BBC News - Google in privacy policy changes across its services

Google has changed its privacy policy, streamlining it across its multiple services including search, email, video and social networking sites.

Google has faced privacy concerns from regulators over its social networking sites

More than 60 different policies will be combined into one that will go into effect 1 March, the company said.

Google said the new policy will give people more relevant search results and help advertisers find customers.

Google has previously faced criticism over the sharing of users data.

"We're rolling out a new main privacy policy that covers the majority of our products and explains what information we collect, and how we use it in a more readable way," said Alma Whitten, Google's director of privacy, product and engineering.

The single privacy policy will apple to Google search, Gmail, YouTube and Google+, its social networking site.

The main change applies to users who have Google accounts.

"If you're signed into Google, we can do things like suggest search queries, or tailor your search results, based on the interests you've expressed in Google+, Gmail and YouTube," the company said, explaining the changes.

The revision comes after Google's previous attempt at social networking, Buzz, was shut down.

The company was criticised for inadvertently revealing users' most e-mailed contacts to other participants through the Buzz platform.

Last year, Google and the Federal Trade Commission reached a settlement to prevent Google from misrepresenting how it uses personal information and from sharing a user's data without approval.

Google said it had been in touch with regulators over these latest changes to its privacy policy, which will apply globally, according to the Associated Press news agency.

BBC News - IMF: Global economy 'in danger zone' over euro crisis

The world's economy is "deeply into the danger zone" because of risks from the eurozone, the International Monetary Fund (IMF) has said.

Jose Vinals, IMF: "A failure to address underlying tensions could precipitate a global crisis"

The IMF predicts the global economy will grow by 3.25% in 2012, down from an earlier forecast of 4%.

The growth forecast for the UK economy has been cut to 0.6% from 1.6%.

But the eurozone is set for a "mild recession" in 2012, with GDP expected to shrink by 0.5%, compared with a previous forecast of 1.1% growth.

Shadow chancellor Ed Balls called for the government to rethink its austerity plan in the light of the IMF estimates.

"Last year the IMF was clear that if growth undershot expectations then the British government should reconsider the pace of spending cuts and tax rises which choked off our recovery well before the recent eurozone crisis, pushed up unemployment and has seen borrowing forecasts soar," said Mr Balls.

"Now the IMF has slashed their growth forecasts and confirmed that growth in Britain will indeed be much lower than they expected. And they have called on countries with low interest rates, like the UK, to reconsider the speed of their spending cuts and tax rises."

In response, the government said the IMF predictions matched those made by the independent Office of Budgetary Responsibility, which informs government economic policy.

"The IMF has downgraded its growth forecasts for all the major economies, reflecting the deterioration in the global outlook since their last forecasts in September," said a Treasury spokesperson.

"Their expectations for UK growth are in line with those of the Office of Budgetary Responsibility, and stronger than for the other major European economies."

Eurozone growth

Growth estimates have been reduced for the main eurozone countries, including Germany, which is widely seen as the powerhouse of the region.

Germany is forecast to grow 0.3% in 2012, down from the 1.3% originally predicted in September.

France is expected to show 0.2% growth in 2012, down from 1.4%.

However, the IMF stands by its 1.8% growth prediction for the US, based on recent strong domestic data on jobs and manufacturing.

Risk of 'spillovers'

Emerging markets, such as central and eastern Europe and Asia, could also be hit by the eurozone crisis.

The IMF said: "While these markets have been quite resilient to shocks and developments in major economies in the past year, recent indicators have weakened significantly and the general business climate has deteriorated."

The IMF said Europe's most pressing challenge was to restore confidence and put an end to the crisis in the euro area.

It added that world economies needed "decisive and consistent policy action" to improve the current financial environment.

"There are three requirements for a more resilient recovery: sustained but gradual adjustment, ample liquidity and easy monetary policy, mainly in advanced economies, and restored confidence in policymakers' ability to act."

Separately, EU economic affairs commissioner Olli Rehn said he expected a "moderate recession" across Europe in the first half of this year.

On Monday, IMF chief Christine Lagarde warned the global economy could fall into an economic spiral reminiscent of the 1930s unless action was taken on the eurozone crisis.

In its update to its September report, the IMF warned that the "United States and other advanced economies are susceptible to spillovers from a potential intensification of the eurozone crisis".

BBC News - Trust in government has 'suffered a severe breakdown'

Public trust in government has suffered a severe breakdown across the world, according to the Edelman Trust Barometer.

Governments have seen a dramatic decline in trust during 2011

Governments have been blamed for the financial and political chaos of 2011.

In 17 of 25 countries surveyed governments are now trusted to do what is right by less than half those questioned.

Overall trust in government fell by nine percentage points to 43%.

Trust in business also fell, from 56% to 53%.

Although businesses saw less severe declines in trust, countries at the heart of the eurozone saw sharper decreases.

Businesses in Spain, France and Germany saw trust decline by 21, 20 and 18 percentage points respectively.

China was the only country to see a significant rise in trust in businesses, up from 61% to 71%.

Trusting 'me'

Richard Edelman, president and CEO of Edelman, said: "Business is now better placed than governments to lead the way out of the trust crisis".

"But the balance must change so that business is seen both as a force for good and an engine for profit."

Alongside these steep declines in trust in institutions such as governments or businesses, the survey highlights a dramatic switch in those whom people say they now trust.

A "person like me" is now one of the top three credible sources, said those surveyed, only trailing academics and technical experts.

Social networking, microblogging and content-sharing sites saw the most dramatic percentage rises as trusted sources of information, jumping by 88%, 86% and 75%.

Despite these gains, traditional media and online search engines are still the most trusted sources of information for general news and information, says the survey.

Edelman's 2012 trust Barometer was released in the run-up to this year's World Economic Forum in Davos, where it will be presented in more detail.

Edelman's online survey sampled 25,000 respondents among the general population, with an over-sample of 5,600 "informed" people from the upper end of society - college-educated, with household income in the top quarter - across 25 countries.

BBC News - Iran: EU oil sanctions 'unfair' and 'doomed to fail'

Iran has said an oil embargo adopted by European Union foreign ministers over the country's nuclear programme is "unfair" and "doomed to fail".

Catherine Ashton: "There is no question that if Iran responds positively the sanctions can eventually be lifted"

The measures would not prevent Iran's "progress for achieving its basic rights", foreign ministry spokesman Ramin Mehmanparast said.

The sanctions ban all new oil contracts with Iran and freeze the assets of Iran's central bank in the EU.

The EU currently buys about 20% of Iran's oil exports.

"European officials and other countries which are under America's political pressure... should consider their national interests and not deprive themselves of Iran's oil to help US officials achieve their secret aims," Mr Mehmanparast added.

He accused the US of trying to create "problems with energy supply requirements in countries which are America's economic rivals".

US President Barack Obama has welcomed the EU sanctions, saying they show international unity against the "serious threat" posed by Iran's nuclear programme.

Warships on the move

The sanctions were formally adopted at a meeting of EU foreign ministers in Brussels on Monday.

Iran had "failed to restore international confidence in the exclusively peaceful nature of its nuclear programme", British Prime Minister David Cameron, French President Nicolas Sarkozy and German Chancellor Angela Merkel said in a joint statement.

"We will not accept Iran acquiring a nuclear weapon. Iran has so far had no regard for its international obligations and is already exporting and threatening violence around its region," the leaders added.

The measures were "another strong step in the international effort to dramatically increase the pressure on Iran", US Treasury Secretary Timothy Geithner and Secretary of State Hillary Clinton said in a statement.

Meanwhile, the International Atomic Energy Agency, the UN's nuclear watchdog has confirmed it is sending a team to Iran between 29 and 31 January "to resolve all outstanding substantive issues".

Last November the IAEA said in a report that it had information suggesting Iran had carried out tests "relevant to the development of a nuclear explosive device".

Tehran insists its nuclear programme is for energy purposes.

Earlier on Monday, the Pentagon said the US aircraft carrier USS Abraham Lincoln, as well as a British Royal Navy frigate and a French warship, had passed through the Strait of Hormuz at the entrance to the Gulf without incident, following Iranian threats to block the trade route.

Russian opposition

The EU said the sanctions prohibit the import, purchase and transport of Iranian crude oil and petroleum products as well as related finance and insurance. All existing contracts will have to be phased out by 1 July.

Investment as well as the export of key equipment and technology for Iran's petrochemical sector is also banned.

BBC Europe Editor Gavin Hewitt says it is one of the toughest steps the EU has ever taken.

EU foreign policy chief Catherine Ashton said the purpose of the sanctions was "to put pressure on Iran to come back to the negotiating table".

Earlier, UK Foreign Secretary William Hague said the embargo showed "the resolve of the European Union on this issue".

"It is absolutely right to do this when Iran is continuing to breach United Nations resolutions," he added.

But the Russian foreign ministry said it was a "deeply mistaken" move that would not encourage Iran to return to the negotiating table.

"It's apparent that in this case there is open pressure and diktat, aimed at "punishing" Iran," it said in a statement.

BBC Iran correspondent James Reynolds says the decision may damage the Iranian economy - but in itself it won't destroy it.

Iran sells most of its oil to countries in Asia. The EU and the United States are now working to persuade Asian countries to reduce their purchases from Iran as well.

Iran has already threatened to retaliate by blocking the Strait of Hormuz at the entrance to the Gulf, through which 20% of the world's oil exports pass.

The US has said it will keep the trade route open, raising the possibility of a confrontation.

Late last year Iran conducted 10 days of military exercises near the Strait of Hormuz, test-firing several missiles.

Oil prices have risen already because of the increasing tension and the expected impact of an EU ban on oil supplies to Europe.

A French warship also accompanied US and UK naval vessels through the Strait of Hormuz on Monday

BBC News - Economic gap between UK cities 'widening'

The gap between the economic performance of cities across the UK is widening, a report has said.

The report said cities such as Hull would find it more challenging in a weak economy

The difference between the number of people claiming Jobseeker's Allowance in Hull and in Cambridge has nearly doubled since the start of 2008.

Six times as many are claiming in some parts of Rochdale than in Cambridge.

Research group Centre for Cities said the private sector's struggle to create enough jobs to aid growth was "playing out very differently across UK cities".

The gap in the claimant count rate between Hull and Cambridge had increased from 3.2% in February 2008 to 6.1% in November 2011, the report said.

Meanwhile, the area of Rochdale with the highest number of claimants had 30.3% of people on the benefit, while the area of Cambridge with the highest rate was 5.0%.

The report said that cities with less dynamic private sectors, such as Hull, Doncaster and Newport, would find it more challenging to offset the weak national economy and the ongoing shrinkage of the public sector.

'Tailored policy'

It said cities that had performed well, such as Edinburgh, Cambridge and London all had strong private sectors, and high numbers of skilled residents and "knowledge workers" - those who work in professions such as law, accountancy and finance.

It highlighted Milton Keynes and Aberdeen as well placed to drive the national economic recovery as they had seen a large number of business start-ups and were highly innovative, with significant numbers of patents registered.

Last week, official figures showed the UK's unemployment rate had risen to the highest level for 16 years.

"The gap between cities is widening," said Alexandra Jones, chief executive of Centre for Cities.

"This makes it vital that government policy is tailored to meet the needs of each city rather than one-size-fits-all. What is right for Brighton and Reading will not be right for Dundee and Middlesbrough."

The Local Government Association (LGA) said the report highlighted the differences in how cities were dealing with the tough economic climate.

"Councils strongly support the premise that government policy must be tailored to meet the needs of each individual city," said Peter Box, chairman of the LGA's economy and transport board.

BBC News - EU Iran sanctions: Nations poised to ban Iran oil imports

European Union foreign ministers are expected to announce a phased ban on the purchase of oil from Iran at a meeting on Monday in Brussels.

Tensions over Iran's nuclear programme are raising fears of a confrontation over oil supplies.

It would be the latest EU measure to be introduced in retaliation for Iran's nuclear programme.

The EU currently buys around 20% of Iran's oil exports.

Tehran denies that it is trying to develop nuclear weapons and says talks and not sanctions are the only way to resolve the dispute.

Meanwhile, the Pentagon said the US aircraft carrier USS Abraham Lincoln, as well as a British Royal Navy frigate and a French warship, have passed through the Straits of Hormuz at the entrance to the Gulf without incident in the wake of Iranian threats to block the trade route

'Substantial impact'

The EU foreign policy chief, Catherine Ashton, said on Friday that European countries remained open to diplomacy, even as sanctions were being imposed.

She said world powers had yet to receive a reply to an offer made to Iran in October to hold new talks.

EU diplomats agreed last Thursday to impose sanctions on Iran's central bank, but the potential impact of an oil embargo is more substantial.

The BBC's Iran correspondent, James Reynolds, says oil is the country's most valuable asset and sales helps to keep the Iranian government in money and power.

A decision by the EU to stop buying from Iran may damage the Iranian economy - but in itself it won't destroy it, our correspondent says.

Rising tensions

Iran sells most of its oil to countries in Asia. The EU and the United States are now working to persuade Asian countries to reduce their purchases from Iran as well.

It is reported that the EU will immediately prohibit the signing of any new oil contracts with Iran and will bring in a ban on imports in July, to give members time to procure oil from other sources.

Iran has already threatened to retaliate by blocking the Strait of Hormuz at the entrance to the Gulf, through which 20% of the world's oil exports pass.

The US has said it would keep the trade route open, raising the possibility of a confrontation.

Late last year Iran conducted 10 days of military exercises near the Strait of Hormuz, test-firing several missiles.

Oil prices have risen already because of the increasing tension and the expected impact of an EU ban on oil supplies to Europe.

BBC News - Bank of America returns to profit

Bank of America has reported a $2bn (£1.2bn) profit for the three months to the end of 2011, compared with a $1.2bn loss in the same period in 2010.

Bank of America was one of the worst performers on Dow Jones Industrial Average index of leading companies in 2011

It signals continued recovery for the US' second biggest lender.

For the full year, the company reported net profits of $1.4bn compared with a net loss of $2.2bn in 2010.

Meanwhile Morgan Stanley, the world's largest broker, reported a fourth-quarter loss of $250m compared with a profit of $836m a year earlier.

Despite the loss, the results at Morgan Stanley beat analysts' expectations since it was able to increase its share of the equity trading market in the period.

For the full year, Morgan Stanley said its net revenues were $32.4bn compared with $31.4bn in 2010.

Recent results from American banks have been mixed with Goldman Sachs announcing on Wednesday that it made 47% less in profits than in 2010 whilst Citigroup posted a 6% rise on the previous year.

Bank of America chief executive Brian Moynihan said: "We enter 2012 stronger and more efficient after two years of simplifying and streamlining our company."

"Reflecting a gradually improving economy," continued Mr Moynihan, "we saw solid business activity by companies of all sizes, with commercial and industrial loan balances rising."

Bank of America shares in New York rose 7.1% in early trading.

'Aggressive steps'

Bank of America was one of the worst performers on Dow Jones Industrial Average index of leading companies in 2011, losing 58% of its share value over the year.

The lender has been hit by lingering concerns about bad mortgage loans on its books in the wake of the 2008 sub-prime crisis when it was bailed out by the US government.

The bank has been building up its reserves, known as Tier 1 capital, to protect itself against the risk of further bad loans.

"Our fourth-quarter results reflect the aggressive steps we have been taking to strengthen the balance sheet and position the company for long-term growth," said chief financial officer Bruce Thompson in a statement.

"During the quarter, we significantly increased capital and liquidity. For 2012, our focus is to continue to build capital and liquidity and manage expenses."