More UK digital firms than thought

 The NIESR report says many technology firms are being wrongly classified Britain has many more technology firms than the government estimates, according to a new report.


Under its classification the government recognises 187,600 digital companies.
Research by the National Institute for Economic and Social Research (NIESR) says there are almost 270,000 such companies in the UK, 40% more than the government estimate.
NIESR says the government's classification is "outdated" and misses out many tech firms.
The report used data from Growth Intelligence, a company which tracks the activity of firms on the internet and sells that information to clients.

Tom Gatten, chief executive of Growth Intelligence, said: "This research demonstrates the need for a new way of understanding the economy, both for government and for businesses.

"Rather than relying on outdated codes or static lists, our new technology and internet data reveals new opportunities and insights for growth."

In response, an official at the Office for National Statistics (ONS) said: "We are confident ONS statistics reliably measure the size and shape of the economy according to best international practice."
'New measurement'

The report was commissioned by Google and its chief economist, Hal Varian, is one of the people behind Growth Intelligence.

"This is a groundbreaking and important report by NIESR not just because it shows that the spread of the digital economy into other sectors is driving growth and jobs throughout the UK but because - for the first time in 65 years - it presents us with a new way of measuring the economy," he said.
The report says that official statistics use only a basic definition of the digital economy.
The new research goes further by identifying digital companies that are working in traditional sectors including architecture, publishing and engineering, according to the report.

It cites case studies, including Scottish firm Kelton Engineering, which sells hi-tech equipment to the oil industry, but at the moment is classified as "business support".

Another is a publishing company, Stonewash, which provides web design and other internet services, but is classified as "other publishing".


Companies like those are being wrongly classified and could be missing out on investment, because investors use classification to identify potential investment targets.

Peru peasant squads rally against U.S. firm's $5 billion gold mine

CAJAMARCA, Peru - Forty years ago, peasants in rural Peru banded together as "ronderos" - Spanish for "people who make the rounds" - to curb cattle rustling.

Today, squads of these ronderos are working toward a different aim - thwarting an American mining company's planned $5 billion gold mining project that they contend would spoil lakes vital to the local population high in the Andes.

Operating according to Andean customs, the squads act as a de facto judicial system in places where public institutions are weak and policing is scant. They have become potent political players in remote provinces, weighing in on disputes over natural resources and causing headaches for the central government.

In the northern region of Cajamarca, they helped stall U.S.-based Newmont Mining Corp's proposed Conga gold mine last year by summoning thousands of people from Andean villages to protest. Now ronderos are making a new push to demand that President Ollanta Humala scrap the project, which has obtained a series of government permits and would create thousands of jobs.

Humala has broadly backed Conga, potentially the most expensive mine in Peruvian history, since taking office in 2011. The dispute has rattled his government. He reshuffled his cabinet twice after violent protests - first to crack down on Conga opponents and then to promote dialogue after five deaths.

"The government doesn't represent us anymore," Cesar Angel, a member of one of the squads, said last week at a rally against the mine near Lake Perol, one of several Andean lakes that would be displaced to mine ore. "But we're strong and will fight this until death."

Angel stood by his horse chewing a wad of coca leaves overlooking riot police near the lake.

The rally was the biggest since Newmont and its Peruvian partner, Buenaventura, put construction of the mine on hold nearly a year ago. At the time, the companies tried to defuse tensions by starting work on a series of large reservoirs to guarantee water supplies for local communities.

The companies plan to transfer water from the lakes to four reservoirs that they say would end seasonal shortages and guarantee year-round water supplies to local towns and farmers.

But many peasants who have crops and livestock near the mine still say they fear it would dry up or pollute lakes and rivers, despite the firms' lengthy environmental remediation plan.

Conga, which holds 6.5 million ounces of gold and 1.7 billion pounds of copper, would essentially extend the life of the two companies' nearby Yanacocha gold mine.

'GUARDIANS OF THE LAKES'

Ronderos calling themselves "the guardians of the lakes" say they are camping out at Lake Perol to keep Newmont from eventually moving its water to a new reservoir - thus snarling any attempt in the future to build the mine.

"The peasant squads used to be worried about petty crimes - a stolen cow and things like that - but now they are defending our land and water from multinational companies," said Milton Sanchez, an activist who works closely with ronderos.

The project's most high-profile opponent, Cajamarca Regional President Gregorio Santos, rose to power through the ranks of Cajamarca's squads of ronderos and is now seen as a long-shot candidate for the national presidency in 2016.

Santos, a member of Peru's communist Patria Roja party, often accuses Humala of putting foreign firms ahead of local people.

"We still see him more as a rondero than a politician," said Roger Ponce, a provincial head of the peasant squads, referring to Santos.

The attorney general's office said there are more than 200,000 ronderos in Cajamarca - vastly outnumbering police.

"They're one of the few organizations that really work in this country," said Tomas Galvez, an official in the national attorney general's office. "They blow their whistle and the entire community gathers. They make a decision and it's executed. The problem is their objectives are not clear."

'REAL POWER'

Speaking in May, Buenaventura Chief Executive Roque Benavides said ronderos can complicate mining in Peru.

"You go to the top of a mountain and ask yourself: who should I talk to - the democratically elected mayor or the head of the peasant squad?" Benavides said. "And often it is the peasant squad that holds the real power."

Omar Jabara, a Newmont spokesman, urged dialogue among all sides, saying by email last week: "We respect all of the social institutions in Cajamarca, including the Ronderos."

Ronderos have had an on-again, off-again relationship with the national government. In the 1990s, former President Alberto Fujimori armed many of them to help fight Maoist Shining Path rebels. Peru's truth commission recognized their role in helping defeat the guerrillas, but also blamed them for human rights abuses like those committed by insurgents and the military.

Subsequent governments have encouraged them to focus on fighting petty crime, but Peruvian law guarantees ronderos considerable autonomy in rural areas.

This month, Peru's attorney general forged a cooperation pact with representatives of Cajamarca's ronderos - aiming to limit their occasional excesses by having them promise to protect human rights, report crimes and undergo training.

Some ronderos supported the pact but key ronderos squad leaders who are against the Conga project refused to sign it.

"The government wants to domesticate the peasant squads because we oppose Conga," said Ydelso Hernandez, a close ally of Santos and the head of a national group of ronderos.

The attorney general's office, which operates independently of the national government, denied that it aims to sideline Conga foes.

There are no statistics on crimes committed by members of the peasant squads, but local media from the provinces often describe their involvement in violent incidents.

"We are trying to teach them what their role is and how to respect human rights," said Luis Alberto Pacheco, an official in the attorney general's office who handles training.

"This is not the Middle Ages when people run around solving their problems with torches and lynchings," he said.

Ronderos in Cajamarca say they stopped carrying guns years ago. Punishments they mete out draw on traditional Andean practices, ranging from push-ups to lashings with cow whips.

One of the most severe sentences is the "rondero chain" that requires offenders to toil in fields by day and parade barefoot through frigid villages by night, some ronderos said. It can go on for days or weeks as people are handed off from one village squad to another.

Referring to Mines and Energy Minister Jorge Merino, a laughing Ponce said: "We would make Merino carry out a rondero chain for three or four months. Humala would get six months."

Stocks rebound as U.S. economy firms

The Dow Jones industrial average rose 101 points, or 0.7%. The S&P 500 gained 0.9% and the Nasdaq added 0.8%.

After suffering heavy losses in the past few days, investors were encouraged by a string of upbeat economic reports.

"The economic fundamentals continue to march forward at a moderate pace," said Doug Cote, chief market strategist at ING Investment Management. "That's all the market needs right now."

Click here for more on stocks, bonds, commodities and currencies

Housing is hot, consumers are confident. The S&P/Case-Shiller home price index rose 12.1% in April, compared with a year earlier, for the 20 top real estate markets across the nation. It was the biggest annual jump in prices in seven years and the 2.5% increase from March was the biggest one-month rise in the 12-year history of the index.

In more good news for housing, homebuilder Lennar Corp. (LEN) reported sales and earnings that topped forecasts. CEO Stuart Miller said Lennar's results "point to a solid housing recovery." New orders rose 27% in the quarter. Lennar shares held gains, but were off earlier highs.

New home sales also topped estimates, rising 2% in May to a seasonally adjusted rate of 476,000 units, the Commerce Department said.

A report on durable goods also came in better than expected. Meanwhile, a measure of consumer confidence rose to its highest level since January 2008.

Consumers have been encouraged by improvement in the job market, said the Conference Board. But the index does not reflect the recent market turmoil, which could put a damper on consumers' moods in July, according to Capital Economics.

Investors still jittery. Stocks are rebounding from steep losses Monday that were driven by continued uncertainty about China's banking system and when the Federal Reserve will ease its stimulus.

Related: Stock sell-off is 'taper tantrum'

That double whammy has caused volatility to spike.

So far this month, the CBOE Market Volatility Index (VIX) has risen 25%. And CNNMoney's Fear & Greed Index is deep in extreme fear.

"Volatility is very pronounced," Carter Worth, chief market technician at Oppenheimer, told CNNMoney in an interview. Earlier he sent around an amusing note that simply said "We have no new thoughts. Sell."

"If this kind of volatility is taking place, there is a change in the wind. That doesn't mean we are going to see a bear market or a crash, but upside is limited and downside is unknown, but very real," he told CNNMoney.

Related: Bonds in the bargain bin

Comments attributed to a People's Bank of China official helped ease some jitters in China's stock markets Tuesday. The official reportedly said the bank will keep interest rates in check, and that seasonal forces that have driven them higher recently will fade.

Following his comments, the Shanghai Composite, which was down as much as 5.6%, recovered to close just 0.2% lower. (Check other world markets)

Mixed bag of earnings. Shares of Walgreen (WAG, Fortune 500) sank nearly 6% after the drugstore chain missed earnings and revenue forecasts.



Barnes & Noble (BKS, Fortune 500) shares plunged after the bookseller said it will stop making the Nook in-house and will partner with a third party to manufacture the eReading device. Sales in the Nook segment fell 34% in the quarter to $108 million.

Carnival (CCL) said earnings fell 55% to 9 cents per share in the second quarter. The beleaguered cruise ship operator warned in May that earnings would suffer this year due to price cuts following the Carnival Triumph mishap. But the drop in earnings was not as bad as some had feared, sending Carnival's stock higher.

After the market closed, Smith & Wesson (SWHC) reported record sales and profits for the fourth quarter. The gunmaker also boosted its outlook for the current quarter and year.

CEO James Debney said increased production and "continued robust consumer demand for firearms," helped lift sales of the company's M&P line, which includes assault rifles.