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Friday 10 February 2012

UK Financial News on 2012-02-10

Greek cabinet approves new cuts
Greece's cabinet approves a draft bill committing to austerity reforms required to get new bailout funds, amid warnings of "chaos" if parliament fails to ratify it......

Barclays' profits fall to 5.9bn
Barclays reports a 3% fall in annual profits to 5.9bn, and cuts the bonus pool at its investment banking division by 32%......

Small business loan target missed
The five main UK banks missed their Project Merlin target for lending to smaller firms, but exceeded the overall lending target, BBA figures show......

Downgrade for most Italian banks
The credit ratings agency Standard and Poor's has downgraded its assessment of almost all of Italy's major banks......

Producer prices rise in January
UK producer prices rose by 0.5% in January from December as the cost of alcohol, fuel and clothes rose, official data shows......

Imports increase US trade deficit
Record imports contributed to a 3.7% increase in the US trade deficit in December, official figures show......

Network Rail pay chief to stay
Network Rail dismisses calls for the chairman of its remuneration committee to step down following the controversy over executive bonuses......

'More help needed' for BAE staff
BAE Systems needs to do more to help workers facing redundancy, a new report says......

De Beers annual profits jump 62%
Diamond producer De Beers has announced a surge in annual profits as Chinese and US shoppers snapped-up its gems......

China's exports and imports fall
China's exports and imports fell in January, raising fresh concerns about the impact of a global economic slowdown on its economy......

Shock loss for India's Tata Steel
Tata Steel, the largest producer in India, unexpectedly reports a loss of 6.03bn rupees ($122m; 77m), hit by weak demand......

BA and Virgin escape Nigeria fine
Nigerian authorities have thrown out fines totalling $235m against British Airways and Virgin Atlantic......

German inflation rate at 2.1%
Rising energy prices kept German inflation high at 2.1% in January 2012, according to official figures from Destatis......

Oil price lifts profits at Total
French oil firm Total reports a 7% rise in quarterly profits, driven mainly by higher oil prices......

NYSE Euronext hit by failed deal
Profits at NYSE Euronext have been hit by the collapse of its planned merger with Deutsche Boerse......

'Energy literacy' to be examined
The "energy literacy" of gas and electricity billpayers will be tested during an inquiry by MPs to see if more education is needed from the industry......

Alcatel jumps on profit outlook
Shares in Alcatel Lucent jump 20% after the telecoms equipment maker reports an annual profit of 1bn euros and targets better profit margins......

Sainsbury's relaxes freeze advice
Sainsbury's is removing advice to freeze food "on day of purchase" from its labels and informing customers it can be done up until the use-by date......

Tribe sues beer makers for $500m
South Dakota's Oglala Sioux tribe has sued major beer makers for $500m for fuelling chronic alcohol abuse in one of the poorest communities in the US......

Pensioners miss weather payments
Up to 1.6 million pensioners are failing to claim benefits they are entitled to - including financial help during the cold snap......

Bank's system 'risks house sales'
House sales could fall through under a new mortgage system being used by a high street bank, the Law Society of Scotland warns......

AA sat-nav car insurance policy
The AA is set to launch its first insurance policy using satellite navigation to track driver behaviour......

'Progress' on EU-India free trade
EU and Indian leaders say they have made "substantial progress" towards a free trade agreement at a key Delhi summit......

Bank injects 50bn into economy
The Bank of England agrees to extend its quantitative easing programme by 50bn to give a further boost to the UK economy......

ECB leaves euro rates unchanged
The European Central Bank leaves its benchmark interest rate unchanged at 1.0%, saying there are signs of stabilisation......

US banks in home seizure payouts
Five of the biggest US banks agree to provide $25bn in assistance to homeowners to settle claims over improper foreclosure practices......

Kodak exits digital camera market
Eastman Kodak, a name synonymous with photography, is to stop making digital and video cameras......

Johnston seeks Gers buyout probe
Former Rangers chairman asks the government's insolvency service to clarify "certain financial arrangements" relating to the club's takeover......

Pompey to meet HMRC over tax bill
Portsmouth will meet with HM Revenue and Customs on Friday to discuss their unpaid tax bill, now believed to be 1.9m......

Redknapp trial cost 1.3m so far
HM Revenue & Customs says that rumours it spent 8m on trials into alleged tax dodging, one of which cleared Harry Redknapp, are "nonsense"......

London 2012 'lacking energy plan'
London 2012 organisers still do not have an energy-saving strategy despite a pledge to make it one of the greenest Olympics, a watchdog says......

VIDEO: 'Don't forget tax from bonuses'
Each million paid in bonuses is worth over 600,000 in taxes, says Michael Spencer, head of financial services company ICAP and former fundraiser for the Conservatives. He tells Evan Davis why the British taxpayer should be careful what they wish for .....

AUDIO: What are cold weather payments?
A benefit and tax credit entitlement advisor told Radio 5 live Wake Up To Money how cold weather payments work......

AUDIO: Camra accolade for Welsh pub
A pub in Wales has been awarded the Campaign For Real Ale's National Pub of the Year award......

VIDEO: Barclays profits dip to 5.9bn
Barclays bank has announced a slight drop in its annual pre-tax profits - but still banked nearly 6 billion last year......

VIDEO: Athens clashes over spending cuts
There have been clashes in Greece between riot police and protesters venting their fury at government austerity measures......

AUDIO: Economics explained: Plan A vs Plan B
Today presenter Evan Davis examines British macro economics......

VIDEO: My Bottom Line: Richard Farleigh
Richard Farleigh, investor and entrepreneur, says do not underestimate the importance of marketing......

AUDIO: Is the future financial?
Stuart Fraser from the City of London Corporation and the TUC's Brendan Barber debate the proper balance between the UK's manufacturing and finance sectors......

VIDEO: How does quantitative easing work?
How the Bank of England pumps money into the economy.....

RFU and O2 ring up new sponsorship deal
Why RFU rugby bosses and O2 rang up new deal.....

Viewpoint: The changing nature of work
Slogging 24/7 - is this the future of work?.....

Economics explained: Plan A vs Plan B
Evan Davis on the arguments over austerity and spending.....

CEO pay not linked to performance
Why chief executives are paid so much.....

Brazil oil giant Petrobras gets new chief
Meet the woman running Brazil's oil giant.....

Small firms: Your questions answered
Your questions answered.....

The Week Ahead: GM earnings, Obama budget, retail sales
Feb. 10 - How much of a loss investors expect from GM's Europe unit, what President Obama's budget may contain, and a preview of retail sales in our U.S. Week Ahead......

Greek anger causes Wall St. jitters
Feb 10 - Summary of Business Headlines: Wall Street dives as Greece talks stall; U.S. trade deficit with China soars to record, Americans less optimistic, Znyga and Hasbro team up for toys. Carmen Roberts reports......

Alcatel-Lucent shares jump
Feb. 10 - The Franco-American telecom equipment maker has reported profit for the first time since its merger and announced an intellectual property deal, estimated to be worth 1 billion euros. Joanne Nicholson reports.....

Trading at Noon: Wall St. drops 1% as Greek talks stall
Feb. 10 - U.S. stocks dropped on the most recent flare-up in Greek negotiations for a financial bailout package......

Breakingviews: Thermospat
Feb. 10 - Breakingviews columnists discuss a patent dispute between Honeywell and Nest Labs over the iPod of thermostats......

Europe week ahead
Feb. 10 - All eyes are on Athens as Greek lawmakers prepare for a Sunday vote on the country's debt deal and euro zone leaders warn that planned austerity measures don't go far enough......

Morning Briefing: Violence in Greece, Linkedin rises
Feb. 10 - Violence erupts in Greece over the latest austerity plan, and shares of LinkedIn are moving higher after the networking service's outlook for the current quarter surpassed expectations......

A whip-round for Greece....(sorry, quotes not cash)
Feb. 10 - Soundbites from prominent European figures on whether Greece can stay in the euro and avoid a messy default......

EU demands more from Greece
Feb. 10 - Greece's deal on economic reforms designed to help it secure a second EU bailout has sparked protests on the streets of Athens, but euro zone finance ministers are demanding further action before the aid is released. Joanne Nicholson report.....

U.S. Morning Call: Stock futures fall, focus on data
/University of Michigan consumer sentiment survey......

Economy 2012: Small businesses still cautious, banker says
Feb. 10 - Cullen/Frost Bankers CEO says small businesses are still cautious and that, while there may not be an immediate spike in jobs growth, increasing efficiency will be a big benefit in the long run......

Investment bank hurts Barclays, cuts bonuses
Feb. 10 - British bank Barclays ended 2011 with its worst quarter for three years as a sharp fall at its investment banking arm dragged down its annual profit. The bank cut bonuses across the group but CEO Bob Diamond wouldn't reveal what he received.....

Portugal sees boost in textiles
Feb. 10 - Portugal's textile industry has been getting itself back on track despite years of competition from cheaper Asian countries. Industry players say innovation has helped turn the tide. Joel Flynn reports......

IEA cuts global oil demand forecast
Feb. 10 - The International Energy Agency lowers oil demand growth forecast to 800,000 barrels a day after cutting its estimate of global economic growth......

Breakingviews: Results stoke Barclays bonus dispute
Feb. 10 - Barclays' disappointing results undermine the case for defiance on bonuses; Glexstrata deal lacks gatecrashers; and, Draghi smacks down Deutsche Bank head......

Asia week ahead: Japan poised to stem the yen
Feb. 10 - Bank of Japan meets as bad Q4 economic news expected, while in China a possible spike in loans to cushion slower growth, and a watch on the yuan as VP Xi Jinping visits the U.S......

Reuters Today: EU snubs Greece reform plan
Feb. 10 - European finance ministers reject Greece's attempt to reform the economy and get the bailout funds required to avoid a default......

Fools rush in but China's Xi Jinping won't
Feb. 9 - He's tipped to lead but China expert Fraser Howie says don't expect bold reforms to boost domestic consumption, close the wealth gap or anything else - at least not straight away......

FACTBOX: China's ailing trade
Feb. 10 - China's slump in export and import growth for January highlights weaker global and domestic demand, while a shrinking trade surplus points to an economic rebalancing......

Jack & Suzy Welch: IPO hangover may change Facebook forever
Columnists Jack and Suzy Welch say Facebook runs the risk of losing its winning culture after a multi-billion dollar IPO......

Barclays results in focus
Feb. 10 - Barclays CEO Bob Diamond refuses to comment on his bonus as the bank warns it may miss its profit goal......

Looking rich on the runway
Feb. 9 - Mercedes-Benz Fashion Week in New York is officially underway, and designers are expected to show off rich luxurious looks now that the US economy is showing clear signs of improvement. Bobbi Rebell reports......

Market Pulse: Greece rebuff sends stocks, euro lower
Feb. 10 - Final approval for a long-awaited Greek debt deal remains elusive, keeping alive the threat of a messy sovereign default......

$25 billion justice for homeowners?
Feb 09 - The U.S. government reached a $25 billion settlement with the country's biggest banks over shady practices used to force Americans out of their homes through foreclosure. Conway G. Gittens reports......

Stocks creep high on Greece deal
Feb. 09 - Summary of business headlines: Greek austerity deal fails to excite Wall Street; Barack Obama and Italy's Mario Monti meet at White House; Banks agree to landmark $25 billion settlement. Conway G. Gittens reports......

Debt crisis: live
The Greek Government heads for a reshuffle as five cabinet members resign and cast doubt over the implementation of tough austerity measures required to secure a 130bn bailout package, while PM Lucas Papademos warns default would be "uncontrolled cha.....

Citizen Bob misses his opportunity to accrue some bonus points
Well, that was predictable. Bob Diamond ducked questions on his own bonus on Friday on the grounds that, if he'd 'fessed up to what he'd trousered, that's all anybody would talk about.<img width='1' height='1' src='http://telegraph.feedsportal.com.....

UK banks expected to miss small business lending target
Britain's largest banks are likely to have fallen just short of their small business lending target agreed with the Government last year, according to figures from the British Bankers' Association.<img width='1' height='1' src='http://telegraph.fe.....

Barclays attacked over pay despite cutting bonuses
Leading shareholder groups have attacked Barclays over the level of bonuses paid by the bank to staff in its investment banking arm.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c8fd439/mf.gif' border='0'/>.....

Barclays criticised over accounting practices
Barclays' bonus pool is not the only part of its results that has riled investors: the bank's accounting practices have caused controversy too.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c8fd43a/mf.gif' bord.....

Greek prime minister warns of 'uncontrolled chaos' if country defaults
Greece's plans to avert bankruptcy were in chaos on Friday night as politicians, police and protesters formed a powerful and violent opposition to the internationally-imposed austerity measures.<img width='1' height='1' src='http://telegraph.feeds.....

Investors press Glencore to pay more for Xstrata
A leading investor has added its voice to the chorus calling for management behind the planned 54bn merger of miner Xstrata and commodity trader Glencore to revise the terms of the deal.<img width='1' height='1' src='http://telegraph.feedsportal.c.....

Cable & Wireless Communications feels strain from rivals in Panama
Cove Energy gave oil and gas punters something to smile about on an otherwise lacklustre day as the explorer put itself up for sale, prompting speculation as to who could snap up the Aim-listed business.<img width='1' height='1' src='http://telegr.....

EU agrees to overhaul regulation of derivatives
European politicians have agreed on plans to overhaul the $700 trillion (444 trillion) derivatives market.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c8f08bb/mf.gif' border='0'/>.....

Weir seeks to snap up Australian mining firm
Weir Group continued its shopping spree on Friday as the maker of pumps and valves made a 200m tilt at an Australian mining equipment business.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c8f0511/mf.gif' bord.....

Rating agencies 'must be independent'
Credit rating agencies must be left free from political interference in order to make "responsible and sensible decisions", experts have warned.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c8f0515/mf.gif' bor.....

Vernalis in rude health on cough and cold deal
Shares in Vernalis shot up after the drug development company signed a pact with Tris Pharma to develop long-lasting cough and cold medicines.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c8f024e/mf.gif' borde.....

Game Group's banks hire PwC to help it play on
Lenders to struggling video games retailer Game Group have hired PwC to look at the long-term strategy of the business.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c8f024f/mf.gif' border='0'/><br/>&l.....

BP wins right to exclude prior accidents from Gulf of Mexico oil spill case
BP has won a legal victory preventing some of the oil giant's previous accidents being used as evidence in the trial to assign blame for the Gulf of Mexico oil spill.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/.....

Bank of England's 50bn QE puts Britain in 'better position than Germany'
Ratings agency Fitch gave its seal of approval to the Bank of England's decision to inject fresh stimulus into the economy, saying it put the UK in a better budgetary position than both France and Germany.<img width='1' height='1' src='http://tele.....

Video: 2012 Business Bullet, Episode 17
The monthly roundup of London 2012 Olympic business news. Find out about all of the latest finance and business news courtesy of Cisco and The Daily Telegraph.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c8eb.....

Spain introduces sweeping labour reforms to fight joblessness
Spain's new conservative government has passed a range of sweeping labour reforms it hopes will "mark a before and after" in a country that has the highest jobless rate in the developed world.<img width='1' height='1' src='http://telegraph.feedspo.....

Warren Buffett: gold has no value
"Sage of Omaha" has dismissed gold as a "valueless asset".<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c8e1f47/mf.gif' border='0'/>.....

Flybe escapes hammering as update lays bare pressures in the UK market
Flybe's third quarter update laid bare the pressures in the UK market on Friday, as the company received a short respite from the hammering it has received since its flotation.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726.....

Violence erupts as Greek unions begin 48 hour strike - in pictures
Violence has broken out in Athens as protesters took to the streets to demonstrate against the harsh new austerity measures imposed on the country. Here are some of the latest images from the protests.<img width='1' height='1' src='http://telegrap.....

FTSE 100: Miners lead markets lower amid Greek uncertainty
Weaker miners led the FTSE 100 slightly into the red on Friday morning, amid continued uncertainty over Greece's austerity plans and weak trade data from China<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c8bc.....

Business Bullet: Barclays, China, Greece, UK production costs
Business Bullet: China's figures are bad news for Western exporters<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c8cb7f3/mf.gif' border='0'/>.....

The 64,000 question - should we beware of Barclays' 'big round number'?
Bank chief Bob Diamond admits he needs to "win back trust" from public, as questions remain over whether he will take bonus.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c8c6f38/mf.gif' border='0'/><br/&.....

Panama troubles weigh on Cable & Wireless Communications
Cable & Wireless Communications (CWC) shares sank as the telecommunications business warned that stiff competition and weak demand had hit its business in Panama.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/.....

10 travel insurance pitfalls
The exclusions waiting to catch you out in the small print of travel insurance policies.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1c8e16eb/mf.gif' border='0'/>.....