The Russian government said household disposable income would also fall by as much as 2.8%

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The Russian government has warned the economy will fall into recession next year as Western sanctions, in response to its role in eastern Ukraine, and falling oil prices begin to bite.

Russia's economic development ministry estimates the economy will contract by 0.8% next year.

It had previously estimated the the economy would grow by 1.2% in 2015.

Russia's reliance on tax revenues from the oil industry makes it particularly sensitive to price movements.

Household disposable incomes are also forecast to decline by as much as 2.8%, compared with a previous estimate that they would grow by 0.4%.

The sharp revision in Russia's economic forecast is the first admission from the government that the economy will contract.

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Russia is a non-investible country for all but the bravest of hedge fund investors right now, and will remain in this category until both the rouble and oil stabilise at minimum”

Chris WeaferMacro-Advisory

"The current prognosis is based on a drop in GDP by 0.8% in 2015, against the previous prognosis of growth by 1.2%," deputy prime minister Alexi Vedev said.

Budget

On Monday, the rouble suffered its biggest one-day fall since 1998.

The currency slid almost 9% against the dollar before rallying after suspected central bank intervention. The currency has already lost 40% in value this year.

The Russian finance ministry has also not ruled out spending more than 500 billion roubles from the budget's Reserve Fund next year.

The 2015-2017 budget allows for spending of up to 500bn roubles (£5.9bn) next year from the Reserve Fund, but Maxim Oreshkin, head of the finance ministry's long-term strategic planning department, said it was possible the government could spend more to support the economy.

He added that if the average oil price were $80 per barrel in 2015, the finance ministry's forecast for a fall in GDP was in line with the economy ministry's prediction of a 0.8% contraction.

He also said that a scenario in which the oil price averaged $60 a barrel in 2015 was pessimistic, and at that price, the Russian economy would contract as forecast in the central bank's "stress scenario".

'Damage'

The bank published its stress scenario last month, saying that at $60 per barrel, GDP would decline by 3.5% to 4%.

"The real damage from the collapsing rouble and oil price is to investment and growth,'' said Chris Weafer, senior partner at Moscow-based Macro-Advisory, in a note to investors.

"Russia is a non-investible country for all but the bravest of hedge fund investors right now, and will remain in this category until both the rouble and oil stabilise at minimum."

The price of oil has fallen nearly 40% since the summer because of oversupply caused by rising US shale oil production.

Demand has also fallen, particularly in China, the world's second largest consumer of the commodity, where industrial production has slowed in recent months.

Last week, Opec ministers met to discuss a possible cut in oil production in order to stabilise the oil price, but the meeting broke up without agreement.

Opec secretary general Abdallah Salem el-Badri said: "There's a price decline. That does not mean that we should really rush and do something."

The fall in the oil price has been causing concern for several members of the oil cartel, as most require a price above $80 a barrel to balance their government budgets and many need prices to be above $100 a barrel.

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The FBI warns that the malware overrides data on computer hard drives

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The US Federal Bureau of Investigation (FBI) has warned that cyber-hackers have used malicious software to launch destructive attacks in the US.

A five-page confidential warning was issued to US businesses on Monday, according to Reuters news agency.

The software would make it impossible to recover any lost data, the FBI said.

The warning follows a confirmation from the FBI that it is investigating last week's hack into Sony Pictures Entertainment's network.

Sony Pictures was forced to shut down its corporate network in the attack and some of its unreleased films have also been leaked online.

But the warning from the US authorities did not name any victims that have been targeted.

Instead, it provided some technical details about the malicious software and advice on how to handle such an attack.

North Korea in the spotlight

There have been accusations that North Korea may have been responsible for the attack on Sony Pictures after the country's government described a film due to be released by the studio on Christmas Day as an "undisguised sponsoring of terrorism as well as an act of war".

The Interview, starring Seth Rogan and James Franco, tells the story of a CIA plot to assassinate the North Korean leader.

Pyongyang has written letters to the UN Secretary General and President Barack Obama asking for the film to be blocked, but when asked if it was involved in the cyber-attack on Sony, a spokesman only said "wait and see".

Sony has not accused North Korea of involvement and said it was investigating the source of the hacking.

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BestBuy's website was down but some shoppers had already bagged bargains in store on Thursday evening

The traditional scrum of sharp elbows was notably less intense on Black Friday in the US this year.

The crowds, gathering at the US's big shopping centres, appeared to have exhausted some of their shopping enthusiasm on Thursday.
As last year, many retailers had opened their doors early to try to pull shoppers in ahead of rivals.
"The consumer clearly enjoys shopping on Thanksgiving," said Target's chief executive, Brian Cornell.
And, when opening the New York Stock Exchange for Friday's shortened day of trading, he welcomed the way the holiday season "has moved from an event on Black Friday morning to a multi-day event."
Many shoppers headed straight to the shops whilst still digesting their Thanksgiving turkey on Thursday, forming queues outside Macy's by 6pm on what is becoming known as "grey Thursday".

Target boss Brian Cornell welcomed the shift towards earlier shopping when opening trading at the NYSE

Cyber shopping But if footfall was subdued, online sales came to the fore.
Wal-Mart said Thursday was its second-highest online sales day ever after last year's Cyber Monday, the first Monday in December when many people order items they'd like to arrive in time for Christmas.
BestBuy's website went offline after what the company said was "a concentrated spike in mobile traffic."
The hope for many retailers is that the slowly improving US economy, combined with lower petrol prices, could push consumers to buy more than they have in recent memory.
Black Friday has been the top sales day of the year since 2005, according to ShopperTrak which tracks data on stores globally, beating into second place the Saturday before Christmas when last-minute shoppers stock up on Christmas gifts.

As with last year, many stores chose to open a day earlier on what is now being called "grey Thursday"

However, that could change this year as Thanksgiving shopping and online sales eat into Black Friday's peak performance.
Shift to labour
The earlier start to holiday shopping has placed even more focus on the plight of workers who must often leave their families in order to help shops open on Thanksgiving.
Outside a Wal-Mart in northern New Jersey, nearly a hundred members of the OUR Wal-Mart campaign - a coalition of unions and Wal-Mart employees - protested what they said were unfair working conditions at the nation's largest retailer.

Labour organisers and Walmart workers staged protests at 1,600 locations on Friday

Surrounded by dozens of police officers in the brisk cold, they chanted slogans like "Wal-Mart, Wal-Mart you're no good, treat your workers like you should" and waved banners.
Inside the store, however, Wal-Mart representatives disputed their claims.
"They're really not representative of our associates at all. Our associates are in here working hard and they're excited to be here. This is the most fun day of all," a Wal-Mart spokesperson, Bill Wertz, told the BBC.

Wal-Mart's Bill Wertz said the views of the protestors outside weren't indicative of most workers

And as for shoppers whose habits the protestors were hoping to influence?
"It does affect my shopping affect my shopping, I told myself I wasn't going to purchase too much," says Gary Philip, a shopper walking into the store.
"But," he added, "I couldn't resist on getting a tree for a better price."
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Harvests were better than expected despite a weak start to the monsoon

India's economy grew by 5.3% in the July-to-September period from a year earlier, down from a rate of 5.7% in the previous quarter.

Although the rate was slower than earlier in the year, it was still better than many analysts had expected.
The figures cover the first full quarter under the government of Prime Minister Narendra Modi.
Both the service sector and agriculture performed better than anticipated, despite a weak start to the monsoon.
Investors were also encouraged by the news that the government is to cut its holdings in state-run banks, such as State Bank of India.
Interest rate cut "The GDP growth number is slightly better than we expected," said Shivom Chakrabarti, senior economist at HDFC Bank in Mumbai.
"Overall, the economy has bottomed out and there is a slow and modest recovery. Now the onus is on the government to boost growth by reviving the investment climate and get reforms moving."
Observers had predicted the economy would grow at a rate of just 5.1% in the quarter.
Despite the slightly stronger-than-expected figure, pressure is mounting on India's central bank, the Reserve Bank of India, to cut interest rates, possibly as early as the next policy review meeting on 2 December.
The benchmark interest rate has been kept at 8% since last January in an effort to curb inflation. India has a history of high inflation, but recently the rate dipped below 6%.
So far central bank governor Raghuram Rajan has resisted calls to lower interest rates to stimulate growth in Asia's third-largest economy.
Most analysts expect him to wait until the spring to change rates.

Consumer price inflation of ordinary food and goods has eased raising expectations of a cut in interest rates

Analysis: Sameer Hashmi, BBC India business reporter When Narendra Modi swept to power back in May he promised to revive the economy.
Since then leaders including David Cameron and Xi Jinping have led trade delegations to India.
Top chief executives like Mark Zuckerberg from Facebook and Microsoft's Satya Nadella have also visited.
Many international firms have announced investment plans and the Indian stock market has been soaring. All this excitement has been attributed to the 'Modi effect.'
But many had expected the government to unleash some big bang economic reforms by now, which hasn't happened.
Though they have taken some steps in that direction, the economy still faces some fundamental challenges especially in the energy and infrastructure sectors.
The government is in the process of addressing some of the concerns but most economists warn that the steps taken in the last few months will have an impact only in 12 to 18 months time.

Children carry coal to be crushed: Prime Minister Modi has promised to reform the coal sector

Bank sales On Friday, the government also confirmed its commitment to reducing some of its holdings in public sector banks, although the state will retain a majority holding.
The sale would raise about 891.2bn rupees ($14.4bn; £9.1bn).
Indian banks are saddled with high levels of bad debts and corporate governance issues and will require tens of billions of dollars of financial support over the next few years.
The government currently holds stakes ranging from 56% to 84% in 24 of India's state-run banks.
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Symantec researchers likened the bug to Stuxnet, a computer worm that targeted Iran's nuclear program

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A leading computer security company says it has discovered one of the most sophisticated pieces of malicious software ever seen.

Symantec says the bug, named Regin, was probably created by a government and has been used for six years against a range of targets around the world.

Once installed on a computer, it can do things like capture screenshots, steal passwords or recover deleted files.

Experts say computers in Russia, Saudi Arabia and Ireland have been hit most.

It has been used to spy on government organisations, businesses and private individuals, they say.

Researchers say the sophistication of the software indicates that it is a cyber-espionage tool developed by a nation state.

They also said it likely took months, if not years, to develop and its creators have gone to great lengths to cover its tracks.

Sian John, a security strategist at Symantec, said: "It looks like it comes from a Western organisation. It's the level of skill and expertise, the length of time over which it was developed."

Symantec has drawn parallels with Stuxnet, a computer worm thought to have been developed by the US and Israel to target Iran's nuclear program.

That was designed to damage equipment, whereas Regin's purpose appears to be to collect information.

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Japanese carmaker Nissan has reported a 25% increase in half-year profits as strong sales in North America helped to offset weaker demand elsewhere.

For the six months to September, Nissan reported net income of 237bn Japanese yen ($2.08bn; £1.3bn).

It said it had seen "strong demand" for its new products, with rising sales in its key market of North America.

Carmakers in Japan have also been helped by a weakening yen, which gives them an edge in export markets.

Sales forecast cut

Nissan sold 2.58 million vehicles in the six-month period, which was up 5.8% compared with the same period a year ago.

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"Nissan successfully overcame challenging market conditions in the first-half of the fiscal year, delivering solid revenues and profitability amid encouraging demand for our latest models," said chief executive Carlos Ghosn.

Nissan said it enjoyed "strong" sales growth in North America and had seen signs of "stabilisation" in western Europe.

"This offset slower demand in Japan and continued volatility in Russia and other emerging economies."

Japan's consumers are still recovering from a sales tax hike in April, while a slowdown in China, the world's largest car market, has also affected Nissan's sales on the mainland.

Nissan revised its full-year sales forecast down by 200,000 to 5.45 million reflecting lower than expected sales in China and emerging markets.

The Yokohama-based manufacturer makes some 60 car models under its brands, which include Nissan, Infinity and Datsun

Weaker yen

The yen continued to lose value this week after Friday's surprise decision from the Bank of Japan (BOJ) to expand its stimulus measures.

The move was made as the central bank continues to attempt to boost Japan's economy and lift inflation.

The weaker yen has helped bring down the cost of Japanese goods sold abroad, and Nissan said it would help sales in China and some other nations.

Nissan's chief competitive officer Hiroto Saikawa said that while some people were voicing concern about the yen's weakening, that "all in all we think it is positive for industry and the economy".

Earlier this year, Nissan reported a 10% rise in full-year profits, boosted by better sales, cost-cutting and a weaker yen.

The Yokohama-based car manufacturer, which is Japan's second largest, makes some 60 models under its brands including Nissan, Infinity and Datsun.

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India's tea industry employs millions of workers

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Workers at a tea plantation in eastern India have killed the owner during negotiations over a pay dispute.

The owner of the Sonali tea estate in West Bengal was dragged out of talks on Saturday. He died after being beaten up and stabbed by a crowd.

Police say Rajesh Agarwal had gone to pacify the workers who had reportedly not been paid for two or three months. Two men and five women have been held.

Many workers in India's tea plantations are malnourished and poorly paid.

Several incidents of attacks on tea executives by workers have been reported in recent years.

In 2012 a tea plantation owner and his wife were burned to death in the neighbouring state of Assam.

Indian is the world's second-largest tea producer after China.

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Global business confidence has slumped to a post financial crisis low

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Global business confidence slipped to five-year low in October, according to a survey of 6,100 companies.

The number of firms that expect business activity to be higher in the year ahead exceeded those that expected a decline by about 28%.

But, that net balance was lower than 39% in June and the lowest since the Markit Global Business Outlook Survey began in 2009.

Hiring and investment plans also dipped to post financial crisis lows.

"Clouds are gathering over the global economic outlook, presenting the darkest picture seen since the global financial crisis," said Chris Williamson, chief economist at Markit in a statement.

Long list of worries

The decline in optimism among businesses was due to a growing list of worries, according to the report.

Fears of a renewed downturn in the eurozone, the prospect of higher interest rates in the UK and US next year, along with geo-political risks from crises in Ukraine and the Middle East have all dented business confidence across the globe.

"A key factor that has held back economic growth in recent years has been the disappointing performance of major emerging market economies, and this looks set to continue, and perhaps even intensify, over the coming year," Mr Williamson added, citing that business optimism among the BRIC countries had sunk to its lowest since the financial crisis.

Russia was the biggest concern among the leading countries as "sanctions, a spiralling currency and uncertainty drove business expectations down sharply to a new low".

Most upbeat

On the bright side, UK companies were the most upbeat about the year ahead out of all the major countries surveyed in October.

That comes despite future business activity levels at its lowest since June 2013 for both the manufacturing and services sectors.

UK firms were also the most optimistic about hiring plans among major economies.

"[The optimism] suggests the UK will continue to outperform its peers in 2015, albeit with growth slowing from that seen in 2014," Mr Williamson said.

On the downside was a surprise downturn in the US, where optimism hit a new survey low as the service sector saw a "dramatic" decline.

"US growth therefore looks likely to have peaked over the summer months, with a slowing trend signalled for coming months," he said.

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The social news site Buzzfeed is growing at a scary rate, racing past serious news services like the New York Times - and the BBC - as the way younger people hear about what's happening around the world.

It's even announced that it will be launching French, Spanish and Portuguese editions, using students and a language teaching platform called Duolingo to translate stories.

So, in the spirit of a Buzzfeed list here are seven reasons why we should love/hate it:

1. It's popular with the kids, get over it…..

With 85 million visitors in August, it is fast becoming one of the most popular sites on the web. And look at where more than a billion Facebook users get their news - Buzzfeed is top of the list when it comes to stories shared by users, ahead of the Huffington Post, CNN and the BBC.

And as the founder Jonah Peretti put it in a memo to staff, it's reaching an important audience:

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"The world needs sustainable, profitable, vibrant content companies staffed by dedicated professionals; especially content for people that grew up on the web, whose entertainment and news interests are largely neglected by television and newspapers."

2. Yeah, but reaching them with what?

"This Baby Elephant Being Reunited With His Dad is The Cutest Thing You'll See Today" and "9 celebrity tweets you missed today" - if that is the future of journalism, heaven help us all…

3. But Buzzfeed is growing up…

Some other Buzzfeed headlines today: "The Big Winner in JP Morgan's Earnings - lawyers", "Why These Three Economists Won The Nobel Prize", and "Blackberry's Last Ditch Attempt To Win You Over is Pretty Hilarious". There's business, technology and politics on Buzzfeed, and it's recruiting some serious journalist talent in the US and in London.

4. But clicks come first…

Buzzfeed's founder, Jonah Peretti

When I met Jonah Peretti earlier this year and suggested that the cute and silly stuff was just part of a long term plan to fund serious investigative journalism he laughed. "You don't get it," he said. "We love the funny stories - it's what we're about." And some of the daft stuff is brilliantly done. Look at "The 29 Stages of A Twitterstorm."

But serious or silly, it is all about clicks - any Buzzfeed writers who can't build an audience for their stories will soon be heading for the exit.

5. Amazingly, it's making money….

The hardest trick in the modern media is making online news profitable - just ask anyone from The Guardian to The Sun. But as well as employing more than 400 people - technologists, journalists, marketing types - Buzzfeed is, according to Jonah Peretti, now making money. It was "accidentally" profitable once before in 2011, and then spent lots on expansion. Now it looks well placed to become a media powerhouse and without loads of intrusive advertising…

6. Ah, but it mixes advertising and content…

Buzzfeed's clever trick is to teach advertisers to write Buzzfeed-like stories which promote their brands without in-your-face messages. On this morning's Today programme Jonah Peretti insisted that there was a clear division between "church and state", advertising and content. That may not be anything like as clear to Buzzfeed readers who click on "13 Signs You're Addicted To Fashion Blogs" without noticing that is sponsored by Blackberry UK. Mind you, whether that does any good to Blackberry is another matter entirely…

7. And here's a cute picture of a dog with a bandaged paw…..

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 Aereo boss Chet Kanojia said the Supreme Court ruling created created "regulatory and legal uncertainty"

Aereo, the TV streaming upstart meant to take on US cable firms, has filed for bankruptcy protection in the wake of a Supreme Court decision that threw the company's legality into doubt.

That decision "effectively changed the laws that had governed Aereo's technology," said Aereo chief executive Chet Kanojia in a statement.

Aereo used small antennas stored in warehouses to capture local TV signals.
Subscribers could stream those signals via Aereo for around $8 per month.
However, US cable companies argued that the company was exploiting a loophole in US law regarding the transmission of local television signals and violating their intellectual property.
In June, the US Supreme Court effectively agreed with those broadcasters - which included CBS, ABC, NBC and Fox - and ruled Aereo's business violated US copyright law.
In an opinion written by Justice Stephen Breyer, the court ruled Aereo's service was not distinct from what cable and satellite companies offered.
"Aereo is not simply an equipment provider... Aereo sells a service that allows subscribers to watch television programmes, many of which are copyrighted, almost as they are being broadcast," he wrote.
The company suspended its service in the wake of the ruling.
According to its bankruptcy filing in a New York court, Aereo had assets of $20.5m and debt of $4.2m.
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Doug Smart says KFC has had to take special steps to appeal to South Africa's very different consumers

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Doug Smart, KFC's general manager in Africa, is mulling the challenges his company faces in appealing to a cross-section of South Africans one morning at a restaurant in Johannesburg.

"The biggest challenge for us is to stay attractive to both families with low incomes as well as rich business people in their BMWs," he says.

Twenty years after the end of apartheid, the disparities in wealth in South Africa are still stark and the fractured market represents a particular challenge for foreign businesses seeking to succeed.

"A large part of our growth is coming out of small towns and townships, where we have opened many of our new restaurants," says Doug,

KFC has given customers the option of taking the drinks out of their packaged meal deal or "combo", giving it a price point that more South Africans would be attracted to and has introduced local dishes, such as the popular porridge-style recipe known as "pap".

It is a strategy that seems to be working, as KFC is the second-most powerful foreign brand in the country, according to research undertaken for the BBC.

Top commercial brands

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Breaking into a new market is never easy but many have achieved massive success far from home.

The BBC's global business team meet those who have managed to break into the fast growing global markets and find out what secrets they have learnt about how to succeed in them.

• How to succeed in...

Though South Africa lost its position as Africa's biggest economy to Nigeria earlier this year, it is still seen as the springboard into the rest of the continent by many multinationals.

Its middle class is also growing rapidly, the number of individuals with an annual income of 25,000 rand (£1,400) doubled between 1993 and 2013.

Winning in the country is a big prize for those looking for growth in emerging markets, with potential for big increases in consumer demand in the coming decades.

The global consultancy Millward Brown analyses more than 5,000 brands in South Africa by asking consumers to rate how meaningful they are to them as well as other factors.

For the BBC they have identified the top 20 most powerful foreign brands in the country.

Rank	Brand	Company	Nationality
SOURCE: MILLWARD BROWN
1	Colgate	Colgate-Palmolive	US
2	KFC	Yum! Brands	US
3	Aquafresh	GSK	UK
4	Pond's	Unilever	UK/NL
5	Nokia (phones and services)	Microsoft	US
6	Toyota	Toyota	Japan
7	Volkswagen	Volkswagen	Germany
8	Blackberry	Blackberry	Canada
9	Heineken	Heineken	Netherlands
10	Jack Daniels	Brown-Forman	US
11	Bell's	Diageo	UK
12	Pantene	P&G	US
13	Avon	Avon Products	US
14	Sunsilk	Unilever	UK/NL
15	Nivea	Beiersdorf	Germany
16	Samsung Electronics	Samsung	South Korea
17	Carling Black Label	SAB Miller	UK/South Africa
18	Cadbury's Dairy Milk	Cadbury	UK
19	J&B	Diageo	UK
20	Smirnoff	Diageo	UK

Different people, different products

With a population of 52 million, speaking 11 different languages and with a sharp history of division, appealing to a cross-section of South Africans is no easy task.

"The trick is to know your customers," says Masingita Mazibuko, beauty marketing director for South Africa's most popular skincare brand, Pond's.

"Though having a diverse population isn't something unique to South Africa, the pallet of different skin types over here prompted us to conduct a lot of research into the needs of all those different South African women," she says.

"With our ageing line, for example, we have to be aware that white skin, when ageing, regularly starts to show wrinkles - while many types of darker skin start to become more dry and show pigmentation."

While the company's big competitor Avon uses special Avon representatives to connect with less prosperous South Africans, Pond's educates so-called "beauty advisers" who help customers in local retail shops and who also go into communities to organise roadshows.

Coca-Cola's "a rainbow for a rainbow nation" campaign, celebrating the 20th anniversary of the end of apartheid

New national identity

While cosmetics firms concentrate on the different needs of different parts of the population, other brands have succeeded by tapping into the optimism created by a more unified society.

For three weeks in April, Coca-Cola used recycled water to create rainbows over its billboards in Johannesburg. The campaign was launched to mark the 20 years since the end of apartheid.

"By creating these rainbows, we managed to put a smile on the face of so many South Africans and made them feel good about themselves," says Sharon Keith of Coca-Cola Southern Africa.

It certainly achieved an industry buzz as the campaign has won several international awards.

Matt Gennrich of VW says that inflation and industrial action are particular challenges for operating in South Africa

Economic challenges

However, the South African market also has its disadvantages. "We face high inflation, relatively expensive labour and industrial action," says Matt Gennrich of Volkswagen South Africa.

"We had a six week-strike over wages last year and this year our suppliers also faced strikes."

Every year, 115,000 vehicles roll out of its factory in Uitenhage - nearly half of which will be destined for other countries.

"Because of the popularity of SUVs and pickups, and the enormous amount of second-hand Japanese cars, there's still not a very big market for us in other African countries," he says.

But with Africa's emerging middle class, Mr Gennrich thinks this situation might change.

"Interestingly enough, some companies are now thinking about setting up a car factory in Nigeria."

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