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Monday 16 January 2012

UK Financial News on 2012-01-16

Investors threaten to strike over junk bond terms
Banks' historic weakness means the time for change is now.....

EU considers omnibus reform rules
Policymakers weigh legislation to nationalise the slew of reforms and cut opportunities for regulatory arbitrage.....

Opposition intensifies over rating agency proposals
Financial sector slams European Commission plans as ill-considered and costly.....

Hedge fund makes a bid to save the world
.....

Economic fears spark three-month bond bonanza
Experts predict financial debt issuers could raise three-quarters of funding needs in the first quarter as bearish expectations force front-loading.....

Equiduct faces regulatory vote
Europe's new super-regulator has been investigating whether the share-trading platform complies with rules laid down by Mifid.....

Institutional investors chop hedge fund fees
Hedge funds desperate for business are offering big discounts to investors.....

MEPs warn UK veto threatens pension talks
Pension schemes could the first victims as Prime Minister's veto harms UK interests at Europe's negotiating table.....

BAT stubs out equities holding
Cigarette maker will pay £850m into its £2bn pension scheme over the next five years in return for a move into lower-risk assets.....

Gloom descends on European bank stocks
With the results season looming, analysts are more negative than at any point since the crisis.....

Swaps traders fret over lack of SEF rules
Concerns on the rise at lack of details as crunch date looms.....

Actis management to buy governments 40% stake
Deal comes after 12-month search failed to find an alternative buyer for private equity firm.....

Analysts put 4bn price tag on SGs custody arm
Citigroup estimate for SocGen's custody arm would meet French bank's asset disposal proceeds target.....

ScottishPower cuts gas prices 5%
ScottishPower becomes the last of the big six energy suppliers to cut its tariffs, knocking an average 5% off gas bills......

Ship sinking costs Carnival $95m
The sinking of the Costa Concordia could cost parent firm Carnival up to $95m (62m; 75m euro), the firm says......

Past Times enters administration
Retailer Past Times goes into administration, blaming difficult trading conditions last year......

UK in recession, says think tank
Britain is already technically in recession, and unemployment will rise further, economic forecaster the Item Club warns......

S&P downgrades EU's bailout fund
The credit ratings agency Standard & Poor's (S&P) downgrades the EU bailout fund, the EFSF, to AA+ from AAA......

Mini recalls cars over pump fears
Mini is recalling 29,868 cars in the UK as part of a wider recall of 235,000 vehicles worldwide over fears a water pump is a fire risk......

Peacocks in administration plan
Clothing retailer Peacocks intends to go into administration after failing to restructure company debts of around 240m......

E.On cuts electricity price by 6%
Energy company E.On says it is to cut its standard electricity prices by 6% from Monday 27 February......

Moody's keeps French AAA rating
Ratings agency Moody's is maintaining France's top AAA credit rating for now, three days after it was downgraded by another agency......

Clegg plan for employee ownership
Deputy Prime Minister Nick Clegg urges more firms to offer shares to their staff, saying it will improve productivity and boost growth......

London planning yuan trading hub
The UK Treasury announces plans to make London the leading international centre for trading the Chinese currency, the yuan......

Luton airport planning expansion
Plans to increase annual passenger capacity to 18 million at London Luton Airport and create 6,000 new jobs are revealed......

Sean Quinn bankrupt in Republic
Fermanagh businessman Sean Quinn, once Ireland's richest man, is declared bankrupt by a court in the Republic of Ireland......

Strong growth at Stanley Gibbons
Stamp collecting specialist Stanley Gibbons says it experienced a healthy 2011 amidst a number of new ventures......

Bloomsbury sees e-book sales jump
Publisher Bloomsbury reports strong fourth-quarter trading, helped by cook books, Harry Potter and a jump in e-book sales......

Builder Bovis eyes profit boost
UK housebuilder Bovis says it expects to report a significant increase in profit for 2011, following strong earnings growth......

Mortgage lending 'up in November'
Mortgage lending in the UK picked up slightly towards the end of last year, mortgage lenders have reported......

Benefit changes set to be revised
Ministers are preparing to make further concessions over proposed changes to disability benefits - part of their controversial welfare reform agenda......

Tax officers in lightning walkout
Some 20,000 staff providing advice on tax returns will hold walkouts on Monday over "privatisation", the PCS union says......

India inflation rate down to 7.5%
India's inflation rate fell in December to 7.5% from 9.1% in November, partly due to an easing in the rate of food price rises, figures show......

Wiseman agrees to Muller takeover
Britain's biggest fresh milk company, Robert Wiseman, agrees to be taken over by Muller in a deal worth almost 280m......

Apple publishes supplier details
Apple publishes a list of its suppliers for the first time as it looks to head off criticism over how workers are treated......

Tottenham Hotspur delists shares
Football club Tottenham Hotspur delists its shares from the stock market and goes private as it looks to build a new stadium......

Arsenal prepare for Nigeria trip
Arsenal are finalising plans for a pre-season tour of Nigeria this summer, in what will be their first visit to Africa......

Town green legal review granted
Campaigners who want the site of a planned stadium to be legally recognised as a town green are granted permission for a judicial review hearing......

Failed football scheme cost 6m
A now-defunct football coaching scheme operating that left hundreds of teenagers without qualifications cost taxpayers 6m, the BBC learns......

VIDEO: How cruise ship deviated from route
Following the deadly capsizing of Costa Concordia off the coast of Italy, the value of shares in parent company Carnival Cruise Lines fell some 20%......

VIDEO: Bailey: No knowledge of hacking at Mirror
Trinity Mirror Chief Executive Sly Bailey said it had not investigated whether there was hacking at the group's titles following phone-hacking convictions at News International......

VIDEO: Battlefield games come to life
A growing number of military personnel are starting up their own businesses when they leave the forces......

AUDIO: UK 'trading centre' for China currency
The Chancellor, George Osborne the UK can become a new global hub for trading in the Renminbi, the Chinese currency......

AUDIO: Will users pay for online banking?
Stephen Whitehouse from Pricewaterhouse Coopers explained why online banking was rising in popularity......

VIDEO: Clegg calls for 'John Lewis economy'
The Deputy Prime Minister, Nick Clegg, has called for more companies to follow the "John Lewis" model, where firms offer shares to their employees......

VIDEO: Where is the all the metal going?
MPs have called for a change in the law governing the trade of scrap metal to stop "metal laundering" with a private member's bill to go before Parliament later this week......

AUDIO: Cost of retail crime over 1.4 bn
Commissioner Adrian Leppard from City of London Police told Radio 5 live why retail crime is on the rise......

Boost for City's China trade
Robert Peston: The City is set to become a key centre for trading China's currency.....

Will pound shops raise prices?
High inflation could force all pound shops to raise prices.....

Ex-servicemen starting businesses
Some ex-military personnel are choosing to start their own firms.....

Globe-trotting executives
Globe-trotting executives who can spend months away from home.....

Who'll take the high road? Scotland's economy after independence
What would be the economic impact of independence?.....

Detroit sees slow lane recovery
Growth in US car industry hits the vast market for used cars......

Fast internet access 'essential'
Reliable access to the internet is a "basic essential" for Highlands.....

Sarkozy says governments should not be defined by ratings
Jan. 16 - French President Sarkozy says the latest S&P downgrade of France's prized triple-A rating will not affect economic reform. Deborah Lutterbeck reports......

France plays down AAA loss
Jan.16 - French President Nicolas Sarkozy was on a visit to Spain as his country mulled over S&P's downgrade. His finance minister said France needed diversity and a strong banking system to weather the storm. Joanne Nicholson reports.....

Costa Cruises CEO blames 'human error'
Jan.16 - Carnival Corp, the owner of the cruise ship that capsized off Italy's west coast, estimates the impact to 2012 earnings for loss of use alone to be around $90 million. The group said it also anticipated further costs to the business. It's sh.....

Carnival counts cost of cruise crash
Jan.16 - Carnival Corp, the owner of the cruise ship that capsized off Italy's west coast, estimates the impact to 2012 earnings for loss of use alone to be around $90 million. The group said it also anticipated further costs to the business. It's sh.....

Europe Day Ahead: Tuesday
Jan. 16 - A look ahead to the key events on Tuesday including the troika in Athens, Spain's debt auction, UK CPI and Citi earnings......

Nigeria slashes petrol prices
Jan. 16 - Nigeria's government tries to end mass protests and strikes with lower petrol prices after end of petrol subsidy causes uproar. Jessica Gray reports......

Europeans blast S&P downgrades
Jan. 16 - European residents question the methodology behind the S&P downgrades, and argue it will lead to further austerity in the bloc......

Greek PM: debt talks can be resolved
Jan. 16 - Greece's Prime Minister Lucas Papademos says he's confident a deal between Athens and private creditors on a crucial debt swap plan can be reached in time, despite mounting fears Greece is teetering close to default. Joanna Partridge report.....

ECB steps up government bond purchases
Jan. 16 - The European Central Bank more than tripled its buying of sovereign debt in the second week of 2012. Analysis with Christoph Rieger, head of interest rate strategy at Commerzbank......

Shares, euro steady after downgrade
Jan. 16 - European shares and the euro recovered from early losses in the wake of a mass downgrade of euro zone sovereign ratings but trading was choppy with U.S. markets closed. Joanne Nicholson reports.....

Downgrade in 60 seconds
Jan. 16 - European politicians and market analysts grapple with S&P's decision to downgrade nine of the euro zone's 17 countries......

Reuters Breakingviews: S&P downgrades hit New Year hopes
Breakingviews......

Britain makes a pitch to Beijing to avert a recession at home
Jan. 16 - Cathy Yang listens in as the UK's George Osborne makes a pitch for a new alliance between Britain and Asia......

Inside the News: Equities Slide on S&P Euro Zone Downgrades
Jan. 16 - S&P says euro zone policymakers have misdiagnosed the problem after downgrading France and Austria. European shares suffer in early trade......

Japan's Sumilox reopens Thai plant
Jan. 16 - Japan's Sumilox is the first to reopen its factory at the Rojana Industrial Park in Ayutthaya. Arnold Gay reports......

Asian shares fall as euro fears return
Jan. 16 - Asian shares fall Monday, on fears a mass downgrade of European sovereign debt ratings would further aggravate funding difficulties in the region. Arnold Gay reports......

Taiwan-China relations on track with Ma's re-election
Jan. 16 - Taiwanese voters give President Ma Ying-jeou a renewed mandate to press ahead with economic ties and other links to China. Lisa Yuriko Thomas reports......

Market Pulse: S&P warns more downgrades possible
there's a 1 in 3 chance of more euro zone sovereign downgrades......

Hungarian right demands EU exit
Jan 15 - Thousands of far-right activists rally against the EU in the Hungarian capital Budapest, calling for Hungary's exit from the bloc. Rough Cut (no reporter narration)......

E.ON and ScottishPower complete Big Six price cuts
E.ON and ScottishPower both announced price cuts on Monday, becoming the final two suppliers of the Big Six to enter the fray on household bills since EDF Energy kicked off a price war last week.<img width='1' height='1' src='http://telegraph.feed.....

Eurozone's 'big bazooka' bail-out fund is left in tatters by S&P downgrade
Plans for a 1 trillion "big bazooka" to stem the debt crisis have been crushed as Standard & Poor's stripped the European Financial Stability Fund of its AAA credit rating.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726.....

Oil prices rise on Iran's threats to cut off Strait of Hormuz
Oil prices climbed 70 cents to $111.14 a barrel on Monday, after Iran issued fresh threats to cut off up to 17m barrels per day of oil supply from world markets by shutting down the Strait of Hormuz.<img width='1' height='1' src='http://telegraph......

RBS sells aviation business to Japanese bank Sumitomo
Royal Bank of Scotland has sold its aviation leasing arm for more than $7bn (4.7bn) after Japan's Sumitomo Mitsui Banking Corporation won the auction to buy the business.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568.....

Merkel won't be the one smiling if Germany loses its AAA rating too
Poor old Sarko. Fancy resorting to "scheduling problems" to get out of this Friday's hot date with Angela "triple A" Merkel.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bdf6993/mf.gif' border='0'/><br/&.....

Just who's got the cream in Robert Wiseman deal?
Arnold Schwarzenegger would struggle with this one. "Milk is for babies," he once declared. "When you grow up you have to drink beer."<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bdf6995/mf.gif' border='0'/&g.....

Carnival's investors are used to the cruise operator plying choppy waters
Long-term shareholders in Carnival might be forgiven a sense of deja vu today. A 16.5pc fall in the share price might be the biggest drop in the cruise ship operator's history, but its investors are used to choppy waters.<img width='1' height='1' .....

Tesco investors question executive share sale
Tesco shareholders have said the retailer must change its rules to ensure it does not repeat the controversial director's share sale, which emerged last week.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bdf5f.....

When, oh when, will Europe face the truth?
Countries with a triple-A credit rating are becoming an endangered species.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bdf5f71/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.c.....

KPMG earns 6.4m fees from Connaught collapse
The lucrative fees available to administrators of failed businesses have been laid bare after KPMG disclosed that it has already earned 6.4m handling the collapse of Connaught, the social housing contractor.<img width='1' height='1' src='http://te.....

Independent Scotland 'would have 270bn debt pile'
An independent Scotland could start life with a debt pile of as much as 270bn, equivalent to more than double its annual economic output, according to a report by advocacy group Taxpayer Scotland.<img width='1' height='1' src='http://telegraph.fee.....

Carnival shares plunge after Italian cruise ship disaster
Shares in Carnival, the owner of the Costa Concordia cruise ship, fell 16.5pc after the company warned the accident off Italy's coast would cost it at least $135m (88m).<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/5683.....

Debt crisis: as it happened January 16, 2012
S&P strips eurozone bail-out fund of AAA crown, saying it is "no longer fully supported by guarantees from EFSF members rated AAA", as Greece to send officials to US for talks with IMF over bond swap impasse.<img width='1' height='1' src='http.....

Debt Crisis: Live
Greece sends officials to Washington for talks with IMF as impasse over a bond swap deal with private bondholders raises concerns over a second, 130bn bailout for the country and fuels fears of a disorderly Greek default.<img width='1' height='1' .....

Merger murmurs give TUI Travel a day in the sun
TUI Travel waltzed into the spotlight on Monday after UBS initiated coverage on the holiday company with a "buy" rating and 220p target price.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bdf4589/mf.gif' borde.....

Europe still refuses to face economic reality
Telegraph View: EU leaders display a remarkable reluctance to address the root causes.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bdeed39/mf.gif' border='0'/><br/><br/><a href="http://da.fe.....

S&P cuts EFSF bail-out fund rating: statement in full
S&P has stripped the eurozone bail-out fund of its AAA crown, saying it is "no longer fully supported by guarantees from EFSF members rated AAA". Here is its statement in full.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/3.....

Rockhopper jumps on talk of Falklands stake sale
Rockhopper, the energy exploration group that has found significant oil reserves off the Falkland Islands, saw its shares jump 10pc, after saying it expected to find a partner for its discovery within three months.<img width='1' height='1' src='ht.....

Facebook 'to float in third week of May'
Facebook is expected to make its long-awaited initial public offering (IPO) in the third week of May, according to US reports.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bdeb6bb/mf.gif' border='0'/>.....

Clegg's plan for John Lewis economy is 'empty rhetoric'
Deputy Prime Minister Nick Clegg's call for an end to "crony capitalism" through a "decade of employee ownership" has been given a mixed reception by business.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bdeb.....

RBS attracts bidders for investment bank, raising hopes for jobs
EXCLUSIVE: Royal Bank of Scotland has received initial offers for all the investment banking businesses it is attempting to sell, raising hopes that many of the staff facing redundancy may be taken on by the buyers.<img width='1' height='1' src='h.....

Nestle to close Hayes coffee factory in streamlining
Nestl has unveiled plans to consolidate its coffee manufacturing operations in the UK with the closure of its factory in Middlesex at the cost of 230 jobs and the expansion of its Nescaf site in Derbyshire.<img width='1' height='1' src='http://tel.....

Review: Belkin's router turns a hotel room into an office
Neat and simple to use, Belkin's travel router that tackles a problem that should not exist<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bde3dd4/mf.gif' border='0'/><br/><br/><a href="http://.....

A4e pays 1m to former chief executive
Employment agency, A4e, whose motto is "improving people's lives", gave Robert Martin a bumper payout as he left the company<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bde3dd5/mf.gif' border='0'/>.....

Bovis expects further rise in house prices
Housebuilder Bovis Homes is forecasting another significant jump in profits this year after opening more sites, cutting costs, selling land and concentrating developments in the more prosperous south.<img width='1' height='1' src='http://telegraph.....