Apple is selling about 3 million iPods every month and sales of the devices are expected to top $8bn £4

Apple is selling about 3 million iPods every month and sales of the devices are expected to top $8bn (£4.3bn) this year. It makes a further $2bn in revenues from music sales through its iTunes online music store.Microsoft, whose MSN network of websites also sells music, is determined to move back in from the sidelines of this market.Peter Misek, a technology analyst at Canaccord Adams, said the software giant faces an uphill struggle to topple Apple, but appears to have learnt from the success of the iPod, and particularly from the simplicity of its design. It already looks as though the winner could be the first to develop a wireless player, where songs can be downloaded without having to plug the equipment into a personal computer.
The Silicon Valley rumour mill has been spinning like crazy in recent weeks, amid speculation that Microsoft could have its rival to the iPod ready to unveil by the autumn.And now Apple is also said to be closing in on a new product launch in collaboration with Research in Motion, the maker of the Blackberry, plus a new version of the video iPod.The secrecy surrounding both sides’ product development project reflects the high stakes being played for. Microsoft and Apple are in a desperate behind-the-scenes race to develop a new generation of personal music and video players in time for Christmas, with Microsoft, the biggest name in software, aiming to finally break the dominance of the mighty iPod. While policymakers appear in no hurry to move borrowing costs yet, many economists expect a rise in the months ahead.The figures from the Office of National Statistics showed scrap metal was one of the biggest drivers of factory gate prices in June because of burgeoning demand from countries such as Turkey and China.The ONS said recovered secondary raw materials prices rose by 56.8 per cent on the year – the fastest rate since comparable records began in 1991.. As a result, we still see the risk of the Bank raising rates in November.”Last week the Bank left rates unchanged at 4.5 per cent for the 11th successive month. The fact they have risen by 0.3 to 0.4 per cent for the past four months indicates manufacturers in some sectors have taken advantage of firmer demand.”Recent surveys have pointed to a marked increase in orders, particularly to meet a surge in demand from the eurozone economies.Some analysts said that the Bank would take some relief from the fact that manufacturers were still unable to pass on the entire impact of raw materials costs, where inflation is still in double digits.James Knightley, at ING Financial Markets, said: “Given that competitive pressures are strong, we doubt that higher input costs will be passed on to the consumer in a significant fashion.”Nonetheless, the Bank remains concerned about inflation in an environment of stronger growth.

Without the car, the plant will almost certainly close, having cut 900 jobs in May with the scrapping of its night shift.. The price of goods made in Britain rose at the fastest rate for 19 months in June, according to official figures that will ring alarm bells at the Bank of England. Manufacturers raised their prices by 0.1 per cent last month, the sixth rise this year, taking the annual rate of inflation at the factory gate to 3.3 per cent.
This figure has not been higher since November 2004 and will add to fears within the Bank of a rise in inflationary pressure that would justify a rise in interest rates, analysts said.The rise in prices came despite a fall in factories’ raw materials costs, indicating that manufacturers now feel confident they can rebuild their profit margins.Stripping out energy costs, which have dominated industry for some months, the annual rate of “core” output inflation rose to a 19-month high of 2.9 per cent.Howard Archer, the chief UK economist at Global Insight, said: “The output inflation data will not please the Bank of England. The Government has offered to provide between £5m and £15m to help Ellesmere Port win the new model, which is due to go into production in 2009-10. Coverage in France, for instance, will decline from 37 per cent to 18 per cent while in Ireland it will halve from 100 per cent to 50 per cent.The whole of Northern Ireland will continue to qualify, as will Cornwall and the Scilly Isles, West Wales and the Valleys and the Scottish Highlands and Islands.A DTI spokeswoman said that although Ellesmere Port would no longer be eligible, the offer of aid already made to Vauxhall to help it build a replacement for the new Astra would not be affected.

Companies in eligible regions can receive between 10 per cent and 30 per cent of the cost of a project to help create or safeguard jobs.Margaret Hodge, minister for industry and the regions, said that although the decisions about which areas to axe had been difficult, the shrinkage of the regional aid map was partly a reflection of Britain’s strong economic performance.The Department for Trade and Industry also pointed out that other member states had fared far worse than the UK. Eligibility is based on a region’s employment rate, level of skills, numbers claiming incapacity benefit and percentage of jobs in manufacturing.The Government hands out about £200m a year in RSA – which accounts for about 20 per cent of the total aid budget. Apart from Halton and Ellesmere Port, the other areas which will no longer qualify are: South Manchester, North Warwickshire, Lowestoft, Brighton and Hove and Edinburgh and West Lothian. The latest deadline of December 2006 looks under threat unless an outline agreement can be reached this month.. Britain’s regional aid map was cut by a quarter yesterday as the Government abolished financial support for six regions of the country, including Ellesmere Port, the home of the closure-threatened Vauxhall car plant.

The reduction in the number of UK areas eligible for regional selective assistance (RSA) follows European Union moves to redistribute more of the aid budget to poorer regions in accession countries.
From the start of next year, the percentage of the UK population covered by the RSA grants will fall from 31 per cent to 24 per cent. In a letter to the leaders of the Group of Eight (G8) nations before their summit this weekend, Mr Wolfowitz warned time was “running out”. He said the three main players – the United States, European Union and G20 group of emerging economies – needed to give ground but he hinted the US should move first.
“The G20 wants steeper cuts in US farm subsidies before accepting required cuts in industrial goods. Washington can unlock this by stepping forward with a better offer,” he said “If this happens, the EU will .. meet them both with a strengthened offer. There is a three-way bargain here.”The former deputy defence secretarysaid a successful trade deal would lift millions out of poverty and boost incomes in developing countries.Negotiations on a new trade agreement began in 2001, aimed at boosting development in the world’s poorest countries.

But they ran into the ground over demands by poor countries that their rich neighbours cut their subsidies and tariffs protecting their farmers.An initial deadline of December 2004 was missed after a summit of all 148 nations ended in disarray. Adults considering a career change will also be able to attend courses.. Paul Wolfowitz, the head of the World Bank, turned up the pressure on his former employers at the White House yesterday to produce a “better offer to unlock” the stalled trade talks. Mr Dyson also hopes to involve engineering firms and charitable trusts among the school’s sponsors.Airbus, Rolls-Royce and Williams F1 are donating prototypes and taking part in the school’s industry mentoring programme.The students will include full-time 16-18-year-olds and 14-16-year-olds who can attend for one day a week.