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Wednesday 18 January 2012

UK Financial News on 2012-01-18

UK unemployment continues to rise
UK unemployment rose by 118,000 in the three months to November to 2.69 million, with the number of young people looking for work at a new record......

Goldman Sachs cuts pay to $12bn
US banking giant Goldman Sachs cuts its pay and bonus payments by 21% to $12bn in 2011, as profits halve due to economic uncertainty......

Mr Osborne and the semiotics of GDP
The chancellor admits for first time that the UK economy might have shrunk in the last three months of 2011......

IMF seeking $500bn funding boost
The International Monetary Fund wants to increase its resources by $500bn (325bn) to help stabilise the global economy......

EBay reports jump in its profits
Internet auction site eBay reports a jump in profits, helped partly by the sale of its remaining stake in Skype......

Peacocks goes into administration
Clothing retailer Peacocks goes into administration, with its chief executive telling staff he has done all he can to save the company.....

Insurers fined for file tampering
Insurance firms Direct Line and Churchill - both owned by the RBS group - have been fined 2.17m for tampering with customer complaint files......

Greece sees debt deal by weekend
Greek Finance Minister Evangelos Venizelos says his country might be able to reach a deal with private creditors by the end of the week......

Germany cuts its growth forecast
Germany, Europe's largest economy, lowers its economic growth forecast for 2012, a sign of the impact of the debt crisis......

Developing world warned of shocks
The World Bank warns developing countries that they need to be prepared for shocks as it revises down its forecasts for global economic growth......

Pension strikes begin at Unilever
Thousands of workers at consumer goods giant Unilever are starting 11 days of strike action in protest at changes to their pension scheme......

Thames Estuary airport considered
Controversial plans for a new airport on an island or peninsula in the Thames Estuary will be included in a formal consultation on UK aviation......

UK hydrogen cars project launched
A joint initiative between the UK government and 13 companies has been launched to try to make hydrogen-powered cars a commercial success......

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

'Worst' December for Scots shops
Scottish shopkeepers report their worst December since at least 1999, according to the Scottish Retail Consortium......

Wetherspoon's sales increase 3.6%
Pub chain JD Wetherspoon says trading has remained "resilient" after reporting an increase in sales for the past three months......

China data shows cooling economy
Chinese property prices and foreign direct investment figures show the economy is cooling......

Feng shui sees 'sluggish' stocks
Investors are unlikely to see fiery returns in the Year of the Dragon, according to an index based on feng shui......

Dove design for BA Olympics plane
British Airways planes will be repainted in a dove design to mark the London 2012 Games......

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......

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......

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

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......

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......

BHP eyes record iron ore output
BHP Billiton says it expects record iron ore production in the current financial year, despite concerns of a global economic slowdown......

Essar shares fall on India ruling
India's Essar Energy sees a quarter of its market value wiped off after the Supreme court said it could not defer tax payments......

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

Houghton rules out Quakers offer
Former chairman George Houghton removes himself from the running to take over Darlington Football Club, and claims the club is a lost cause......

Bain drops Rangers tax debts move
Rangers former chief executive Martin Bain has dropped a legal bid to secure more details of the club's finances......

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

AUDIO: 'Let's hope Peacocks pulls through'
The clothing chain, Peacocks, has gone into administration, putting around 9,600 jobs at risk......

VIDEO: Changing face of the UK High Street
People reminisce about shops that no longer appear on our High Street.....

VIDEO: 'Economic environment is difficult'
The Chancellor, George Osborne, has said the UK economy "will be difficult", with negative GDP reults released next week......

VIDEO: Youth concern as unemployment rises
The BBC's Nick Ravenscroft has been getting reaction from people at the Bolton Lads and Girls Club, where training is available for those looking for work......

AUDIO: Wetherspoons boss: Euro must go
Tim Martin, founder and chairman of JD Wetherspoon speaks the Today programme's Simon Jack about the latest rise in sales figures......

VIDEO: Two insurers fined for file tampering
Insurance firms Direct Line and Churchill have been fined 2.17m for tampering with customer complaint files before submitting them to the Financial Services Authority......

VIDEO: Hydro power for Scots energy firm
Scottish Water announces plans to generate more of its own electricity using hydro power......

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......

Fitting brakes to the pay merry-go-round
How can the brakes be put on the merry-go-round?.....

Colman's staff keen on pensions protest
Angry Colman's staff fight to stop pension cuts.....

From banker to ice cream maker
Former banker starts ice cream business.....

China seeks more Australian cows
A growing thirst for milk in China is met by beasts from Australia.....

How do packaged accounts work?
Are the extras in some bank accounts worth it?.....

Viewpoint: For and against privacy protest
Supporters and opponents of protest share their views.....

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

U.S. Day Ahead: Look deeper into BofA results
Breakingsviews Columnist Antony Currie says don't take the financial titan's fourth-quarter results at face value when it reports before the bell......

Pay cuts help Goldman beat forecasts
Jan 18 - Goldman Sachs announced better than expected earnings thanks in part to cost cutting, but profits still sank 56 percent. Bobbi Rebell reports......

World Bank slashes global forecast
Jan 18 - As the World Bank cuts its global economic growth forecasts due to the European debt crisis, new data out of the United States adds further evidence that country's economic rebound is strengthening. Conway G.Gittens reports......

Trading at Noon: Wall St. rises on IMF hopes, Goldman
Jan. 18 - U.S. stocks rose on optimism the International Monetary Fund would be able to raise additional funds to help combat Europe's debt crisis and after Goldman Sachs' earnings beat estimates......

Google's initiatives in mobile more important than earnings
Jan. 18 - S&P's Scott Kessler says investors will watch what Google says about its initiatives to expand mobile offerings and for updates on its acquisition of Motorola Mobility during the Q4 conference call......

Google's initiatives in mobile more important than earnings
Jan. 18 - S&P's Scott Kessler says investors will watch what Google says about its initiatives to expand mobile offerings and for updates on its acquisition of Motorola Mobility during the Q4 conference call......

Monti aims to reduce debt, boost growth
Jan. 18 - Italian Prime Minister Mario Monti has met with his British counterpart David Cameron to discuss promoting growth, at a time when Britain's unemployment has hit a 17-year high and Italy is trying to get its debt under control. Joanna Partri.....

Sarkozy clash with unions over labour reforms
Jan. 18 - At an emergency summit to announce proposals to change legislation, the French President hoped to make headway in addressing the country's unemployment. Union leaders said they wouldn't be rushed into the changes. Joanne Nicholson reports......

Morning Briefing: Goldman Sachs profits fall, shares rise
Jan. 18 - Goldman Sachs fourth-quarter profit fell 56 percent, but the bank managed to beat analysts' expectations, leading its shares higher......

Record orders for Airbus
European plane maker Airbus says it achieved record sales in 2011, moving further ahead of arch rival Boeing......

Panama Canal workers go on strike
Jan. 18 - Some 6,000 workers involved in the expansion of the Panama Canal go on strike calling for higher wages. Nick Rowlands reports......

U.S. Morning Call: Shares up as Yang leaves Yahoo
Jan. 18 - Yahoo is in the spotlight after co-founder Jerry Yang quit the company. Analysts say the move could help Yahoo complete a deal to transform itself......

Reuters Breakingviews
global commentary unit Breakingviews......

UK Minister reacts to the latest unemployment data
Jan. 18 - Chris Grayling, the Minister for Employment, speaks to Insider about the latest UK data......

Jet shop reaches for the sky
Jan. 18 - The Jet Business, an aircraft broker, has opened the world's first corporate aviation showroom for business jet aircraft in London's Hyde Park Corner. Hayley Platt reports......

Asia no refuge for investment bank job seekers
As high-paying finance jobs disappear in Europe and the US, many young bankers have been looking to Asia. But the grass isn't always so green on the other side of the pasture, reports Jon Gordon......

Reuters Today: Greece goes head-to-head with creditors
Jan. 18 - A look at the early action in the European markets and the day's hot stocks, as well as a final wrap-up of Asia trading......

China stumble won't keep star investor Bolton down
Even after his Special Situations Fidelity fund tanked in 2011, losing about a third of its value, Anthony Bolton says China still has the world's hottest opportunities......

Olympus board to stay until late April
Jan. 18 - Olympus management staying for another three months despite over half being sued for mismanaging the company. Arnold Gay reports......

Osborne and Azumi agree on more IMF funds for crises
Jan. 18 - Britain's finance minister George Osborne and his Japanese counterpart, Jun Azumi, stay focused on the euro zone crisis. Arnold Gay reports.....

Greece homeless crisis escalates
Jan. 18 - Unable to pay their debts, a new wave of homeless Greeks have been forced onto the streets stretching government resources even further. Simon Hanna reports......

Wikipedia is going dark
Jan. 17 - Wikipedia is temporarily going dark in protest to anti-piracy legislation in the United States......

Asia banking jobs crunch
Jan. 18 - As high-paying finance jobs disappear in Europe and the U.S., many young bankers have been looking to Asia. But the grass isn't always so green on the other side of the pasture. Jon Gordon reports......

Market Pulse: IMF extra funds reports built on sand - Reuters FX analyst
FX analyst Neal Kimberley says the gains could soon falter......

Outcry over austerity in Greece
Jan. 17 - Unions in Greece protest austerity measures -- warning the government against more cuts. Deborah Lutterbeck reports......

BA's Willie Walsh says he will not be checking in at 'Boris Island'
Willie Walsh would like to make one thing clear: he ain't going to Boris Island unless he's dragged there.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bf0b60d/mf.gif' border='0'/><br/><br/><.....

Willie Walsh's airline winners and losers
Ask Willie Walsh for the three most impressive airline executives he has met since his days as an Aer Lingus pilot and he picks two from low-cost carriers.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bf0b26e/.....

Taxpayers face new 17.5bn IMF bail-out bill
International Monetary Fund makes request for an extra 17.5 billion to help bail out struggling European countries.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bf0ad0a/mf.gif' border='0'/><br/><br.....

Greece fails to reach agreement with creditors
Greece failed to reach an agreement with its international creditors on Wednesday, further extending the critical bondholder talks.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bf0ad0d/mf.gif' border='0'/>&.....

Rupert Murdoch tweets his fury at Google in US piracy row
Rupert Murdoch has used Twitter to attack Google, after the search giant joined Wikipedia in protesting against anti-piracy legislation in the US.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bf0ad0e/mf.gif' b.....

Doubt over IMF's eurozone lifeline
Traders were unconvinced by a radical proposal by the International Monetary Fund to deploy $1 trillion to stem the European debt crisis and its impact on the global economy.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f.....

Shell partners with Tullow Oil for Atlantic exploration
Shell is to partner with Tullow Oil to explore new frontiers of the Atlantic in the search for "transformational" discoveries of oil and gas.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bf0684a/mf.gif' border.....

China's property price slide gathers speed
Property prices are falling at an accelerating rate across China and unsold inventories have reached the highest level in recent history, raising concerns monetary tightening may have gone too far.<img width='1' height='1' src='http://telegraph.fe.....

The Scottish independence debate needs pragmatism not Braveheart
As the Scottish independence debate gets started what's clear to me is that Braveheart and Bannockburn have no place in this issue, nor indeed should rhetorical myths designed by politicians to polarise through fear.<img width='1' height='1' src='.....

Essar Energy could 'default' on debt restructure
Essar Energy's subsidiary, Essar Oil, could breach the terms of its $1.65bn (1.1bn) corporate debt restructuring agreement unless it can successfully appeal a court judgment on how it pays tax.<img width='1' height='1' src='http://telegraph.feedsp.....

Debt crisis: as it happened January 18, 2012
Conservative backbencher attacks IMF attempts to increase resources to tackle eurozone contagion that will see Britain stump up a further 15bn, while German finance minister doubts US will support the plan.<img width='1' height='1' src='http://tel.....

Peacocks collapses after last-minute rescue bid is rejected
High street retailer Peacocks collapsed into administration last night amid bitter recriminations after lenders rejected a 50m-plus rescue bid.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bf065ba/mf.gif' bord.....

Where are all the jobs? - in pictures
Unemployment hit a 17-year high this week, with 100 people applying for every three jobs in some parts of the country. However, there are still some bright spots in the UK jobs market. Here are the best and worst sectors for job vacancies, according .....

Calls for action on 'jobs crisis' as unemployment rises again
Business leaders and unions pleaded with the Government to do more to help the private sector create jobs, after grim figures led to claims that Britain is in a "full-blown jobs crisis".<img width='1' height='1' src='http://telegraph.feedsportal.c.....

Public sector strike was top online shopping day
The busiest online shopping day of last year was the day of a mass public sector strikes.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bf03035/mf.gif' border='0'/><br/><br/><a href="http://da.....

Debt crisis: live
Conservative backbencher attacks IMF attempts to increase resources to tackle eurozone contagion that will see Britain stump up a further 15bn, while German finance minister doubts US will support the plan.<img width='1' height='1' src='http://tel.....

New Lotus owner 'open to options' including a sale
British sports car maker Lotus could be sold after a new owner took control of its Malaysian parent company.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bf03036/mf.gif' border='0'/>.....

Hungary PM hopes for quick remedy to dispute with EU
European Union concerns over Hungary's disputed laws on its central bank and judiciary can be resolved swiftly, Prime Minister Viktor Orban tells the European Parliament in an effort to stave off legal action by Brussels and win an aid package from t.....

Dong! Rip-off Britain makes its return
What goes around comes around. If Ed Milliband's declaration of war on "rip-off Britain" sounds strangely familiar, that's because it is.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bf01473/mf.gif' border='0'.....

Goldman Sachs sees opportunities in eurozone crisis
Goldman Sachs is starting to see "some glimmer of opportunities" in Europe from a crisis that sent profits at the Wall Street bank tumbling last quarter.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1bf01029/mf.....

Rolls-Royce reverses as blue-chips mark time
While London's benchmark index was stuck in neutral for much of the day, Rolls-Royce reversed as Square Mile scribes cautioned that the market was being "complacent" about potential challenges ahead.<img width='1' height='1' src='http://telegraph......

US manufacturing sector keeps growing
America's manufacturing industry expanded for the tenth quarter in succession in the final three months of last year, underlining the resilience of a key sector of the economy.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726.....

BP 'surprised' by exploration wins after Gulf of Mexico disaster
Energy giant BP's chief executive has said he was "surprised" that the company had not been more hindered in its oil and gas exploration plans in the wake of the Gulf of Mexico disaster.<img width='1' height='1' src='http://telegraph.feedsportal.c.....

Fidelity backs Government on executive pay reforms
Fidelity, the fund manager with stakes in some of Britain's biggest companies, has thrown its weight behind Government efforts to crack down on excessive corporate pay.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56830.....

FTSE 100: Tullow Oil sinks as blue-chips mark time
A decline in production sent Tullow Oil shares down as the FTSE 100 hit resistance at the 5,700 level as the International Monetary Fund pledged to increase its lending resources.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32.....