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Friday 27 January 2012

UK Financial News on 2012-01-27

Outrage at RBS boss's bonus deal
A 963,000 bonus in shares awarded to Royal Bank of Scotland boss Stephen Hester is strongly criticised by politicians and unions......

US economic growth rate picks up
The pace of US economic growth quickened to a 2.8% annualised rate in the three months to December, the Commerce Department says......

Greece debt talks 'close to deal'
Greece could reach a deal with its creditors over the weekend, according to the EU's Economic Commissioner, Olli Rehn......

Tackling inequality 'a priority'
Growing inequality should now be the priority for leaders after the economic crisis, senior figures at the World Economic Forum say......

VIDEO: Tupperware boss gives Davos advice
Davos veteran Rick Goings, boss of Tupperware, offers "dos and don'ts" for first-time visitors to the World Economic Forum......

Davos 2012: Who's afraid of China?
Davos comes to terms with a new global power.....

Davos 2012: Setting the gloom level to 11
There's a gloomy mood at this year's meeting of the WEF.....

Osborne unveils UK financial bill
The Chancellor George Osborne has revealed details about the new Financial Services Bill that will overhaul regulation of the sector......

Fitch downgrades Italy and Spain
Five eurozone economies, including Italy and Spain, are downgraded by rating agency Fitch, citing financial weakness during the debt crisis......

Spain jobless passes five million
Spain's unemployment figure rose above the five million mark in the last quarter of 2011, official figures show......

Carmaker Ford's profits increase
US carmaker Ford has reported a surge in profits in 2011, fuelled by a one-off payment and strong sales in its home country......

Hundreds of jobs to go at Serco
Outsourcing group Serco announces it is to cut 500 jobs in the UK, mostly at the company's head office in Hampshire......

Top Euro MP quits in piracy row
A European Parliament rapporteur has stood down in protest as a controversial anti-piracy agreement is signed by several countries......

Web economy 'to double by 2016'
With half the world online by 2016, the web economy in the G20 countries is set to nearly double in size to $4.2tn (2.7tn), research suggests......

Mortgage rates 'to be volatile'
Brokers are telling new borrowers to expect mortgage rates to see-saw in the coming months, owing to economic uncertainty......

Toy maker Hornby warns on profits
Model train and Scalextric maker Hornby issues a profits warning after sales of its train and slot-car racing sets were hit in the run up to Christmas......

BP ordered to share spill damages
BP must cover some but not all of oil rig owner Transocean's liabilities for the 2010 oil spill in the Gulf of Mexico, a US judge rules......

Steel worker job losses confirmed
Up to 350 workers are to lose their jobs at a Kent steel firm which has gone into administration, it is confirmed......

Samsung in year end sales boost
South Korea's Samsung Electronics announces a 17% rise in profits in the last three months of 2011, as smartphone sales boosted earnings......

Marston's sees 'strong' trading
The pubs chain and brewer Marston's reports "strong" trading over the Christmas period, with higher sales of food and drink......

Lenders face tougher regulation
Payday lenders and other providers of short-term credit will face much tougher regulation when a new watchdog starts work......

Italian cruise firm offers payout
The Italian firm that owns the stricken cruise ship Costa Concordia reaches an agreement on compensation with several Italian consumer groups......

Tax deadline put back by strike
No fines will be handed out to anyone who submits their self-assessment tax returns online in the first two days of February......

Retail sales 'falling in January'
Retail sales fell in January as shoppers reined in their spending at the start of the year, the CBI says......

US durable goods orders rise 3%
Orders for durable goods rose 3% in the US in December, according to official figures from the Commerce Department......

Intel buys RealNetworks patents
Intel is paying $120m (76m) for RealNetwork's video patents. Experts say it undermines claims that a "patent bubble" has burst......

Starbucks sees 10% rise in profit
US coffee chain Starbucks posts a 10% rise in net profits for the three months to 1 January 2012, benefiting from new stores and new products......

AT&T posts $6.7bn quarterly loss
US phone network AT&T reports a $6.7bn (4.3bn) net loss for the three months to the end of December 2011......

Redknapp: 'I don't fiddle taxes'
Harry Redknapp told police he has paid "fortunes in income tax" and did not "fiddle anybody", a court hears......

Olympic Village site handed over
London 2012 organisers take control of the Olympic Village site in a ceremony to mark six months until the Games begin......

Expert warns of ground move risks
Relocating to a new stadium would not necessarily guarantee Lincoln City's long-term future, warns a football finance expert......

VIDEO: Soros warns of 'lost decade' for EU
Speaking from Davos, financier George Soros has warned that Europe is likely to face a "lost decade" and is concerned that the EU may be destroyed by austerity measures......

VIDEO: Ellen MacArthur on sustainable economy
Dame Ellen MacArthur is in Davos to promote a new sustainable approach for the economy......

VIDEO: Why RBS boss deserves bonus
Dr Ruth Bender, of the Cranfield School of Management, explains why she thinks it is fair that Stephen Hester gets his bonus worth over 900,000.....

VIDEO: Lagarde: Need for European growth
IMF chief Christine Lagarde has again stressed the need for European governments to prioritise growth as talks on the region's debt crisis continue......

VIDEO: Samsung announces profit rise
South Korea's Samsung Electronics has announced a 17% rise in profits in the last three months of 2011, as smartphone sales boosted earnings......

VIDEO: 'We should rebrand tax as charity'
Many are struggling to pay their bills but the philosopher Alain De Botton reckons the British should be encouraged to think this is a good idea, by rebranding it as charity......

VIDEO: Could credit unions replace banks?
Credit unions have been around since the nineteenth century but in the past 10 years the number of people using one has risen by more than 200 per cent......

VIDEO: Rehn: Greece deal by Monday
European Commissioner for Monetary Affairs Olli Rehn says Greece is within touching distance of a deal with private banks to write down its debt......

Davos 2012: Where to invest this year?
'Gambling' with some of the world's top investors.....

What has Stephen Hester achieved?
What has RBS boss Stephen Hester achieved?.....

Threat landscape is 'constantly evolving'
Keeping systems safe from attack.....

Is Pakistan's economy facing potential collapse?
Is Pakistan's economy in danger of potential collapse?.....

Inflation-beating investment options
What investments can help you beat inflation?.....

Financial risks: Danger or opportunity?
Does a financial crisis pose danger or opportunity?.....

How Peacocks ran up 750m debts
How Peacocks collapsed under a mountain of debt.....

U.S. Week Ahead: Jobs growth trend could continue
Economics Editor Stella Dawson says although we may see a slight gain in non-farm payrolls on Friday, the unemployment rate may also tick up......

Geithner: Challenge ahead for recovery
Jan 27 - 2New data show the U.S. economy grew at its fastest pace in 1-1/2 years at the end of 2011, but Treasury Secretary Timothy Geithner says the recovery is still at risk. Conway G. Gittens reports......

Draghi: ECB cash averts credit crunch
Jan 27 - The European Central Bank's loans to banks have averted a major credit crunch, ECB President Mario Draghi has told the World Economic Forum in Davos. Sonia Legg reports from Davos......

Ford earnings disappoint investors
JAN 27 - Summary of business headlines: U.S. earnings season continues; Ford profit weaker than expected; P&G profit plunges 49%; Honeywell tops earnings estimates. Carmen Roberts reports......

Davos 2012: OECD Secretary General Gurria
Jan. 27 - OECD Secretary General Angel Gurria speaks to Insider at Davos 2012.....

Davos 2012: Bank of Israel Governor Fischer
Jan. 27 - Bank of Israel Governor, Stanley Fischer, speaks to Insider at Davos 2012.....

Trading at Noon: Wall St. lower at open after GDP data
Jan. 27 - U.S. stocks are down on weak economic data, earnings from Ford and continued caution over Europe's debt crisis......

Davos 2012: Shell CEO Voser
Royal Dutch Shell CEO Peter Voser speaks to Insider at Davos 2012......

Greek debt deal seen as "very close"
Jan. 27 - A deal between Greece and its private creditors is seen as "very close" says EU economic and monetary affairs chief Olli Rehn, as the EU and IMF push Athens to implement more reforms to get its second bailout package. Joanna Partridge repor.....

Davos 2012: Finnish Prime Minister Katainen
Finland's Prime Minister Jyrki Tapani Katainen speaks to Insider at Davos 2012......

Davos 2012: EU Commissioner Ollie Rehn
EU Commissioner Ollie Rehn speaks to Insider at Davos 2012......

Davos 2012: South African Finance Minister Gordhan
South African Finance Minister, Pravin Gordhan, speaks to Insider at Davos 2012.....

Davos 2012: Nigerian Central Bank Governor Sanusi
Insider speaks to Sanusi Lamido Sanusi, Nigeria's central bank governor......

Companies will put cash to work, up dividends: O'Shaughnessy
Jan. 27 - O'Shaughnessy Asset Managment Chairman and CEO Jim O'Shaughnessy says companies with significant stockpiles of cash will likely raise dividends or start paying one out for the first time......

Counting cost of Costa Concordia disaster
Jan. 27 - An agreement made with several Italian consumer groups to pay passengers on the capsized cruise ship Costa Concordia about 11 thousand euros each is facing criticism in some quarters as insufficient. Matt Cowan reports......

Geithner favours bigger Europe firewall
Jan. 27 - U.S. Treasury Secretary Timothy Geithner has pressed Europe to boost its bailout funds, saying the euro zone debt crisis and oil prices were the two main factors influencing the pace of the US economic upturn. Sonia Legg reports from Davos......

Morning Briefing: U.S. GDP disappoints; Chevron profits fall
Jan. 27 - U.S. GDP for the fourth quarter was slightly below Wall Street expectations, and Chevron reported lower earnings due to rising spending on oil and gas projects and losses at its refinery business......

Spain's jobless rate soars
Jan. 27 - Spain ended 2011 with almost a quarter of its working population unemployed, according to new figures. Joanna Partridge reports.....

Reuters Breakingviews: Commentary on Today's News
Breakingviews at the World Economic Forum in Davos looks at what the ECB can do to help Greece......

Major quake may hit Tokyo sooner-than-expected
Jan 27 - Tokyo University study shows 70 percent probability of Tokyo earthquake in the next four years versus government estimate of 30 years. Arnold Gay reports......

Can foreign stars reboot China soccer?
Will superstars like former Chelsea striker Nicolas Anelka give China's corrupted game a free kick at redemption? Critics say no......

LIVE: Davos 2012 Friday
Jan. 27 - Live interviews and analysis from Davos 2012 including Finland's Prime Minister, the head of the International Labour Organization and South Africa's Minister of Finance, Pravin Gordhan......

U.S. Morning Call: Eastman Chemical expands, BP battles on
Jan. 27 - Eastman Chemical is set to buy specialty chemical maker Solutia for about $3.38 billion in cash and stock, and BP loses its attempt to shift over $15 billion in oil spill costs onto Transocean......

Zoellick doesn't see global recession
Jan. 27 - World Bank President Robert Zoellick says he doesn't believe the global economy will fall into recession but says the euro zone, especially Italy and Spain, will be the most critical issues of 2012. (Rough Cut - No Reporter Narration).....

FA Cup: Liverpool face bitter rivals Man Utd
Jan. 27 - The FA Cup has thrown up a plum tie between Liverpool and Manchester United, one of the most significant sporting rivalries in football. A look at the odds for this and other key fourth round ties......

Greek debt deal hit by eurozone ratings downgrades
Hopes of a Greek debt deal were undermined on Friday night after Fitch downgraded the ratings of six eurozone countries, including Italy and Spain.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c32a445/mf.gif' .....

Debt crisis: as it happened - January 27, 2011
Fitch has cut the credit ratings of five eurozone countries including Spain and Italy, but held Ireland's rating unchanged, as the outlook worsens for the region's indebted nations.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/.....

Banks are key to our recovery and success
There are other more general, but still crucial, issues that politicians are missing in their continuing desire to attack RBS chief executive Stephen Hester and his banking counterparts.<img width='1' height='1' src='http://telegraph.feedsportal.c.....

George Osborne: Europe must show colour of its money to get extra bail-out
Europe needs to "show the colour" of its money before Britain gives more cash to bail out countries, George Osborne says.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c2f9887/mf.gif' border='0'/><br/>.....

Europe casts shadow over Ford's American engine
Ford underlined the headache Europe's debt crisis is giving the car industry after higher losses in the region dented the company's latest profits.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c329e6a/mf.gif' .....

Debt crisis: live
Fitch has cut the credit ratings of five eurozone countries including Spain and Italy, but held Ireland's rating unchanged, as the outlook worsens for the region's indebted nations.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/.....

Facebook prepares to file for $100bn IPO next week
Facebook is reportedly preparing to file next week for a flotation that could value the world's largest social network site at $75bn to $100bn.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c326600/mf.gif' bord.....

Osborne gets power over Bank of England in a crisis
The Chancellor will have the power to force the Bank of England to pump cash into failing lenders in a future financial crisis under radical new laws published on Friday.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568.....

US fourth-quarter growth of 2.8pc disappoints
The US economy grew less than forecast in the final quarter of last year, according to new figures that economists say signal the first three months of this year are likely to be weaker.<img width='1' height='1' src='http://telegraph.feedsportal.c.....

Airbus finds 'quick fix' for superjumbo wing cracks
Airbus sought to play down concerns over its A380 superjumbos after claiming to have found a simple solution to repair cracks in the aircraft's wings.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c2ecf2d/mf.gi.....

LSE earnings boosted by Italian banks
A shortage of liquidity in Italy's banking system boosted the London Stock Exchange during the last three months of 2011.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c320af1/mf.gif' border='0'/><br/>.....

Fitch cuts ratings of five eurozone countries
Fitch downgraded the credit ratings of Belgium, Cyprus, Italy, Slovenia and Spain, indicating there is more than a 50pc chance of further ratings cuts in the next two years.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/.....

James Murdoch quits GlaxoSmithKline board
James Murdoch, the News Corporation executive embroiled in the News of the World phone-hacking scandal, is quitting the board of drug-maker GlaxoSmithKline.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c31f60a.....

Procter & Gamble cuts profit forecast on strong dollar
Procter & Gamble cut its profit forecast for this year, as the maker of Gillette razors became the biggest US company so far to pin the blame for a weakening performance on the strengthening US dollar.<img width='1' height='1' src='http://tele.....

Hotel investors check out as large-caps slide
Traders headed for the exit of InterContinental Hotels (IHG) after UBS turned bearish on the business, whose chains include Holiday Inn and Crowne Plaza.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c31f2ab/mf.....

FSA fines two more over Greenlight insider trading
Two more individuals connected to US hedge fund Greenlight Capital have been fined over a multi-million pound insider-dealing case.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c31f2b4/mf.gif' border='0'/>&.....

ITV ordered to give financial assistance to Box Clever pension scheme
ITV has been ordered to provide financial assistance to the Box Clever pension scheme, which has a deficit of 62m.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c31ceea/mf.gif' border='0'/>.....

FTSE 100: Investors exit hotel group as blue-chips retreat
Intercontinental Hotels was amongst the sharpest fallers on Friday as the benchmark index paused for breath after reaching a six-month high on Thursday.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c2e3004/mf......

Davos 2012: Google's Schmidt defends company against 'piracy' accusation
Google has defended itself against accusations of "piracy" by Rupert Murdoch, claiming that it would be impossible for the company to police the internet itself without resorting to censorship.<img width='1' height='1' src='http://telegraph.feedsp.....

Davos 2012: as it happened, January 27, 2012
Europe needs to "show the colour of their money" before Britain will stump up more cash to bail out its struggling countries, George Osborne has said.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c31fa2b/mf.gi.....

Davos 2012: live
Europe needs to "show the colour of their money" before Britain will stump up more cash to bail out its struggling countries, George Osborne has said.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c2d30e2/mf.gi.....

Davos 2012: Greece close to crucial debt deal, says Rehn
Greece is "very close" to agreeing a debt deal with private sector investors as the region faces a crucial three days, the European Commissioner for economic and monetary affairs said.<img width='1' height='1' src='http://telegraph.feedsportal.com.....

Consumers to get new financial regulator
The Finance Bill has sounded the death knell for the Financial Services Authority.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c30fa84/mf.gif' border='0'/>.....

Has the outgoing Financial Services Authority scored one last own goal?
The Finance Bill plans to scrap the Financial Services Authority.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c30fa85/mf.gif' border='0'/>.....

Lloyds Bank pulls out of charity credit card market
The taxpayer-backed bank says that offering cards that donate to good causes is "no longer cost-effective".<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c3055d4/mf.gif' border='0'/><br/><br/><.....