Note 7 fiasco could burn a $17 billion hole in Samsung accounts

Samsung Electronics' worst-ever recall could cost the company as much as $17 billion after it halted sales of its flagship Galaxy Note 7 for a second time, spelling an almost certain end for the ill-fated premium model.

Samsung announced the recall of 2.5 million Note 7s in early September following numerous reports of the phones catching fire and on Tuesday the crisis deepened: The company told mobile carriers to stop sales or exchange of the $882 device and asked users to shut off their phones while it investigated new reports of fires in replacement Note 7s.

As the world's top-selling smartphone company awaits results of probe by US safety regulators, some investors and analysts predict Samsung may scrap the Note 7 and move on to successor models to limit the financial and reputational damage.

"In the worst case scenario, the US could conclude the product is fundamentally flawed and ban sales of the device," said Song Myung-sub, an analyst at HI Investment Securities.

If Samsung stops selling the Note 7s, that will translate into lost sales of up to 19 million phones that the firm was expected to generate during the Note 7's product cycle, according to analysts.

That would equate to nearly $17 billion in lost revenue, based on a Reuters calculation of the cost of the phones.

That's a big increase from $5 billion in missed sales and recall costs analysts initially executed Samsung to incur under the assumption that the firm would resume global Note 7 sales in the fourth quarter.

Chances of that now look slim. South Korea's Hankyoreh newspaper, citing unnamed sources, said on Tuesday Samsung will likely stop Note 7 sales permanently. Samsung did not comment on the report.

"This has probably killed the Note 7 brand name," said Edward Snyder, the managing director of Charter Equity Research.

"By the time they fix the problem they have to go through re-certification and re-qualification and... read full story

Driverless vehicle to be tested on UK streets for the first time

A driver-less vehicle carrying passengers is taking to Britain's public roads for the first time on Tuesday, as part of trials aimed at paving the way for autonomous cars to hit the highways by the end of the decade.

The government is encouraging technology companies, car makers and start-ups to develop and test their autonomous driving technologies in Britain, aiming to build an industry to serve a worldwide market which it forecasts could be worth around £900 billion ($1.1 trillion) by 2025.

Earlier this year, it launched a consultation on changes to insurance rules and motoring regulations to allow driver-less cars to be used by 2020 and said it would allow such vehicles to be tested on motorways from next year.A pod - like a small two-seater car - developed by a company spun out from Oxford University will be tested in the southern English town of Milton Keynes on Tuesday, with organizers hoping the trials will feed vital information on how the vehicle interacts with pedestrians and other road-users.

"Today's first public trials of driver-less vehicles in our towns is a ground-breaking moment," Britain's business minister Greg Clark said.

"The global market for autonomous vehicles present huge opportunities for our automotive and technology firms and the research that underpins the technology and software will have applications way beyond autonomous vehicles," he said.

The pod will operate fully without human control, using data from cameras and radars to move around pedestrianized areas. It was made by Oxford University spin-out Oxbotica, with software developed by the university's Oxford Robotics Institute.

Car makers Jaguar Land Rover and Ford are both part of driver-less car projects in Britain, as major car makers seek to head off the challenge from technology firms such as Alphabet Inc's Google, which is also developing autonomous vehicles.

But all parties still need to overcome technological and legal obstacles including determining who would be responsible in the event of an accident, with recent accidents involving driving assistance systems raising safety concerns.

Organizers in Milton Keynes ran a number of exercises ahead of the trial including mapping the town and conducting safety planning with the local council ahead of Tuesday's trial.

The city, around 45 miles (70 km) north of London, was selected alongside three other locations for autonomous technology projects partly due to its wide pavements and cycle path network.

Britain is aiming to be more flexible in its approach to driver-less testing than some other major economies, with Germany saying it will require black boxes to be fitted in such vehicles and automakers having to navigate different rules across U.S. states.

Ford shuts Mustang factory for a week after sales plunge

Ford Motor is shutting its Mustang factory in Michigan for a week after the iconic sports car suffered a 32 per cent sales decline in the US last month and was outsold by the Chevrolet Camaro for the first time in almost two years.

The second-largest US automaker idled the factory in Flat Rock, south of Detroit, to match production capacity with demand, Kelli Felker, a company spokeswoman, said in an e-mailed statement. The plant, which employs 3,702 workers and makes Mustangs and Lincoln Continentals, will resume production October 17, Felker said. Under the automaker's labor agreement, workers will be paid during the shutdown.

The idling may be a sign of the growing weakness of the US auto market, which had been a leading driver of economic growth. Automakers' monthly sales have been coming up short - though they beat expectations in September - and many analysts are now predicting the US auto industry won't match last year's record of 17.5 million cars and light trucks.

Mustang, which is among Ford's most storied nameplates, received a racy redesign two years ago on the car's 50th anniversary. That new look helped propel the Mustang past the Camaro in 2015 to regain its title as the top-selling sports car in America, which it had held for decades before General Motors redesigned the Camaro in 2010.

Camaro overtook Mustang last month for the first time since October 2014 on the strength of incentives that more than tripled last month to $3,409 per car, compared with an average discount of $2,602 on the Ford pony car, according to data from researcher JD Power obtained by Bloomberg.

"In terms of incentives, we're always going to be disciplined, but we'll be competitive as well," Erich Merkle, Ford's sales analyst, said in an interview. Ford has sold 87,258 Mustangs in the US this year, down 9.3 per cent, while GM had Camaro sales of 54,535, off 11 per cent, according to researcher Autodata Ford Chief Executive Officer Mark Fields has said the US auto market has plateaued and that showroom sales are weakening.

Ford began selling Mustang globally last year, and the factory produces... read full story

Samsung scraps Galaxy Note 7

Samsung Electronics Co Ltd scrapped its flagship Galaxy Note 7 smartphone on Tuesday less than two months after its launch, dealing a huge blow to its reputation and outlook after failing to resolve safety concerns.

Samsung announced the recall of 2.5 million Note 7s in early September following numerous reports of the phones catching fire and on Tuesday it finally pulled the plug on the $882 device in what could be one of the costliest product safety failures in tech history.

The decision to scrap the Note 7 came after fresh reports of fires in replacement devices prompted new warnings from regulators, phone carriers and airlines.

"(We) have decided to halt production and sales of the Galaxy Note 7 in order to consider our consumers' safety first and foremost," the South Korean firm said in a filing to the Seoul stock exchange.

Samsung said earlier it asked all global carriers to stop sales of the Note 7s and the exchange of original devices for replacements, while it worked with regulators to investigate the problem. The company is offering to exchange Note 7s for other products or refund them.

Samsung's decision to pull Note 7s off the shelves not only raises fresh doubts about the firm's quality control but could result in huge financial and reputational costs.

Analysts say a permanent end to Note 7 sales could cost Samsung up to $17 billion and tarnish its other phone products in the minds of consumers and carriers.

Investors wiped nearly $20 billion off Samsung Electronics' market value on Tuesday as its shares closed down 8 per cent, their biggest daily percentage decline since 2008.

A TIMELINE OF THE TECH GIANT’S WORST-EVER RECALL CRISIS
Aug 2: Samsung launches Galaxy Note 7 at a New York media event
Aug 19: Samsung starts Galaxy Note 7 sales in 10 markets, including United States and South Korea
Aug 24: Report of a Note 7 explosion surfaces in South Korea
Sep 1: Samsung starts Galaxy Note 7 sales in China
Sep 2: Samsung announces global recall of 2.5 million Note 7 phones, citing faulty batteries
Sep 8: US Federal Aviation Administration advises passengers to not turn on or charge Note 7 smartphones aboard aircraft or stow them in plane cargo
Sep 9: US Consumer Product Safety Commission urges Galaxy Note 7 users to stop using their phone
Sep 15: US Consumer Product Safety Commission formally announces recall of about 1 million Note 7 phones
Sep 16: Florida man sues Samsung for burns from Note 7 explosion. Samsung says to resume Note 7 sales in South Korea on September 28
Sep 19: Samsung says a Note 7 phone a China user claims caught on fire was caused by external heating
Sep 21: Verizon Communications, Sprint Corp begin taking orders for new Note 7s
Sep 29: Samsung says more than 1 million people globally now using Note 7s with safe battery
Oct 6: A Southwest Airlines plane in the United States evacuated due to smoke from a Note 7 device on board
Oct 10: Samsung says it is adjusting Note 7 shipments for inspections, quality control due to more phones catching fire
Oct 11: Samsung scraps Note 7 production

The premium device, launched in August, was supposed to... read full story

Global growth benefited 'too few' people for 'too long': Christine Lagarde

Global growth has benefited ‘too few’ people for ‘too long’ and inequality remains high in many countries as trade has increasingly become a ‘political football’, IMF (International Monetary Fund) chief Christine Lagarde has said calling on world leaders to focus on an inclusive development strategy.

“The first priority for inclusive growth is to escape the ‘new mediocre’ of low growth, low employment, and low wages. That means using all policy tools – monetary, fiscal, and structural: to maximize the synergies within countries — and amplify the impact though coordination across countries,” she said at the annual fall meetings of the IMF and the World Bank here yesterday.

“Putting it simply: growth has been too low, for too long, and benefiting too few,” the International Monetary Fund Managing Director said. “The social and political consequences are becoming all too apparent. Inequality remains too high in too many countries. Conflict and migration exert a terrible toll. Trade has become a political football. And supporters of economic integration — and cooperation — are on the defensive,” she said.

Lagarde said the world needs a “transition to the digital age — but a transition that benefits everyone. And we need to accelerate now,” she said. The IMF has projected global growth at 3.1 per cent this year, with only a modest acceleration to 3.4 per cent next year, she said.  With interest rates at historic lows, there is no better time for public investment: to expand access to high-speed internet, promote energy-efficient transport, and build climate-friendly infrastructure, Lagarde asserted.

“Even where fiscal space is unavailable, governments can reallocate funds into R&D by offering tax credits and supporting public research institutions. Remember: all the technologies that make our mobile phones ‘smart’ have benefited from public funding — wireless networks, GPS, touch screens. This shows that good public policies can boost growth for decades to come,” she added.

Lagarde said the second priority for inclusive growth is providing everybody with a level playing field. For this, she called for increasing the equality of opportunity, promote fair burden-sharing and preserve competition and market access. “This is especially important for the digital economy, where network effects can lead to increases in market concentration — which harms innovation and concentrates wealth at the top,” She said.

By injecting more—and fairer—competition, we can ensure that the vast potential of the digital age can be managed for the benefit of all,” she  said.

IMF chief gives Deutsche Bank tough advice, says need deal on US fine

International Monetary Fund (IMF) chief Christine Lagarde gave Deutsche Bank some tough advice on Thursday, saying Germany's biggest lender needed to reform its business model and rapidly reach a deal with US regulators over a potentially huge fine.

A senior European official tried to shore up confidence in the continent's banking system, saying it was working well overall, while sources said Germany's financial watchdog had found no evidence so far that Deutsche violated money laundering rules in Russia, possibly relieving one of its many headaches.

Meanwhile, the chief executives of several German blue-chip companies have discussed Deutsche's problems and are ready to offer a capital injection if needed to shore up the bank, newspaper Handelsblatt reported on Thursday.

However, Lagarde did not mince her words about the problems of Deutsch, which the IMF has identified as a bigger potential risk to the financial system than any other global bank, in an era of ultra-low interest rates.

"Deutsche Bank, like many other banks, has to look at its business model," she told Bloomberg Television during the IMF and World Bank's autumn meetings in Washington.

"It has to look at its long-term profitability - given the lower-bound interest rates we have around the world and probably for longer than many expect - and decide what size it wants to have and how it wants to strengthen its whole balance sheet," she said.

Germany's flagship bank is under heavy pressure as it fights a penalty of up to $14 billion that the US Department of Justice (DoJ) plans to impose for misselling mortgage securities, its latest setback that sent its shares to a record low last week and worried clients.

Deutsche is in the middle of a deep overhaul that includes slashing a workforce of around 100,000, revamping information technology and selling non-core assets. It struck another deal on Thursday with its works council to cut a further 1,000 staff in Germany, bringing total job losses there to 4,000.

Lagarde acknowledged that Deutsche was selling assets but underlined the importance of reaching an out-of-court settlement with the DoJ.

"A bad settlement is always better than a good trial," she said, adding that Deutsche was "not in a trial mode".

"A settlement would... deliver some certainty as to what weight the bank will have to carry and whether it matches with its provisions or not. So the sooner, the better," she said.

Deutsche has already spent 12 billion euros ($13.4 billion) on litigation since 2012, and says it has put aside 5.5 billion euros for its expected legal bill. This is far less than the top end of a possible DoJ fine, although other banks have negotiated their penalties down to much smaller sums and Deutsche hopes to do the same.

In preparation for a higher-than-expected legal bill, Deutsche has begun speaking with Wall Street firms about its options to raise capital. Senior advisers at the firms are offering to help underwrite a stock sale to raise about 5 billion euros, according to a Bloomberg report.

Deutsche Bank declined to comment on the report. Nevertheless, uncertainty remains over the provisions amount. "We reckon that ... read full story

Google, Samsung, Facebook and others race for edge in artificial intelligence

Major technology firms are racing to infuse smartphones and other internet-linked devices with software smarts that help them think like people.

The effort is seen as an evolution in computing that allows users to interact with machines in natural conversation style, telling devices to tend to tasks such as ordering goods, checking traffic, making restaurant reservations or searching for information.

The artificial intelligence (AI) component in these programs aims to create a world in which everyone can have a virtual aide that get to know them better with each interaction.

Google is making a high-profile push into AI, with the internet titan's chief referring to it as a force for change as powerful as smartphones. Google Assistant software is being built into the new Pixel handsets - aiming to outdo Apple's Siri - enabling users to organize and use information on the devices and in the cloud - to check emails, stay up to date on calendar appointments, news or ask for traffic and weather data.

Google also offers AI through its Allo messaging application which can be installed on smartphones, and its Google Home hub, a standalone device similar to Amazon's Echo which responds to voice commands to manage tasks and fetch information where people live.

South Korean electronics giant Samsung moved to jump start its AI efforts by purchasing the US start-up Viv Labs, launched by the creators of Apple's Siri.

Samsung says the acquisition, which was announced this month, is part of its effort to provide AI-based voice assistance services its customers can use across all Samsung devices and products, from smartphones to televisions to washing machines.

Samsung is the world's leading maker of smartphones powered by Google's free Android software, but also has its own Tizen mobile operating system, so how it may field its own virtual assistant technology remains to be seen.

Amazon in 2014 unveiled its Echo home assistant, a voice-activated speaker, powered by its "Alexa" artificial intelligence program. Users can ask for news or information updates... read full story

Pressure on Trump likely to be intense at second debate

Republican presidential nominee Donald Trump, facing eroding support from his party over lewd remarks about women, goes into a second presidential debate with Democrat Hillary Clinton on Sunday needing to demonstrate he remains a credible candidate.

The pressure on the 70-year-old Trump at the debate will be intense. Not only must he parry attacks from Clinton and explain why he is a better alternative. He must also show an apologetic side to stop more Republican supporters from giving up on him. Trump already had an uphill battle to win the White House in the November 8 election before disclosure of a 2005 video in which he could be heard talking crudely about women. A Reuters-Ipsos poll had Clinton leading by five points on Friday, before the video surfaced. Now, the question is whether Trump's quest for the presidency is all but over. The fresh controversy adds an air of unpredictability over the 9 pm EDT debate at Washington University in St Louis, the second of three scheduled presidential debates as the long-running US election contest enters its final weeks.

It will be a town hall-style debate with undecided voters posing half the questions and the debate's two moderators posing the others.
His vice presidential running mate, Mike Pence, said on Sunday that Trump needs to show contrition.

"We pray for his family and look forward to the opportunity to show what is in his heart when he goes before the nation tomorrow night," Pence said in a statement.

The crisis has put the Republican National Committee in a tight spot with less than a month to go until Election Day.
Trump would have to resign the nomination to allow Republican leaders to choose a successor, but the New York businessman is showing no signs of stepping down despite increasing calls from elected leaders for him to let Pence become the nominee.

"The media and establishment want me out of the race so badly - I WILL NEVER DROP OUT OF THE RACE, WILL NEVER LET MY SUPPORTERS DOWN!" Trump tweeted on Sunday from Trump Tower in New York.

At the first debate, on Sept. 26, Trump was repeatedly put on the defensive by Clinton. He never let her accusations go unanswered, and as a result... read full story

If elected, will jail Hillary over email case: Trump

Republican nominee Donald Trump on Monday vowed to launch a special investigation against Democratic rival Hillary Clinton over her use of a private email server as Secretary of State, if elected as the US President and ensure she is jailed.

"We are going to get a special prosecutor and we are going to look into it, because you know what? People... Their lives have been destroyed for doing one-fifth of what you have done. And it's a disgrace. And honestly, you ought to be ashamed of yourself," Trump said as held a feisty exchange of words with Democratic rival during their second presidential debate at St Louis.

Clinton, 68, accused Trump of lying. "Because everything he just said is absolutely false, but I'm not surprised," she said. "Oh, really?" Trump remarked.

"It is just awfully good that someone with the temperament of Donald Trump is not in charge of the law in our country," Clinton said. "Because you'd be in jail," Trump said in another interruption.

"If you did that in the private sector, you'd be put in jail, let alone after getting a subpoena from the United States Congress," Trump said.

He demanded that Clinton apologize for deleting 33,000 e-mails. "I think the one that you should really be apologizing for and the thing that you should be apologizing for are the 33,000 e-mails that you deleted and acid washed and then the two boxes of e-mails and other things last week that were taken from an office and are now missing," he said.

"I did not think I would say this, but I am going to say it. And I hate to say it but if I win, I am going to instruct my attorney general to get a special prosecutor to look into your situation, because there has never been so many lies, so much deception. There has never been anything like it and we are going to have a special prosecutor," Trump said.

People in this country get furious, the 70-year-old real estate tycoon said, adding, "In my opinion, the people that have been long-term workers at the FBI are furious. There has never been anything like this, where e-mails... read full story

Snapchat planning $25 billion IPO

Snap Inc - the parent company of popular photo-sharing messaging service Snapchat - is considering an initial public offering (IPO) that can value the company at $25 billion or more, media reported on Friday.

According to Wall Street Journal, Snap Inc is looking to sell shares as early as late March 2017.

The IPO would be the largest by any technology company after Chinese e-commerce giant Alibaba Group that went public in 2014 and raised $21.8 billion for the company and investors.

Snap Inc's worth reached nearly $18 billion in May.
"Last month (September), Snapchat rolled out three new targeting options, such as a feature where marketers can take their existing list of email addresses and anonymously match that with Snapchat's own data. Marketers can also push ads to people who watch certain types of videos, like sports," WSJ reported.

Snapchat is also reportedly set to enter the augmented reality (AR) field.
It has joined the Bluetooth Special Interest Group (SIG) which maintains the Bluetooth wireless standard. Joining this group is a necessary prerequisite for firms that want to employ Bluetooth in any hardware devices.

According to Financial Times, the Snapchat move to switch from software to hardware fuels speculation that it is working on AR wearable devices (like Google Glass). Snapchat has also acquired start-up Vergence Labs that was developing a headset similar to Google Glass. Snapchat currently has 150 million daily active users.

Apple bids goodbye to third-generation Apple TV

Apple has reportedly bid goodbye to its third-gen Apple TV, shifting its focus on the new fourth-gen model, media reported on Thursday.
According to 9to5mac.com, in an email sent out to employees and education partners, Apple said that it is discontinuing the device.

 "The third-gen model was introduced in 2012 and was quietly updated a year later. Since then, Apple has shifted its focus to the tvOS-powered fourth-gen Apple TV," the report said. Apple, however, said it will fulfill order backlog for the device.

The company is currently selling refurbished models of third-gen Apple TV for $59.
Once the refurbished models disappear, "Apple will seemingly have stopped sales of the third-gen Apple TV all together," the report added.

Also read : Apple offers free app to teach children coding

It is also not clear if third-gen Apple TV will receive any additional software updates.
According to Apple website, every Apple TV comes with complimentary telephone technical support within 90 days of its purchase. In addition, Apple TV and all accessories are covered against defects for one year from the original purchase date by a limited hardware warranty.

Walmart takes on Amazon in all spheres

Walmart Stores is accelerating its investment in e-commerce in a bid to narrow the gap with Amazon.com and to give it an even more dominant position against the rest of the field in retail.

The world’s largest retailer is now on track to double the number of giant warehouses dedicated to online sales to 10 by the end of 2016, according to Justen Traweek, vice-president of e-commerce supply chain and fulfillment. That pace is faster than the 8 large warehouses that industry consultants expected Walmart to build by the end of 2017.

At the same time, Walmart in the last year has installed new technology such as automated product sorting and improved item tracking that for the first time puts them on a par with Amazon’s robot-staffed facilities, according to supply-chain consultants.

“We have doubled our capacity in the last twelve months and that allows us to ship to a majority of the US population in one day,” Traweek said.
Walmart is holding its annual investor day on Thursday when, among other topics, it is expected to update on the progress it has made in its e-commerce business.

Walmart, which has about 4,600 stores in the United States and over 6,000 worldwide, has been investing in e-commerce for 15 years, but it still lags far behind Amazon.

“These additions definitely give Wal-Mart the opportunity to compete better than other companies going head-to-head with Amazon,” said Steve Osburn, director of supply chain with consultancy Kurt Salmon, referring to the likes of Target and others. “Having said that, choosing to race with Amazon is different than catching up with them.” Walmart in the last four financial years has accelerated its investment in e-commerce and digital initiatives, excluding acquisitions, from about $300 million in 2013 to $1.1 billion this year for a total of about $3 billion, according to public filings and earnings transcripts. E-commerce accounts for about 3 per cent of Walmart’s overall sales.

Since 2011, Walmart has acquired 15 e-commerce startups, one of which became its core Silicon Valley technology arm, @WalmartLabs. Last month, it completed its purchase of online retailer Jet.com for about $3 billion and named Jet’s founder, Marc Lore, the head of Walmart’s e-commerce business.

The massive warehouses are key to Wal-Mart’s e-commerce strategy because they enable the company to deliver packages more economically when shipping online orders with multiple items. Fulfilling such orders now can often mean multiple shipments from different warehouses or stores.

“This improves two fundamental things: Wal-Mart’s speed to market, which is how fast their products reach consumers, and it will help them reach an even larger audience,” said Regenia Sanders, vice-president of supply chain at consultancy SSA & Co.

Even with Wal-Mart’s new investments, though, Amazon has... read full story

EU aid summit pledges $1.35 bn to help Afghanistan

A European Union (EU) donors conference — which was attended by over 70 countries, including India, and some 20 international organisations 3 held in Brussels pledged $1.35 billion on Wednesday in support of the Afghanistan democracy and stability process, an official said.

EU foreign policy representative Federica Mogherini said the grouping expected a similar level of contribution from other overseas partners, Efe news reported.

"We hope to obtain worldwide pledges, similar to the level the world has given up till now," Mogherini said on her arrival at the conference.
The Italian politician said she was confident the international community would back the initiative "not only with words but also with financial aid."
Mogherini said she expected there would be no donor fatigue among the Afghanistan aid partners.

Mogherini on Tuesday spoke with the ministers of key regional partners such as China, India or Pakistan as well as United Nations Secretary General Ban Ki-moon and US Secretary of State John Kerry.
"The aim of the talks was to work towards a regional common platform supporting the Afghan peace and reconciliation process," she said.

"The reason the International Community is here today, around 199 delegations, is to support Afghanistan for the benefit of the Afghan population, regional and international security," she said.

Mogherini said an investment in Afghanistan's security and the country's success was also an investment "in our own security."
United Nations Secretary General Ban Ki-moon said it was important to send a strong message of support to Afghanistan.

He said Afghan authorities were undertaking an impressive reform to change the Afghan people's lifestyle after experiencing political, social and financial difficulties, plus terrorism and extremism. Ban pledged UN support to Afghanistan.

Twitter drops 9% after report that Google won't bid

Shares of Twitter slumped 9 per cent late on Wednesday after Recode reported that Google, owned by Alphabet , would not move forward with a bid to acquire the social network.

Citing sources it did not identify, Recode also said that Apple was unlikely to be one of the possible suitors.

Twitter has told potential buyers it wants to conclude negotiations about selling itself by the time it reports third-quarter earnings on October 27, people familiar with the matter told Reuters.

Salesforce.com Inc is in the running, while Alphabet and Walt Disney Co have also contemplated bids, the people told Reuters.

Twitter's stock was last down 9.21 per cent in after-hours trade at $22.58.

The company has struggled to generate revenue growth and profit, despite having some 313 million average monthly active users and a growing presence as a source of news.

Britain to impose stricter rules on immigrants: Home secretary

Britain Home Secretary Amber Rudd told the Conservative Party annual conference in Birmingham that stricter rules for immigration was not a case of pulling up the drawbridge on the brightest overseas students.

Rudd told the conference in a keynote speech that the government will be consulting shortly, on the next steps needed to control immigration, aiming at people who come to Britain to work or study, Xinhua news agency reported.

New immigration rules to control the number of students heading to study in Britain were announced by the minister on Tuesday.
She said Britain will look for the first time at whether student immigration rules should be tailored to the quality of the course and the quality of the educational institution.

She told delegates: "The current system allows all students, irrespective of their talents and the university's quality, favourable employment prospects when they stop studying."

Rudd said she was passionately committed to making sure Britain's world-leading institutions can attract the brightest and the best.

Rudd also said Britain will examine whether to toughen the test companies have to take before recruiting staff from abroad.

She said: "British businesses have driven the economic recovery in this country, with employment at record levels. The test should ensure people coming here are filling gaps in the labor market, not taking jobs British people could do."

Her measures were directed as a warning to those that oppose any steps to reduce net migration, saying the government will not waver in its commitment to put the interests of the British people first.