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Thursday 22 March 2012

UK Financial News on 2012-03-22

Row over tax 'raid' on pensioners
The government defend plans in the Budget to change tax allowances for the elderly, amid claims they amount to a raid on pensioners' incomes......

Higher rate tax 'for 5m by 2014'
More and more people on "relatively modest salaries" are being dragged into becoming higher-rate taxpayers, Budget analysis suggests......

Leaked audit detailed A4e 'fraud'
BBC Newsnight has evidence that welfare-to-work firm A4e knew of widespread potential fraud and systemic failures by management to control it......

Nike has higher profits and sales
Sportswear group Nike says its profits have risen as demand for its shoes outstripped rising costs......

Sharp decline in UK retail sales
UK retail sales volumes fell by 0.8% in February compared with the previous month, official figures show, a sharper decline than expected......

Glaxo invests 500m in UK sites
UK drugmaker GlaxoSmithKline says it will invest 500m in manufacturing in the nation, including building a new factory in Ulverston, Cumbria......

Ireland falls back into recession
The Republic of Ireland fell back into recession in the last three months of 2011, official figures show......

Fedex warns over global economy
Fedex shares fall sharply after the firm warns that the global economy is not recovering as strongly as it expected......

Hermes bags record 2011 profits
French accessories maker Hermes reports a record rise in profits, the latest luxury goods firm to be doing well despite the global economic gloom......

Debt firms face renewed warning
Debt management companies have been given more details on how they must operate amid rising complaints about the sector......

Worst of crisis over, says Draghi
The President of the European Central Bank, Mario Draghi, says the worst of the eurozone crisis is over......

McDonald's chief is to step down
McDonald's chief executive Jim Skinner is to retire in June, when chief operating officer Don Thompson will take over......

Randgold shares plunge after coup
Shares in Randgold Resources plunge 13% after a coup in Mali where the company has three gold mines......

Profit up at B&Q owner Kingfisher
B&Q owner Kingfisher has reported a 19% rise in annual profit, but sales in the UK and Irish Republic fell last year......

Next says outlook still cautious
Next reports another year of record profits but says it is cautious about this year as consumers continue to be squeezed......

Cadbury owner is renamed Mondelez
US giant Kraft Foods, owner of UK chocolate maker Cadbury, decides to name its new global snacks business Mondelez......

Game sales surpassed video in UK
Computer game sales overtook those of videos for the first time last year, an industry report suggests......

New stamp duty plans are outlined
Properties sold for more than 2m will be subject to a new 7% stamp duty charge, Chancellor George Osborne has confirmed......

Child benefit cliff-edge tackled
Government plans to withdraw child benefit from parents who earn higher levels of income have been altered......

Property sales rise in February
The number of homes sold in the UK rose slightly in February, HM Revenue & Customs said......

Japan in surprise trade surplus
Japan posted a surprise trade surplus for February, after a record high deficit the previous month, as external demand picks up......

China manufacturing activity dips
China's manufacturing activity continues to slow, raising fears the global slowdown is harming its economy......

China in Australia currency deal
China and Australia sign a deal to promote direct exchange of their currencies in a bid to promote bilateral trade and investment......

Shell in shale gas pact in China
Royal Dutch Shell signs its first-ever production sharing contract for shale gas in China with China National Petroleum Corporation......

Jaguar agrees China joint venture
Jaguar Land Rover and Chery Automobile agree a joint venture that should pave the way for production of Jaguar and Land Rover models in China......

Sainsbury's sees strong year end
Supermarket group Sainsbury's announces a rise in annual sales, boosted by a strong performance in the fourth quarter......

Risks that Games budget may rise
Preparations for the 2014 Commonwealth Games in Glasgow are on budget but there are risks that more cash may be needed, a watchdog says......

Team GB 2012 Olympic kit revealed
Stella McCartney's design for Team GB's London 2012 kit puts athletes in blue-based clothing, with a motif inspired by the union flag, and vivid red shoes......

VIDEO: Scale of pension change "overblown"
Paul Johnson, Director of the Institute for Fiscal Studies spoke to the BBC about the effects of Chancellor George Osborne's Budget......

AUDIO: GSK chief: UK competitiveness has improved
The chief executive of GlaxoSmithKline, Sir Andrew Witty, explains its decision to build its first new factory in the UK for almost 40 years......

VIDEO: Will Brits always fork out for cake?
The BBC's John Maguire goes behind-the-scenes at a cake-makers in Bristol, which says celebration cakes have retained their popularity, despite a squeeze on household budgets......

VIDEO: Budget headlines in 4 minutes
Huw Edwards highlights the headline announcements of George Osborne's 2012 Budget with changes to tax rates and spending plans......

AUDIO: Tax breaks for creatives a 'growth measure'
Jas Purewal, a lawyer specialising in interactive entertainment, talks about how the film and gaming industries in Britain got a boost from yesterday's Budget......

VIDEO: Game Group to file for administration
Struggling video games retailer Game Group has said it intends to file for administration......

VIDEO: Ed Balls on the Budget
The shadow chancellor of the Exchequer, Ed Balls says the government has "gambled" on the 2012 Budget.....

VIDEO: Portugal braces for general strike
Portugal is braced for a general strike against austerity measures brought in by the government......

Budget calculator 2012
How will the chancellor's Budget affect you?.....

Budget's impact on smaller firms
What the Budget did - and did not - do for small firms.....

Farewell, 50p tax rate
Why the 50p tax rate has not worked.....

World economy: 'No need for gloom'
'Don't worry, it's a local phenomenon'.....

Portugal's young eye life abroad
Portugal's young look abroad for work.....

Budget 2012: What's in it for you?
Big changes to the tax system dominate the chancellor's Budget.....

India seeks affordable medicines
India says medicine should be affordable.....

U.S. Day Ahead: New home sales should rise
Mar. 22- Economists predict improvement for February new home sales while analysts expect profit to rise at Darden Restaurants......

Europe puts FedEx in slower lane
March 22 - Package shipping is not expected to deliver as much of a bounce this year as earlier expected, FedEx warned, saying Europe will put a dent in global economic growth. Conway G. Gittens reports......

Trading at Noon: China growth worries weigh on Wall Street
Mar 22. - Wall Street fell for a third straight day after continued contraction in manufacturing in China and the euro zone fueled worries......

Breakingviews: Bond market recidivism
March 22 - Rob Cox and Breakingviews columnists discuss the return of bad habits by bond investors......

EMEA Day Ahead: Friday
Mar. 22 - Euro zone data eyed for growth clues after PMI downside shock......

Unmasking Goldman Sachs in Japan
March 22 - Former Goldman Sachs employees in Japan have formed an in-house union to fight what they call "intimidation and harassment" of staff at the investment bank. Sonia Legg reports......

Aviation leaders trade war warning
March 22 - India has formally joined China in asking its airlines to boycott the European Union's carbon scheme, stoking a diplomatic row over the issue. Ciara Sutton reports......

Microbreweries put fizz into flat beer trade
Mar. 22 - The UK's 'craft beer' sector is flourishing, winning drinkers over with stronger pints and cult appeal. Amy Gardner reports......

Porsche hunts luxury market in Africa
March 22 - International luxury brands are targeting the wealthy in sub-Saharan African as they look for new markets, and German car maker Porsche has opened a dealership in Nigeria. Joanna Partridge reports.....

3XSQ: Goldman hunts for Muppets, iPhone details
Mar. 22 - Goldman Sachs will begin scouring through e-mails to look for the word "Muppets", and an iPhone with a bigger screen may be heading your way soon......

Portuguese workers strike over austerity
MarCH 22 - Portuguese strikers paralyse most public transport in protest at austerity measures and labour reforms imposed as a condition of a 78-billion-euro (65 billion pounds) EU-IMF bailout. Nick Rowlands reports......

Boards must @connect with #Twitter
& Klout 50 Most Influential Execs on the Web" member......

Lack of growth and persistent debt risk UK Triple-A: Fitch
Mar. 22 - Fitch's Tony Stringer tells Insider there was nothing the Chancellor George Osborne could have done in this week's budget to lift the UK's negative outlook......

Breakingviews: Royal Mail pension deal is a sleight of hand.
Breakingviews......

China's factory slowdown deepens
March 22 - China's manufacturing activity in 5th successive drop, with the contraction deepening and inflation risks lingering. Arnold Gay reports......

Reuters Today: China PMI fall stokes "hard landing" fears
Mar. 22 - Chinese manufacturing activity shrinks again in March, fuelling concern of a "hard landing" and slower global growth. Strikes hit the euro zone, and Goldman gets "muppet" phobia......

China's soaring bank profits to cool in 2012: analyst
Mar. 22 - China's big four banks have had twice the profitability of their US peers. But that could change in 2012, says Michael Werner at Sanford C. Bernstein......

Glass half full in Asias boardrooms
Mar. 22 - Dear investors, the clouds may finally be clearing. Asias top companies tell us theyre more bullish on their business outlook. Click here to find out why......

Milking the market - Fonterra's big new venture in China
Mar. 22 - The worlds biggest milk exporter Fonterra was embroiled in Chinas 2008 tainted milk crisis. But the company is starting afresh on the mainland with thousands of cows shipped from New Zealand......

It's a Wonderful Fed: Bernanke mixes pop culture with policy
Fed team Mark Felsenthal and Pedro da Costa deconstruct Fed Chairman Ben Bernanke's charm offensive as he delivers a college lecture on the central bank that sometimes misses the mark......

Czech Bank app checks for counterfeit cash
March 22 - The Czech national bank has unveiled a new phone app which it says will help consumers identify counterfeit money, using detailed photographs and descriptions of all valid versions of Czech banknotes and coins. With the Euro coming under c.....

U.S. Morning Call: China data tips stock futures down
Mar. 21 - U.S. stock index futures are pointing to a lower open after data showed that China's economic momentum slowed in March as factory activity shrank for a fifth straight month......

Market Pulse: PMI pain, no market gain
Mar. 22 - Markets rocked and global growth fears mount after PMI figures show a worrying degree of contraction in euro zone and Chinese factory activity. Markit's Chris Williamson discusses......

Bernanke, Geithner: Europe improving
Mar 21 - Summary of business headlines: Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner tell lawmakers: Europe on the road to recovery, but U.S. banks can withstand potential shock; Happy Birthday Twitter! Conway G. Gitt.....

The great mortgage debate
Mar 20 - Mortgage rates moved to their highest level since December- but whether this is the beginning of a sustained move above historically low rates is the subject of much debate. Bobbi Rebell reports......

Manufacturers must show us the money and invest for jobs and growth
It is impossible to ignore the politics of GlaxoSmithKline's 500m investment in its UK manufacturing business.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1db2dd73/mf.gif' border='0'/><br/><br/>.....

GlaxoSmithKline to build 350m plant in Cumbria
Drug company GlaxoSmithKline today confirmed that it will invest 350m in building its first new British manufacturing site in almost four decades, revealing that the plant will be based in Cumbria.<img width='1' height='1' src='http://telegraph.fe.....

Budget 2012: George Osborne has forgotten the first rule of tax reform
One of Kenneth Clarke's more memorable sayings was that he gave up on tax reform after discovering that whatever you did as Chancellor by way of fiddling around with the tax burden, you would create as many losers as winners; politically you would al.....

FSA to review handling of client monies after MF Global collapse
The Financial Services Authority is to review how companies handle client money following the collapse of MF Global, Lehman Brothers and WorldSpreads.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1db2dd76/mf.gi.....

Budget 2012: Oil companies enjoy unintended North Sea tax 'windfall'
North Sea oil and gas tax breaks designed to boost investment are set to hand windfalls totalling hundreds of millions of pounds to companies that would have paid the tax anyway.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/327.....

Budget 2012: Targeting the rich may cost us dear
George Osborne took the UK a step closer to the precipice on Wednesday.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1db2dd78/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r.....

Sale of Lloyds branches to the Co-op close to collapse
Controversial sale of Lloyds branches looks to be in trouble, increasing the likelihood the business may now be spun off in a stock market flotation.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1db2dd7a/mf.gif.....

One Hyde Park hit by stamp duty clampdown
All but three of the apartments sold at Britain's most expensive residential development are owned by the corporate entities targeted by the Government's crackdown on stamp duty avoidance.<img width='1' height='1' src='http://telegraph.feedsportal.....

Rating agencies found to be falling short according to EU regulator
Credit rating agencies Moody's, S&P and Fitch have been told to improve internal processes or face possible enforcement from the European Securities and Markets Authority.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/.....

DIY giant B&Q tunes in to YouTube
B&Q owner Kingfisher is turning to YouTube with videos showing customers how to change lightbulbs and lay flooring as it aims to grow profits in tough markets.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1.....

Gulf Keystone creates 25m exit bonus
Gulf Keystone has risked a run-in with shareholders after it unveiled a bonus plan for five directors that will see them scoop cash and shares of 23m for 2011 and a further 25m if the company is sold.<img width='1' height='1' src='http://telegraph.....

Budget 2012: Sour taste for black beer fans
The "death knell" sounded for a piece of British heritage when the Budget ended a decades-old tax relief for a unique traditional drink, brewers said.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1db2d309/mf.gi.....

Budget 2012: Self-storage companies warn over closure of VAT loopholes
Britain's two largest self-storage companies have warned they will be struck by the Government's attempts to close VAT loopholes.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1db2cf8a/mf.gif' border='0'/><.....

Analysts ponder AstraZeneca bid targets
City scribblers have for some time been speculating that AstraZeneca could have to seal a large deal to prop up its pipeline of medicines, and analysts at Liberum named the business they think the drug maker could swallow.<img width='1' height='1'.....

Financial services industry calls for quick independence referendum
Alex Salmond should stage the independence referendum as soon as possible without an ill-defined 'extra powers' question, Scotland's financial services industry has said.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568.....

Goldman Sachs in hunt for 'muppet' email
Goldman Sachs has started scanning emails for the term "muppet" as the Wall Street bank investigates allegations made in an explosive public resignation letter by a former employee last week.<img width='1' height='1' src='http://telegraph.feedspor.....

Markets hit as eurozone and China contract
Stock markets fell sharply amid signs that the German and French economies are stalling and Chinese manufacturing contracted for the fifth month in a row.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1db25939/m.....

Eurozone 'poster child' Ireland slumps back into recession
Ireland tumbled back into recession at the end of last year, dousing political claims that the "Celtic Tiger" has benefited from its tough austerity programme.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1db1f.....

Budget 2012: IFS warns Budget is based on optimistic assumptions
George Osborne is at risk of breaking his golden economic rules because his Budget appears to be based on optimistic assumptions about tax revenues, the Institute for Fiscal Studies (IFS) has warned.<img width='1' height='1' src='http://telegraph......

North America has the potential to be energy world's next Middle East, report argues
North America's energy sector has the potential to drive a "remarkable resurgence" that could see the Continent become the new Middle East in shaping the global supply of gas and oil, a new report has claimed.<img width='1' height='1' src='http://.....

Budget 2012: Chancellor should 'go to bed worrying' about UK growth
The Chancellor should go to bed every night worrying about how he is going to stimulate growth in the UK, a leading economist has warned.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1db1111b/mf.gif' border='0'.....

Diamond Jubilee china to outsell Royal Wedding, says Portmeirion
Sales of commemorative china for the Queen's Diamond Jubilee could be double those seen for the Royal Wedding, ceramics manufacturer Portmeirion said, as it reported record revenues of 53.6m for 2011.<img width='1' height='1' src='http://telegraph.....

Global market take fright at weak manufacturing data
Wall Street opened lower as global stock markets took fright as weak manufacturing data from Europe and China overshadowed more positive data about the domestic US jobs market.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726.....

Countries in recession: in pictures
In pictures: the nations suffering with continued economic contraction.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1db062aa/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r.....

US jobless claims fall to four-year low
The number of Americans claiming new unemployment benefits dropped to a four-year low last week, offering further evidence the jobs market recovery is gaining traction.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56830.....