolds.
In a video statement shown in U.S. District Court in Los Angeles, a tearful Johansson said she was "truly humiliated and embarrassed" when the photos appeared online, asking Judge S. James Otero to come down hard on Chaney.
Prosecutors said Chaney also stalked two unnamed Florida women online, one since 1999 when she was 13 years old.
Chaney, a native of Jacksonville, Florida, was arrested in October 2011 after an 11-month FBI investigation dubbed "Operation Hackerazzi" and he continued hacking after investigators initially seized his personal computers.
Shortly after his arrest, Chaney told a Florida television station that his hacking of celebrity email accounts started as curiosity and later he became "addicted."
"I was almost relieved months ago when they came in and took my computer ... because I didn't know how to stop," he said.

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Massachusetts fines Morgan Stanley over Facebook IPO

- Morgan Stanley , the lead underwriter for Facebook Inc's initial public offering, will pay a $5 million fine to Massachusetts for violating securities laws governing how investment research can be distributed.
Massachusetts' top securities regulator, William Galvin, charged on Monday that a top Morgan Stanley banker had improperly coached Facebook on how to disclose sensitive financial information selectively, perpetuating what he calls "an unlevel playing field" between Wall Street and Main Street.
Morgan Stanley has faced criticism since Facebook went public in May for revealing revised earnings and revenue forecasts to select clients before the media company's $16 billion initial public offering.
This is the first time a case stemming from Morgan Stanley's handling of the Facebook offering has been settled.
Facebook had privately told Wall Street research analysts about softer forecasts because of less robust mobile revenues. A top Morgan Stanley banker coached Facebook executives on how to get the message out, Galvin said.
A Morgan Stanley spokeswoman said on Monday the company is "pleased to have reached a settlement" and that it is "committed to robust compliance with both the letter and the spirit of all applicable regulations and laws." The company neither admitted nor denied any wrongdoing.
Galvin, who has been aggressive in policing how research is distributed on Wall Street ever since investment banks reached a global settlement in 2003, said the bank violated that settlement. He fined Citigroup $2 million over similar charges in late October.
"The conduct at Morgan Stanley was more egregious," he said in an interview explaining the amount of the fine. "With it we will get their attention and begin to take steps in restoring some confidence for retail investors to invest."
Galvin also said that his months-long investigation into the Facebook IPO is far from over and that he continues to review the other banks involved. Goldman Sachs and JP Morgan also acted as underwriters. The underwriting fee for all underwriters was reported to be $176 million at the time, or 1.1 percent of the proceeds.
As lead underwriter, Morgan Stanley took in $68 million in fees from the IPO, according to a Thomson Reuters estimate.
Massachusetts did not name the Morgan Stanley banker in its documents but personal information detailed in the matter suggest it is Michael Grimes, a top technology banker who was instrumental in the Facebook IPO.
The report says the unnamed banker joined Morgan Stanley in 1995 and became a managing director in 1998, dates that correlate with Grimes' career at the firm. It also says the banker works in Morgan Stanley's Menlo Park, California, office, where Grimes also works.
Grimes did not immediately respond to a request for comment, and was not accused of any wrongdoing by name.
The state said the banker helped a Facebook executive release new information and then guided the executive on how to speak with Wall Street analysts about it. The banker, Galvin said, rehearsed with Facebook's Treasurer and wrote the bulk of the script Facebook's Treasurer used when calling the research analysts.
A number of Wall Street analysts cut their growth estimates for Facebook in the days before the IPO after the company filed an amended prospectus.
Facebook's treasurer then quickly called a number for Wall Street analysts providing even more information.
The banker "was not allowed to call research analysts himself, so he did everything he could to ensure research analysts received new revenue numbers which they then provided to institutional investors," Galvin said.
Galvin's consent order also says that the banker spoke with company lawyers and then to Facebook's chief financial officer about how to prove an update "without creating the appearance of not providing the underlying trend information to all investors."
The banker and all others involved with the matter at Morgan Stanley are still employed by the company, a person familiar with the matter said.
Retail investors were not given any similar information, Galvin said, saying this case illustrates how institutional investors often have an edge over retail investors.

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ARM security improvement to speed mobile e-commerce

 British chip designer ARM Holdings and its partners Gemalto and Giesecke & Devrient have launched a new security standard for smartphones that can speed up e-commerce transactions.
Trustonic, a joint venture between the companies formed in April, said the security standard could be built into every level of a device, from the chip through the operating system to applications.
Ben Cade, Trustonic's chief executive, said it would eliminate the need for third-party devices, like bank card readers and secure ID tags, and enable content to be shared easily between devices.
He said the technology could reduce the time needed for an e-commerce transaction on a smartphone to seven seconds from the two and a half minutes typical today.
"It will enable us to trust our smart connected devices to protect us as they deliver essential services and innovative user experiences," he said.
Security is becoming increasingly important for smartphone users as more operations move from PCs to mobile devices.
Trustonic has signed up partners ranging from chipmakers NVIDIA and Samsung Electronics to payments company Mastercard and content provider 20th Century Fox Home Entertainment, Cade said.

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Online shopping to breathe new life into run-down sheds

 Owners of run-down warehouses on the edge of European cities could be sitting on goldmines because online shopping will force firms to seek distribution sites closer to customers who think speedy delivery is the norm.
In an increasingly fierce market where the likes of Amazon and Tesco pledge next-day or same-day delivery in specific time slots, warehouse rents could rise 40 percent over the next decade, property consultant CBRE said.
"Your industrial estate (near heavily populated areas) is the high street of the future," said Jonathan Holland, senior manager of Legal & General Property's industrial fund, which has 770 million pounds ($1.25 billion) under management.
"We are very much looking at owning warehouses around major conurbations."
Some 43 percent of European Union citizens shop online, the European Commission said in February, up from 26 percent six years ago. They were expected to fuel a 12-15 percent growth in online sales across the region over the next five years, Forrester Research predicted.
Meanwhile, falling sales in austerity-hit Britain have forced retail property values down 28 percent since end-2007, data from Investment Property Databank showed. Values in euro zone countries fell 5 percent over the same period, CBRE said.
The yield, or annual rent as a percentage of the property value, on an industrial warehouse in a good location in Europe was 7.8 percent at the end of September compared with 5.8 percent for offices and 5.2 percent for shops, CBRE said.
Industrial yields depend more on lease length and the financial strength of the tenant than location, compared with offices or shops, and would "edge downwards" where demand from retailers was strong, CBRE said.
Retailers currently favor large sites in locations away from big population centers but with good transport links.
Amazon's huge warehouses include sites in Dunfermline, Scotland and Rheinberg, Germany while Marks & Spencer will open a warehouse the size of 11 soccer fields in Castle Donington, Leicestershire, next year.
That is changing, said Amaury Gariel, managing director of CBRE's European industrial logistics team.
Places such as Croydon, 16 kilometers south of central London, strewn with empty office blocks and suffering high unemployment, and Créteil, a scruffy suburb 19 km southeast of Paris, are examples of areas that could be targeted as they are close to major highways and large local workforces, Gariel said.
Warehouse rents at such sites could rise 20-40 percent over the next decade, he said, citing the greatest demand in areas near the biggest European cities such as Amsterdam, London and Paris for sites that have typically been used by mail delivery firms and food distributors.
A tendency by governments to prioritize such areas for homes would squeeze supply and push prices higher, he said.
Retailers and property investors are at "a tipping point" in waking up to the changing real estate map for distribution points in Europe, Holland said.
Amazon is on the hunt for about 20 sheds close to British cities while Asda and Tesco are opening so-called 'dark stores' - distribution centers which look like supermarkets on the inside but are closed to customers - across Britain.
Industrial developer Prologis has bought a significant number of such sites near large towns and cities, such as Milton Keynes in Britain and Hannover in Germany, to meet future demand, European president Philip Dunne told Reuters.
Retailers face obsolescence unless they recognize how the type of property they rent needs to change, Gariel said.
"We are on the first page of the story regarding new ways to distribute goods. What happens if retailers do not recognize it? Just look at what happened to the fax and the telegram.

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