Archive for: December 2012

Payment Protection Insurance Claim Woes Force HSBC to Set Aside A Further £500m

Dec. 30 Finance no comments

The PPI scandal has taken a further toll on the HSBC bank as it has now set aside 500 million pounds to deal with the payment protection insurance scandal as well as additional allegations being thrown its way by the American government. These additional allegations are potentially more disastrous for the bank’s fragile reputation.

Serious accusations were brought against the bank by the US government recently, causing HSBC to set aside over 1.5 billion American dollars to deal with any ensuing scandal. They have been accused of unknowingly assisting drug cartels and rogue states by allowing them to use the US arm of the bank to launder billions of pounds. No additional details as to how this was done – including any specifics – were divulged, but the financial institution’s reputation is already taking a serious hit. These are very serious claims and HSBC are reacting accordingly by using £500 million to cover the fines they will be hit with by the US authorities. There is still no agreement as to how much the bank will have to pay, but when all is said and done the amount could be considerably higher.

As if this new scandal wasn’t enough the bank has added 220 million pounds to their hefty payment protection insurance bill. Because they were mis-selling payment protection insurance at such a large rate they needed to increase the amount they had earmarked to compensate those who deserved refunds. Their bill has amassed to much more than they expected, so much so that with this additional £220 million they have now spent £1.2 billion on repaying payment protection insurance claims.

Between the PPI scandal and these new money-laundering accusations, HSBC’s pre-tax profits have decreased over 50 percent in the most recent three-month period. This newly projected profit of £2.2 billion is being attributed to the value of their current debt as well as the US government’s claims.

Halo 4 Beats Blockbuster Earnings in 24 Hours

Dec. 30 Entertainment no comments

If anyone had doubt that video games were the new film, Halo 4 easily proved them wrong this week. The newest entry into the legendary first-person shooter series brought in an astounding $200 million within 24 hours of its launch. This greatly surpassed first-day numbers of recent cinema blockbusters, including the new James Bond film “Skyfall” which only raised $89 million in the box office in its first weekend.

Halo 4, which marks the beginning of a new trilogy in the series, is developed by 343 Industries rather than Bungie, the company that many fans are accustomed to. Despite this, Microsoft believes the game will bring in $300 million worldwide during its first week. If this does happen, this will make the game the biggest launch in the history of the series. In fact, the series have already sold more than 46 million units since the first in the series was released in 2001. To the game’s credibility, fans have collectively spent over 30 million hours playing Halo 4 in the past week alone.

Given the incredible response to Halo 4′s release, it seems unlikely that it will have any serious competition this year for the top-selling entertainment release. However, the launch of Call of Duty: Black Ops 2, the latest in Activision’s series of popular first-person shooters, will certainly give Halo 4 a run for its money. Last year’s installment, Call of Duty: Modern Warfare 3, made $400 million in its first day and reached $775 million by day five. The market has proven that the most commercial video games are online-based first-person shooters.

Although video game sales have fallen this year coinciding with the lack of great releases, Call of Duty: Black Ops 2 and Halo 4 should boost overall video games sales immensely. And since the two series are in constant competition, they will continue to boost the gaming market by releasing great titles for years to come.

UK to Introduce ‘DNA Mapping’

Dec. 10 Health no comments


Prime Minister David Cameron has unveiled plans to introduce DNA-mapping – in which 100,000 patients with cancer or rare diseases will have their details held on a national database – with a view to keeping everyone’s DNA on record ‘in the near future’. The move will raise great concerns among many people, and MP’s, who are against such a database on the grounds of possible abuse. However, Mr Cameron believes it is a necessary move to help the NHS deal with problems; he said:

“By unlocking the power of DNA data, the NHS will lead the global race for better tests, better drugs and above all better care. We are turning an important scientific breakthrough into a potentially life-saving reality for NHS patients across the country. If we get this right, we could transform how we diagnose and treat our most complex diseases not only here but across the world, while enabling our best scientists to discover the next wonder drug or breakthrough technology.”

Controversy is likely thanks to the sensitive nature of the information involved. The latest reports into the system state that mapping the human genome will allow for personalised treatments, and there are plans for 100,000 patients to enter the database over the next five years.

Personalised Medicine ‘For All’

The prospect of personalised medicine for everybody, thanks to the DNA mapping project, is very real, according to Sir John Bell, who as well as being a professor of Medical Sciences at Oxford is also an advisor to the government on the subject of genetics. He explained:

“The price of genome sequencing has been falling off a cliff. It has fallen by 100,000-fold in 10 years. We are headed for £100 a genome. That will happen in the very near future. Genetics is a key component of all common diseases. There is a possibility that this will help in a whole variety of ways including the use of new drugs.”

The concerns from some consumer groups are that the information held could be sold, and it could lead to private medicine firms charging people for medicine in the event they become ill. The project is, therefore, bound to meet with resistance from human rights groups. However, it is easy to see where the benefits will be, and with personalise medicine a very real prospect those suffering from complex and rare illnesses may be willing to take advantage of the situation.

All Blacks Stunned by England Win

Dec. 03 Sport no comments


England’s emphatic victory over New Zealand at the weekend was a major sporting achievement that even the most optimistic Rugby Union fan could not have predicted. The Twickenham crowd were treated to an outstanding display with the home team dominating both up front and behind. Stuart Lancaster can take great pride in honing a side that never looked like losing once play had begun, and that simply tore apart a strangely lacklustre All Blacks team that struggled throughout. The New Zealand side duly came to the end of a 20 game unbeaten run.

Early Lead

England drove to an early lead in the second half thanks to the inspirational play of Owen Farrell, a man who can be credited with waking the team up and bringing them into the game. 15-14 was the score with half an hour to go, and even with England playing well onlookers could be forgiven for remaining confident that the mighty All Blacks would change gear and cruise ahead to victory. It didn’t happen; instead, England simply out-performed the New Zealand side in a manner that was both refreshing and exciting to witness, and came home 38-21 – a resounding victory in every way.

Farrell to the Fore

Farrell’s kicking and his one to one play with Dan Carter, a man expected to overshadow him, was the key to a great game, and English rugby can now stand proud once more. Narrow defeats against Australia and South Africa in recent weeks had not been promising, but this time the team seemed to simply get on with it and make it happen. With the 2015 World Cup to be held in England this was a timely victory, and one that means the host nation can be considered genuine contenders if such form is to continue.