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Wednesday 25 January 2012

UK Financial News on 2012-01-25

Fed not to raise rates until 2014
The Federal Reserve says it does not now expect to raise interest rates in the US until late 2014, sending the dollar lower......

UK economic activity shrinks 0.2%
UK economic activity fell by 0.2% in the last three months of last year, according to official government figures......

Merkel says 'big rethink needed'
Germany's Chancellor Angela Merkel tells the World Economic Forum that a "big rethink" is needed in the eurozone within the global economy......

IMF warns of Iran oil shock risk
The International Monetary Fund warns of a possible 20-30% spike in oil prices if Iranian exports are disrupted......

O2 apology for mobile disclosure
Mobile network O2 apologises for a problem that could have exposed users' mobile phone numbers to websites......

Winter spurt in mortgage lending
Gross mortgage lending by the major UK banks reached its highest monthly level of the year in December, figures show......

Obama takes jobs messages on tour
US President Barack Obama begins a three-day tour to highlight his economic agenda , visiting five states seen as vital to his re-election bid......

Punch insider trader in 7m fine
A US hedge fund is handed a 7.2m fine by the UK financial markets watchdog for trading on inside information about Punch Taverns......

Bank committee sees fears easing
The Bank of England's Monetary Policy Committee says the risk of the eurozone crisis spreading to the banking system has reduced......

Surge in plane sales lifts Boeing
Boeing reports a sharp rise in profits, thanks in part to stronger sales of commercial planes......

Apple in record $13.06bn profits
Apple reports record-breaking $13.06bn profits for the three months to 31 December 2011, up 118% from the same period last year......

Government loses appeal on solar
The UK government has failed in an appeal against a decision which blocked its attempts to reduce solar power subsidies......

Deutsche Post told to repay aid
The European Commission tells Deutsche Post DHL to repay between 500m euros ($648.3m, 415.9m) and 1bn euros in state aid......

EU confirms data penalty proposal
The European Commission proposes an overhaul of data protection laws, including large fines for firms that breach the rules......

Backlash over Google privacy move
Critics question whether Google's privacy changes will simplify settings or give users less control......

Deadline shift for pension reform
Full implementation of a scheme to automatically enrol workers into a pension scheme will be in place three years later than first planned......

Bill Gates school mystery speaker
When a south London secondary school asked for an inspiring guest speaker to talk to their pupils, they didn't expect Bill Gates to turn up......

Lagerfeld launches online range
Karl Lagerfeld is the latest designer to launch a collection online, taking advantage of growing internet fashion sales......

Peacocks 'exchanges now accepted'
Shoppers who want to exchange goods bought at Peacocks can now do so, say administrators acting for the troubled retailer......

National Savings cuts saving rate
The government savings body, National Savings & Investments, cuts the interest rate on its main savings account, the Direct Saver, to 1.5%......

Scottish insolvency figures fall
The number of Scottish going bust fell in the last quarter but remain higher year-on-year, according to official figures......

Japan posts annual trade deficit
Japan announces its first annual trade deficit in more than 30 years, a setback for a country known for its exports......

Bosses 'doubt business prospects'
More than 60% of London company leaders believe the prospects for their business will not improve in the next 12 months, a survey finds......

German business confidence rises
German business confidence has risen for the third month in row, reflecting a "positive" start to the year for Europe's biggest economy, a survey suggests......

Norwegian signs $22bn plane deal
Low cost airline Norwegian Air Shuttle says it has signed a deal to buy 222 new planes from Airbus and Boeing for a cost of 127bn Norwegian krone......

WH Smith says sales are 5% lower
WH Smith said its sales have slipped on the previous year but says its profit will still be in line with expectations......

Conoco reaches spill payout deal
Conoco Phillips and China National Offshore Oil Corporation agree a compensation deal for the oil spill at their field in China......

Redknapp 'scoffed at tax saving'
Harry Redknapp told a reporter he had no need to try to save 30,000 by dodging tax, a court hears......

Pompey hit by winding-up petition
Portsmouth are issued with a winding-up petition by HM Revenue and Customs over an unpaid 1.6m tax bill......

Allen Stanford fraud trial begins
Texas financier Allen Stanford pleads not guilty to 14 counts of fraud and money laundering on the first day of his trial in Houston, Texas......

VIDEO: Adapting to a new economic reality
UK economic activity shrank by 0.2% in the last three months of last year according to official figures......

VIDEO: The entrepreneur who gave away $100m
Dame Stephanie Shirley has made a fortune and given most of it away......

VIDEO: Is the UK's recovery at risk?
The BBC's Aaron Heslehurst on why the UK economy went into reverse at the end of last year - and Japan's first trade deficit in more than 30 years......

AUDIO: 'Lack of skilled workers a problem'
Site Manager at Moog Controls, Steve Hawkins, told Radio 5 live that not enough skilled workers were applying for jobs......

VIDEO: Alexander denies economic dogma
Jeremy Paxman challenges Chief Secretary to the Treasury Danny Alexander about the drop in UK economic activity, accusing his party of collaborating with a doctrinaire Conservative economic experiment which is not working......

VIDEO: Lobbyists 'should not be ashamed'
Mark Adams spoke up for the lobbying profession, claiming they had no reason to be ashamed of their work......

AUDIO: Gates: Capitalism a 'phenomenal system'
Bill Gates talks to the Today programme's Evan Davis about capitalism, philanthropy and US politics......

VIDEO: Businesses worried about GDP figures
The British economy shrank by 0.2% in the final quarter of last year - according to the latest figures for GDP.....

How to build an empire out of a bikini
How do you start your own swimsuit company?.....

Salmond's rate of exchange
What currency would an independent Scotland use?.....

Trade unions: Not dead yet
Why trade unions aren't coming to an end just yet.....

How the toy market is going for gold
The toy manufacturers hoping for their own golden moment.....

Opportunity for China to rebrand
The Chinese New Year is an opportunity to rebrand.....

The search for e-commerce 3.0
The search for e-commerce 3.0.....

Firms use charities to cut taxes
UK businesses exploit charity tax break to cut bills.....

U.S. Day Ahead: Obama bets on the economy in Sin City
Columnist David Rohde says expect business as usual in the run-up to the election......

Fed pledge will decrease bond market volatility: Barclays
Jan. 25 - Barclays' Michael Pond says that while the Fed's promise to keep rates exceptionally low until late 2014 will cut bond market volatility, the central bank doesn't have a good record in its forecasts......

Inside the Fed lockup
Correspondent Pedro Da Costa breaks down the latest Federal Reserve statement from inside the lockup at the U.S. Treasury......

Website posts bugged chat with boat captain
Jan. 25 - Salvage workers prepare to pump fuel from stricken Costa Concordia as leaked tape allegedly of Captain Francesco Schettino posted on Italian website. Jessica Gray reports......

Turning smartphones into toys
Jan 25 - Harnessing the technology inside smartphones, a new range of app-related toys providing a new way to play are on display at the British toy Fair. Joanna Partridge reports......

Trading at Noon: Apple lifts Nasdaq in cautious market
Jan. 25 - The Dow and S&P 500 fell on concerns over Greek debt talks, stalling a strong rally from last year, but the Nasdaq rose on Apple's forecast-beating results......

Davos: The Year of the Draghi
Jan. 25 - European Central Bank President Mario Draghi has emerged as one of the most significant players at this week's World Economic Forum in Davos. Jamie McGeever reports from Davos......

Apple regains most valuable spot
Jan 25 - Summary of business headlines: Apple is world's most valuable company after shares top $454; Boeing beats, but outlook shaky; Higher fares lift Delta, US Air results. Conway G. Gittens reports......

Davos: Europe holds back recovery
Jan. 25 - The World Economic Forum opens in Davos with hopes rising that the euro zone is edging away from disaster but business leaders still say Europe's woes are still holding back a global recovery. Sonia Legg reports from Davos......

Morning Briefing:Citi mulls job cuts; Facebook halts trading
Jan. 25 - Citigroup says it may make further cuts in its securities and banking unit in 2012, and Facebook will not honor trades of its shares in the secondary markets for a three-day period......

Apple beats Wall St targets
Jan. 25 - The world's most valuable technology company returns to form with quarterly results that blow past Wall Street's expectations, sending its shares up 8 percent into record territory. Matt Cowan reports......

Deloitte CEO says global growth fragile
correspondent Jamie McGeever......

U.S. Morning Call: Apple shines; Obama outlines
Jan. 25 - Apple blew past Wall Street forecasts, while President Obama outlined a broad economic plan, including taxing the rich and drilling for natural gas......

Obama's easy target millionaire tax: Reuters Breakingviews
Breakingviews.....

Japan in first trade deficit in 30 years
Jan. 25 - Japan's first trade deficit in 31 years raises questions over how much longer Tokyo can fund its huge public debt with domestic savings alone. Arnold Gay reports......

Davos Today - Wednesday Jan. 25, 2012
Jan. 25 - The official morning show of the World Economic Forum Annual Meeting in Davos. Insider will speak to Ernst & Young's Jim Turley, Unilever's Paul Polman, WEF founder Klaus Schwab and many more......

Obama: U.S. has "huge stake" in outcome of Arab Spring
Jan. 24 - U.S. President Obama said in his State of the Union address that the U.S. has a "huge stake" in the outcomes of the Arab Spring. Rough Cut (no reporter narration).....

Obama uses State of the Union to call for economic equality
Jan. 24 - U.S. President Obama framed an election-year State of the Union address in starkly populist terms by calling for sweeping tax reforms. Rough Cut (no reporter narration).....

China's rich women want female bodyguards
Jan. 25 - China's wealthy women entrepreneurs turning to female bodyguards for protection. Arnold Gay reports......

Global slowdown hits Ericsson profits
Jan. 25 - The world's number one mobile equipment maker Ericsson has seen its profit halve in the fourth quarter as the global economic slowdown hit demand. Hayley Platt reports......

Market Pulse: UK economy contracted in Q4
Jan. 25 - Britain suffers its biggest drop in growth since Q4 2010, led by a collapse in manufacturing. George Buckley, Deutsche Bank Chief UK Economist tells Insider about the outlook......

Fed watchers see no new stimulus
Jan 24 - Historic changes are expected at the first meeting this year of the Federal Reserve, but Fed watchers at Brown Brothers Harriman and Scotia Economics don't think another round of quantitative easing will be one of them. Conway G. Gittens rep.....

Apple earnings wow Wall Street
Jan 24 - Summary of business headlines: Apple sales surge; Yahoo revenues slip; IMF warns euro zone crisis is escalating; Wall Street drifts mostly lower as Federal Reserve announcement awaited. Bobbi Rebell reports......

Look up to the balcony for State of the Union clues
White House Correspondent Jeff Mason says if you want to know what President Barack Obama is going to say in the State of the Union address, look to the First Lady Michelle and Warren Buffett's secretray......

U.S. Day Ahead: Fed on target for transparency
Jan. 24 - The Fed is expected to announce new targets when it concludes its two-day policy meeting. But Brown Brothers Harriman's Marc Chandler says better communication does not equal better forecasts......

Facebook share suspension sets IPO rumours running
Facebook has suspended trading of its shares on the private secondary market until the end of the week, raising expectations that it will shortly file for its long-awaited initial public offering.<img width='1' height='1' src='http://telegraph.fee.....

Debt crisis: live
The US Federal Reserve has slashed its growth forecast for this year and next and held its key interest rate between 0pc and 0.25pc 'at least' until the end of 2014, as it warns of stubbornly high unemployment.<img width='1' height='1' src='http:/.....

UK heading for first double-dip recession since 1975
Britain is heading for its first double-dip recession in 37 years after the economy slumped in the final quarter of 2011 and officials warned of a new threat to jobs.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/.....

Angela Merkel asks how much would be enough for rescue funds
German Chancellor Angela Merkel questions whether an increase in the eurozone's rescue funds would reassure markets and says Europe has already lost a lot of confidence by failing to deliver on its promises.<img width='1' height='1' src='http://te.....

Kenneth Rogoff warns on interest rates
Ken Rogoff, co-author of the best selling "This time it's different", sounded the alarm on interest rates in Davos today, saying that any rise of more than 100 basis points in long term rates would spell "big trouble for everyone".<img width='1' h.....

It's now up to China to save capitalism
It's official. Britain is sinking back into recession. OK, so technically we are not yet in one. A recession is defined by two successive quarters of economic contraction. We've only had one quarter formally confirmed. But not many would now bet on a.....

What we need now is abanker behind bars
We lack a dramatic focus for public rage such as the bankers' bath-plug or the bankers' duck-house, says Allison Pearson.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c229347/mf.gif' border='0'/><br/>.....

Angela Merkel defiant as IMF leads attack on Germany
Angela Merkel has defied calls for a radical shift in strategy to lift Europe out of crisis but is increasingly isolated as the IMF and global bodies join ranks.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c2.....

Why Iain Duncan Smith is heading for a date with disaster
The idea that universal credit will be ready by 2013 is 'pie in the sky', Whitehall insiders tell Sue Cameron.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c2253b9/mf.gif' border='0'/><br/><br/>.....

Federal Reserve to hold rates longer, cuts growth forecast
America's interest rates will still be at a record low level seven years on from the start of the financial crisis after Fed chairman Ben Bernanke said he's not ready to declare the US recovery has entered a "new, stronger phase."<img width='1' he.....

Oil giants' retreat is mirrored by the market
Oil prices might have been fuelled in recent weeks by tensions over Iran but that did not mean City scribes were feeling particularly optimistic about forthcoming results from the oil and gas majors.<img width='1' height='1' src='http://telegraph......

Guardian pins digital future on citizen journalism
The Guardian is on a "mission" to be able to stand alone as a digital-only publication, and is mixing its stable of traditional journalists with enthusiastic laypeople, one of its most senior executives has claimed.<img width='1' height='1' src='h.....

Davos 2012: Private equity happy to pay more tax but governments must decide, says Rubenstein
Private equity would happily pay more taxes - but it is up to governments to change the rules, says Carlyle Partners co-founder David Rubenstein, one of the industry's leading investors.<img width='1' height='1' src='http://telegraph.feedsportal.c.....

Davos 2012: as it happened, January 25, 2012
German Chancellor Angela Merkel presses the case for "more Europe" as she addresses business leaders in Davos.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c21fcea/mf.gif' border='0'/>.....

Channel 4 set to report deficit for 2012
Channel 4 will report a deficit for 2012, its chief executive David Abraham has warned.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c224edd/mf.gif' border='0'/>.....

Channel 4 set to report funding shortfall
Channel 4 will report a deficit for 2012, its chief executive David Abraham has warned.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c204ee2/mf.gif' border='0'/>.....

Federal Reserve to keep rates frozen until 2014
The Federal Reserve says it is unlikely to raise interest rates until at least late 2014, much later than previously forecast, in order to help the US economy into a stronger recovery.<img width='1' height='1' src='http://telegraph.feedsportal.com.....

Davos 2012: Mandelson attacks Lyons over 'euro flawed and cannot survive' comment
Gerard Lyons, chief economist for Standard Chartered Bank, warned that the euro is "fundamentally flawed and cannot survive" in comments that triggered an extraordinary public rebuttal from Lord Mandelson.<img width='1' height='1' src='http://tele.....

Davos 2012: Alarming growth in cyber-attacks
The inability of companies to prepare for possible cyber-attacks from "incredibly resourceful criminals" is one of the most pressing issues facing global chief executives, according to PwC.<img width='1' height='1' src='http://telegraph.feedsporta.....

Former Lloyds boss Eric Daniels to join StormHarbour
Eric Daniels, who retired as chief executive of Lloyds Banking Group last year, has emerged with a new job at a City advisory firm specialising in restructuring bank debt for companies in need of new financing.<img width='1' height='1' src='http:/.....

Davos 2012: Euro flawed and cannot survive, says Lyons
Gerard Lyons, chief economist for Standard Chartered Bank, has warned that the euro is "fundamentally flawed and cannot survive".<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c219278/mf.gif' border='0'/>.....

Davos 2012: Final salary pensions keep young people out of jobs, says Unilever chief executive Paul Polman
Paul Polman, chief executive of Unilever, has attacked final salary pension schemes - which he claimed were damaging the economy.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c2102ed/mf.gif' border='0'/><.....

Huhne pursues Supreme Court appeal over solar subsidy cut
The solar industry was in limbo last night after the Government defied pleas to accept an Appeal Court ruling that the decision to slash solar subsidies in December was unlawful.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/327.....

Davos 2012 in pictures
Pictures from the first day of the World Economic Forum meeting in Davos.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c20b2a2/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com.....

Fed's projections expected to show rates frozen until 2014
US interest rates will stay at record low levels until at least 2014, according to economists, as Wall Street awaits the publication later today of the Federal Reserve's own forecasts on rates for the first time.<img width='1' height='1' src='http.....