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Tuesday 17 January 2012

UK Financial News on 2012-01-17

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.....

UK inflation rate falls to 4.2%
Inflation fell sharply in December on the back of lower fuel and clothing prices, backing Bank predictions of a large drop in 2012......

Citigroup annual profits increase
US banking giant Citigroup saw annual profits rise 6% to $11.3bn in 2011, but fourth quarter figures disappoint......

Yahoo founder Jerry Yang resigns
Jerry Yang, co-founder and former chief executive of Yahoo!, resigns from the company's board......

Chinese economy slows at year end
China's economy, the world's second-largest, grew at its slowest pace in more than two years, latest government figures show......

Dixons' festive sales fall by 5%
The owner of Currys and PC World, Dixons Retail, reports a 5% drop in sales over Christmas as consumer confidence remains "fragile"......

Drop in eurozone inflation rate
The eurozone inflation rate fell to 2.7% in December, from 3% in November, according to official figures......

Premier Foods to cut 600 UK staff
Premier Foods announces plans to sell off more non-core businesses and cut about 600 staff in an attempt to double cost savings to 40m a year......

England rugby signs Lucozade deal
The RFU signs a four year partnership between English rugby and pharmaceutical giant GlaxoSmithKline......

Airbus sees record orders in 2011
Plane maker Airbus reports record orders for 2011 but warns that demand for new planes will fall sharply this year......

Urgent talks on Peacocks crisis
Efforts are being made to find a new investor to save one of the biggest companies in Wales from administration......

German investor confidence jumps
German investor sentiment improved markedly in January, reaching its highest level since last July, a closely-watched survey suggests......

EU in legal move against Hungary
The EU Commission threatens to take Hungary to court over controversial reforms to its central bank, data protection and judiciary......

Burberry sales up as China excels
Upmarket fashion retailer Burberry announces a 21% rise in fourth-quarter sales as Chinese growth continues......

Metro postpones sale of Kaufhof
German retailing giant Metro suspends plans to sell its Kaufhof department stores and reports "disappointing" Christmas sales......

RBS sells aviation arm for $7.3bn
Royal Bank of Scotland agrees to sell its aircraft leasing division to Japan's Sumitomo Mitsui Financial Group for $7.3bn......

Pension strikes begin at Unilever
Several thousand workers at consumer goods company Unilever are to start a further series of strikes over changes to their pension scheme......

Renewed surge in PPI complaints
A fresh surge in complaints about payment protection insurance drives up the total number of complaints going to the Financial Ombudsman Service......

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......

MPs warn over smart energy meters
The government must ensure that energy firms pass on to customers multi-billion-pound savings made by installing "smart" meters, MPs say......

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......

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

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

Olympus clears external auditors
An internal investigation into the accounting cover-up at Olympus clears external auditors KPMG Azsa and Ernst & Young ShinNihon of any wrongdoing......

Samsung eyes $42bn expansion plan
South Korea's Samsung Group says it will invest 47.8tn won ($41.7bn; 27bn) this year to expand its various businesses......

Tepco raises electricity prices
Tokyo Electric Power Company raises electricity prices for the first time in thirty years as it seeks to offset higher costs......

ITV in new football deal with FA
The Football Association signs a new two-year deal with ITV to show England internationals and FA Cup matches......

Quakers axe manager and players
Darlington's administrators terminate the contracts of the club's interim manager Craig Liddle and the remaining playing staff......

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......

VIDEO: Airbus announces record orders for 2011
Plane maker Airbus has reported record orders for 2011 but has warned that demand for new planes will fall sharply this year......

AUDIO: 'The Ikea edge'
Anders Dahlvig, former chief executive of Ikea, tells the Today programme's Simon Jack about the philosophy of the Scandanavian company......

AUDIO: What the Renminbi means for the UK
Linda Yueh, Bloomberg's economics correspondent reflects on the implications of plans to make the UK a major trading centre for China's currency, the Renminbi......

VIDEO: Predicting the future of travel
Are our travels routine and holidays stuck in a rut? Rajan Datar looks at the predictions for the future of travel......

AUDIO: Harman: We are fighting the cuts
Labour's deputy leader Harriet Harman responds to the Unite union's criticism of Labour's policy on the public sector pay freeze......

VIDEO: London to become yuan trading hub
UK Chancellor George Osborne announces plans to make London a major international centre for trading China's currency.....

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......

The Wealth Gap - Inequality in Numbers
The startling statistics fanning the flames of the inequality debate.....

Asia mixes old customs with making money
Asia mixes ancient customs with making money.....

Mall v internet: Mid East goes online
Can ecommerce conquer the Middle East?.....

The trials of starting a firm at 24
Facing the challenges of starting a company at 24.....

UK 'trade hopes for China's yuan'
The BBC's Stephanie Flanders looks at China's currency plans.....

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.....

U.S. Day Ahead: Goldman Q4 results could be very ugly
Senior Analyst John Kozey says StarMine shows high chances of a miss when Goldman Sach's reports fourth-quarter results before the bell......

Vanguard ETFs take share from rivals
Jan. 17 - Though BlackRock's market share in the $1 trillion U.S. ETF market continues to lead its rivals, Vanguard is making strides to attract investor funds with lower costs and an expanding sales staff......

Delta likely to beat Q4 earnings expectations: StarMine
Jan. 17 - StarMine's Sri Raman says the most accurate equity analysts predict a solid earnings beat from Delta, but thinks that AT&T and Regal Entertainment could miss estimates......

Trading at Noon: Wall St. jumps after China data
Jan. 17 - U.S. stocks gained in early trading as Chinese data fueled the belief the government may move to stimulate growth, overshadowing recent credit downgrades in Europe......

Cruise companies' Costa Concordia concerns
The capsizing of the Costa Concordia off the Italian coast has come at the busiest time of year for cruise bookings. As cruise operators assess the impact of the disaster, some industry experts say it should spur a review of safety at sea. Joanna Par.....

Europe hurts Citi, loans help Wells
Jan 17 - America's third and fourth largest banks released mixed results showing the European debt crisis is hurting investment banking operations, but better conditions in the lending market is providing a boost. Conway G. Gittens reports......

Private Eye editor on hacking scandal
A respected British editor lays the blame for the country's phone-hacking scandal at the door of politicians and police, saying new rules are not necessary to govern the actions of journalists......

U.S. Week Ahead: Goldman earnings may lose their mojo
Breakingsviews Columnist Antony Currie says Goldman Sachs could disappoint when it reports fourth-quarter earnings on Wednesday......

Bailout fund in focus
Jan. 17 - The markets were little changed following S&P's downgrade of the European Financial Stability Facility but analysts say it could cause difficulties further down the line. Joanne Nicholson reports.....

Europe Day Ahead: Wednesday
Jan. 17 - A look ahead to Wednesday in Europe including UK jobless data, Mario Monti meeting David Cameron, Goldman Sachs results and a new James Bond exhibition in Britain......

European car sales slump
Jan. 17 - European car registrations accelerated their decline in December, led by a sales slump at PSA Peugeot Citroen, the region's second-biggest automaker, according to data from the ACEA European auto industry association. Hayley Platt reports......

Morning Briefing: Mixed bag of U.S. bank earnings
Jan. 17 - Citigroup misses earnings expectations, while Wells Fargo reports a 20 percent rise in profits, topping the consensus......

Reuters Breakingviews: France could waste downgrade
Breakingviews......

Euro bounces after surprise jump in German ZEW data
Jan. 17 - The headline ZEW economic sentiment index posts an unexpected gain in January......

Inside the News: Chinese data eclipses EFSF downgrade
Jan. 17 - China growth slows to a 30-month low but still beats forecasts and S&P loses its power to shock as investors shrug off a downgrade for the euro zone's bailout fund......

Brakes on China's growth engine
The Chinese economy slowed to its weakest pace in 2-1/2 years last quarter, with further slides likely in the face of falling exports and a sluggish housing market......

Chinese eyes on home-grown haute couture
Jan. 17 - Local designers are making their mark on China's lucrative luxury market as buyers favour a new cultural sophistication. Tessa Dunlop reports......

U.S. Morning Call: Stock futures rise, earnings ahead
Jan. 17 - U.S. stock futures are pointing to a higher open as investors brushed aside S&P's downgrade of the EU's EFSF bailout fund, and several companies gear up to report earnings today......

More pain ahead for Chinese economy
Jan. 17 - Chinas economy slows in the final quarter of 2011, with more pain ahead as demand for its exports slows and the property market stutters. Arnold Gay reports......

Market Pulse: Euro gains likely short-lived - Kimberley
FX Analyst, Neal Kimberley......

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......

Peacocks' wings have been clipped by many
No one emerges with much credit from the debacle that is Peacocks - the discount retailer that currently stands on the brink of collapse, putting 12,500 jobs at risk.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/.....

DS Smith shows G4S how to do it
Where G4S failed, DS Smith succeeded. Both had rational deals but where G4S's 5.2bn bid for ISS was badly executed, DS Smith's 1.3bn bid for SCA has been well choreographed.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/.....

Innospec former director pleads guilty to bribery charges
A former director of international chemicals group Innospec has pleaded guilty to three charges relating to bribery in Iraq and Indonesia.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1be83a48/mf.gif' border='0.....

Stobart seals controversial property purchase from directors
Transport group Stobart has completed a controversial 101m property deal with directors Andrew Tinkler and William Stobart.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1be83a49/mf.gif' border='0'/><br/&g.....

Coalition's demonisation of UK firms won't help them as they look East
One of the noticeable achievements of the Coalition has been its championing of trade. From the start, British exports have been high on the agenda, along with efforts to attract overseas investment into the UK.<img width='1' height='1' src='http:.....

Greece prepares to give way to banks to secure debt deal
Greek government and international officials have signalled they will yield to the demands of banks and hedge funds in order to secure a bond deal before the end of the week.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f.....

Debt crisis: as it happened January 17, 2012
IMF chief Christine Lagarde to explore ways to "defuse current global economic weaknesses", as lead bank negotiator for holders of Greek debt confirms he will return to Athens on Wednesday for further talks.<img width='1' height='1' src='http://te.....

Debt crisis: live
Strong German confidence figures and a satisfactory Spainish bond sale have lifted the euro and strengthened European stock markets, offsetting fears over a looming Greek default.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32.....

Scrutiny of the pub industry is welcome but MPs must tackle rise in beer duty
Successive Governments have not been on the receiving end of much praise in their handling of regulation and taxation in the pub sector in recent years.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1be802f0/mf......

Battenburg slices to take on Mars Bars in Premier Foods' fight back
Judging by Tuesday's share price movement, you might have thought Premier Foods had won a contract to supply London 2012 with Olympic quantities of Sarsons vinegar.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/.....

Cinven buys ICG's patents business for 950m
Intermediate Capital Group (ICG) has signed a deal to sell CPA, its patent business, to private equity firm Cinven for 950m.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1be7867c/mf.gif' border='0'/><br/&.....

Premier Foods cuts 600 jobs as it seeks debt deal
Shares in Premier Foods jumped after hopes were raised that Britain's biggest food manufacturer was closer to securing a deal with its banks.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1be79e44/mf.gif' border.....

Hungary faces ruin as EU loses patience
The European Commission has launched legal action against Hungary's Fidesz government for violations of European Union treaty law and erosion of democracy, marking a dramatic escalation in the war of words with the EU's enfant terrible.<img width=.....

DS Smith shares jump after 1.3bn Swedish deal
Shares in DS Smith jumped 3.2pc on Tuesday, despite the company unveiling a deeply-discounted rights issue as part of a 1.6bn (1.3bn) deal to buy Sweden's SCA Packaging.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/5683.....

Engine stalls over lack of funding to go into production
Cubewano's products have been successfully tested in the US and UK<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1be78a7e/mf.gif' border='0'/>.....

Investors attempt to kick the tobacco habit
With smokers throwing their cigarettes in the bin come January as they vow to stub out their craving, it appears that investors in tobacco companies are similarly trying to go cold turkey.<img width='1' height='1' src='http://telegraph.feedsportal.....

FTSE 100: Miners rise on China growth optimism
Heavyweight miners helped haul the large-caps higher as fourth-quarter economic growth data from China boosted the demand outlook for the sector.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1be3b188/mf.gif' bo.....

Citigroup signals Europe must do more to ease fears of a 'complete disaster'
Citigroup signalled that Europe's leaders need to do more to ease fears of a 'complete disaster' in the region, as the crisis knocked fourth-quarter profits at one of America's biggest banks.<img width='1' height='1' src='http://telegraph.feedspor.....

Olympus panel clears auditors in accounting scandal
Former auditors of Japanese electronics giant Olympus, KPMG and Ernst & Young, have been cleared of any wrongdoing in the $1.5bn (977m) accounting scandal gripping the company.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/3.....

IG Group benefits from bets on eurozone crisis
Clients taking a punt on volatile markets saw IG Group post a 28pc rise in first-half profits.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1be74767/mf.gif' border='0'/><br/><br/><a href="http.....

'Sue us if you want compensation' Concordia survivors told
Costa Cruises told shipwrecked passengers they should "sue the company if they want compensation", according to survivors of Costa Concordia disaster.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1be71c9c/mf.gi.....

Burberry beats expectations with Asian sales surge
Luxury fashion business Burberry beat analysts' sales estimates for the last three months of 2011 as key markets including the UK, France and China defied the downturn.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56830.....

Taylor Wimpey continues upbeat trend for housebuilders
Housebuilder Taylor Wimpey expects a 75pc leap in annual profits, after it hit its target of achieving double-digit margins last year.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1be7104a/mf.gif' border='0'/&g.....

UK inflation drops to 4.2pc as shops cut prices
Inflation fell sharply to 4.2pc in December from 4.8pc in November as aggressive discounting on the high street and lower gas and petrol prices offered some respite to the embattled British consumer.<img width='1' height='1' src='http://telegraph......

IKEA should be broken into three, says former CEO
IKEA has become too big and should be broken up, the former chief executive of the world's number one furniture retailer has said.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1be6d6f0/mf.gif' border='0'/>&l.....