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Wednesday 25 April 2012

UK Financial News on 2012-04-25

Economy in double-dip recession
The UK returns to recession, after a sharp fall in construction leads to the economy shrinking by 0.2% in the first three months of 2012......

Employers 'can force retirement'
A landmark ruling by the UK Supreme Court outlines the powers that employers have to force workers to retire......

Royal Mail fears downward spiral
Royal Mail faces a "spiral of decline" unless conditions are placed on firms competing with it, chief executive Moya Greene warns......

Federal Reserve more optimistic
The Federal Reserve's interest rate setters raise their forecasts for US economic growth in 2012 but leave rates unchanged......

Eurozone leaders push for growth
Eurozone leaders urge governments to focus on growth amid fears about the negative impact of austerity measures......

HSBC 'to cut 2,000 staff in UK'
Banking giant HSBC is set to announce 2,000 job losses in the UK on Thursday as part of its global cost-cutting plans, reports say......

Demand for airliners helps Boeing
Airlines updating their fleets with more fuel-efficient planes boost Boeing, which reports 58% growth in three-month profits......

Insurance costs dip for drivers
Motor insurance costs fell during the first three months of the year after a period of rising premiums, the AA says......

EU proposes 6.8% rise in budget
The European Commission proposes a controversial 6.8% increase in the EU's budget for 2013......

US durable goods see sharp fall
Orders for durable goods in the US fell 4.2% in March, the Commerce Department says, pointing to weakening growth......

Hungary breaks EU bailout impasse
Hungary's government agrees to strengthen its central bank's independence, opening the way to an EU bailout package......

'Work an extra 11 years' warning
Nearly half of people aged over 50 will have to work and save for 11 years beyond state pension age to keep their standard of living, a report says......

Apple doubles quarterly profits
Apple reports better-than-expected results, with profits almost doubling in first three months of the year to $11.6bn (7.2bn)......

Wal-Mart moves to limit scandal
Shares in Wal-Mart fall another 3% as the supermarket giant moved to limit a bribery scandal in Mexico......

S Korea firms halt US beef sales
Two of South Korea's biggest retailers halt sales of US beef after the discovery of a case of "mad cow" disease in California......

'Power brands' sales lift Premier
Sales at Premier Foods in the first three months of 2012 rose 1.3% year-on year to 427m, helped by an increase in sales of its "power brands"......

Hard drives offer undeleted data
Many people are a "soft touch" for fraudsters because they fail to wipe data from old disks, says the UK's privacy watchdog......

Thousands to receive fraud alert
More than 76,000 people are to receive alerts from the City watchdog warning them that they were on "fraudsters' phone books"......

Ruling halts 100m in tax relief
Tax officials welcome ruling that prevents a group of wealthy investors from claiming more than 100m in tax relief......

California 'mad cow' case found
The US Department of Agriculture confirms it has detected a case of bovine spongiform encephalopathy, or 'mad cow' disease, in a California dairy cow......

EU warns Argentina over oil move
The European Commission warns Argentina that its nationalisation of the oil firm YPF will have a long-term impact and may put off investors......

European stocks regain composure
European shares recover slightly from Monday's sharp falls as investors shake off rising Spanish bond yields and worsening forecasts of Greek economic contraction......

Siemens cuts 2012 profit forecast
German industrial giant Siemens cuts its full-year profit forecast for 2012 as losses continue in its wind power division......

'Strong growth' at Sports Direct
Sports Direct has reports "strong growth" in quarterly sales and profit, and says it is looking forward to a boost in trade from this summer's landmark events......

S Korea's LG returns to profit
South Korea's LG Electronics turns to profit in the first three months of 2012 after two straight loss-making quarters......

MHL to hand over Rangers papers
Sir David Murray's company is ordered to hand over copies of correspondence with Craig Whyte's lawyers over the sale of Rangers......

Clubs vote for financial changes
Championship clubs making losses of more than 6m will be fined or put under a transfer embargo from 2014-15......

Football pitches 'sorely lacking'
The quality of pitches and grounds is stopping people playing football, members of the Welsh assembly are told......

VIDEO: UK economy falls back into recession
The figures, which were slightly worse than expected, were hindered by a sharp fall in the construction industry......

VIDEO: Leaders clash over GDP
In prime minister's questions, Ed Miliband challenged David Cameron over the news that the UK has slipped back into recession......

VIDEO: Fears of construction companies
The UK is officially in recession and the construction sector was particularly volatile in the last quarter......

AUDIO: Employers can force retirement
The Supreme Court has ruled that the employers of a lawyer were entitled to force his retirement......

VIDEO: Clegg urges banks to lend
In a speech to the Institute of Directors, the Deputy Prime Minister, Nick Clegg, said banks needed to continue lending to businesses......

AUDIO: Murdoch-Hunt talks 'perfectly reasonable'
Lord Fowler, former Conservative party chairman, and Damian Collins MP, Conservative member of the Culture, Media and Sport Select Committee, discuss the implications of allegations that Culture Secretary Jeremy Hunt privately supported attempts by N.....

VIDEO: UK economy falls back into recession
The performance of the economy in the past four years has been the worst in peacetime for at least a century......

VIDEO: The pitfalls of all-inclusive holidays
All-inclusive holidays have soared in popularity in recent years, yet not everyone is happy with the growth of these deals......

Could congestion offer a road to economic growth?
Could congestion offer a road to economic growth?.....

Sir Stuart Rose bets on phone app
Sir Stuart Rose swaps M&S for a mobile app start-up.....

New UAE crematorium caters for expats
Inside the UAE's first crematorium.....

In pictures: Beijing motor show 2012
The car is the star at the Beijing motor show.....

Chinese carmakers eye European markets
How long before Europeans start buying them?.....

Q&A: Austerity measures derailed?
Will Dutch political turmoil stop eurozone belt-tightening?.....

U.S. Day Ahead: Amazon has to amaze soon
Breakingviews Columnist Rob Cyran.....

Bernanke: Fed prepared to do more for economy
April 25 - Federal Reserve Chairman Ben Bernanke says the U.S. central bank "would not hesitate" to launch another round of bond purchases to drive borrowing costs lower if it looked like the economy needed it. Rough Cut (no reporter narration)......

Saft says Bernanke consensus strong, low rates to stay
Columnist James Saft......

Peng Peng the sheep heralds new era of cloning
April 25 - Chinese scientists have cloned a genetically modified sheep containing a "good" type of fat found naturally in nuts, seeds, fish and leafy greens that helps reduce the risk of heart attacks and cardiovascular disease. Named "Peng Peng", th.....

Mad cow case shouldn't hurt U.S. beef exports: Agriculture secretary
April 25 - U.S. Department of Agriculture's Tom Vilsack doesn't expect the first case of mad cow disease in the U.S. in the past six years to have a significant impact on beef exports......

The Exchange: Contemporary Art and Commerce
Rob Cox talks to Brett Gorvy of Christie's and Art Economist Don Thompson about the multitude of rare, contemporary art works about to hit auction......

Jim Rogers: Why the Fed is wrong
April 25 - Legendary international investor Jim Rogers lashes out against the Fed and its recent economic strategies. Bobbi Rebell reports......

ECONOMY 2012: Ryder contract signings up, indicates optimism
April 25 - Ryder System CEO Greg Swienton says that his trucking clients are signing more long-term contracts, an indication that they see improvement in the U.S. economic outlook......

Trading at Noon: FOMC minutes due, earnings preview
April 25 - Investors gear up for the Fed's policy statement and a look ahead at earnings reports from Apple, Boeing, Caterpillar and others......

Breakingviews: Apple keeps rolling
April 25 - Jeffrey Goldfarb and Breakingviews columnists explain why investors can, for now, stop looking for reasons to sell Apple......

Wealth Strategies: Covered call options can hedge downside
Apr. 25 - Tyler Vernon, CIO of Biltmore Capital, says investors can hedge downside risk in the current sideways market by selling covered call options or buying put options for insurance......

Draghi throws crisis back to governments
April 25 - European Central Bank President Mario Draghi gave no indication on Wednesday that the ECB was poised to provide more support for banks or governments but also said the time was not right to consider rolling back its crisis-fighting measure.....

Seeing demand across sectors despite "bumpy" recovery: Ryder
April 25 - Ryder System saw its Q1 earnings rise 16% citing demand from all industries, but CEO Greg Swienton says the U.S. is in a long term, bumpy recovery......

3XSQ: Apple zooms, durable goods sink
April 25 - Apple reaches new heights, selling more than 35 million iPhones and nearly 12 million iPads in Q1, while March durable goods tumble......

Ericsson shares gain despite Q1 earnings drop
April 25 - The world's biggest mobile phone equipment maker Ericsson beats expectations for earnings and margins, sparking hopes that market weakness has bottomed out......

Surprise profit lifts Credit Suisse
April 25 - Swiss bank Credit Suisse eked out a small first-quarter profit, as cost cuts and a better-than-expected showing from its fixed income arm offset a 1.5 billion Swiss franc ($1.65 billion) charge on its debt. Hayley Platt reports.....

Portuguese put down new roots
April 25 - Tough austerity measures in Portugal are forcing some city dwellers to seek work and a better lifestyle in the countryside. Hayley Platt reports......

Wind project chills Siemens
April 25 - German engineering conglomerate Siemens slashed its full-year profit forecast on Wednesday after incurring another major charge related to delayed offshore wind power projects in the second quarter. Hayley Platt reports......

U.S. Morning Call: Apple soars; crushes Street estimates
April 25 - Apple posts a profit that nearly doubled to $11.6 billion, crushing expectations and dispelling fears of declining iPhone sales......

Market Pulse: UK in recession in first double-dip since '70s
April 25 - A big fall in construction and weak services push the UK back into recession. The slump piles the pressure on PM David Cameron's coalition government......

UK drops into double dip recession
April 25 - Office of National Statistics' chief economist Joe Grice explains why Britain's economy has slipped back into recession, the first double dip since the mid 1970s......

Asia reacts to U.S. case of mad cow
April 25 - Asian countries react to case of mad cow disease in the U.S. Julie Noce reports......

Breakingviews: Credit Suisse a glimpse of the new normal
April 25 - Credit Suisse is shrinking, but costs are down and capital position is improving, the bank is moving in the right direction but there is still some way to go say Breakingviews......

SAP confirms bullish outlook as Hana platform drives growth
April 25 - SAP Co-CEO Jim Hagemann Snabe tells Insider about the software group's first quarter results and his optimistic view of the rest of the year.....

Credit Suisse CEO says no more job cuts after modest Q1 gain
April 25 - The CEO of Credit Suisse, Brady Dougan, outlines how the group eked out a small Q1 profit despite its own debt loss, and says the group will not increase the planned 3,500 job cuts......

George Osborne's holy grail is unlocking corporate Britain's cash pile
Who would have thought it? A recession with flared trousers.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1ebd775b/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/1327333896.....

Debt crisis: as it happened, April 25, 2012
US Federal Reserve raises growth forecasts and says will keep interest rates low until 2014, as chairman Ben Bernanke says the bank "remains prepared to do more" to help economy.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/327.....

Brussels to relax 3pc fiscal targets as revolt spreads
The European Commission is preparing a major shift in economic strategy, fearing that excessive fiscal tightening will inflict unnecessary damage on a string of eurozone countries.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/3.....

Debt crisis: live
US Federal Reserve raises growth forecasts and says will keep interest rates low until 2014, as chairman Ben Bernanke says the bank "remains prepared to do more" to help economy.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/327.....

The dreaded double-dip
Telegraph View: Chancellor George Osborne needs a more aggressive growth strategy.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1ebd14a5/mf.gif' border='0'/><br/><br/><a href="http://da.feedsp.....

French President Nicolas Sarkozy's fiscal pact referendum deals a hammerblow to Angela Merkel's austerity plan
Nicolas Sarkozy has promised to hold a referendum on Europe's fiscal pact, dealing a hammerblow to Angela Merkel's "non-negotiable" plans to impose austerity on the eurozone.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f.....

US taxpayers will not make profit from bailing out banks, says TARP inspector general Christy Romero
American taxpayers will not see a profit from the $700bn (433bn) bail-out that Congress passed at the height of the financial crisis, a government watchdog has warned.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300.....

Bob Diamond's 17.7m package at Barclays is 'out of order', says IoD chief Simon Walker
The multi-million pound remuneration package of Barclays chief executive Bob Diamond is "out of order", according to the head of one of Britain's largest business groups.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568.....

Bob Diamond's 17.7m pay package at Barclays is 'out of order', says IoD chief Simon Walker
The multi-million pound renumeration package of Barclays chief executive Bob Diamond is "out of order", according to the head of one of Britain's largest business groups.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568.....

Almost a third of Capital Shopping Centre shareholders vote against executive pay
Britain's biggest shopping centre owner has suffered a bruising shareholder rebellion over pay.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1ebc836e/mf.gif' border='0'/>.....

Premier Foods urges shoppers to 'buy British'
The manufacturer behind Mr Kipling Cakes and Bisto gravy has called on households to fly the flag for Britain this summer by choosing brands made in this country.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1e.....

Britain in double-dip recession: the ONS rains on the UK's austerity parade
The last time Britain experienced a double-dip recession Jaws had just been released in cinemas and West Ham were the proud holders of the FA Cup.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1ebc873c/mf.gif' b.....

RBS could lose 20bn of its value if banking reforms are introduced, warns chief Stephen Hester
Royal Bank of Scotland could see 20bn wiped off its market capitalisation once controversial reforms are introduced across the industry, the company's chief executive Stephen Hester has warned.<img width='1' height='1' src='http://telegraph.feedsp.....

Talk of Italian retreat fuels Kesa Electricals
City scribblers put a spark under Kesa Electricals by suggesting that the retailer could lift its profits by selling off its Italian business.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1ebc743b/mf.gif' borde.....

Raleigh Cycle sold to Accell for $100m
Raleigh Cycle, one of the most famous brand names in bike industry, has been sold to Dutch company Accell for more than $100m (62m).<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1ebc743d/mf.gif' border='0'/>.....

Russian mobile phone operator MegaFon plans London flotation
Russia's second-largest mobile phone operator, MegaFon, is planning a flotation in London after resolving a long-running dispute between its owners over strategy and governance.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/3272.....

Qatar royal family buys Greek island of Oxia for knockdown 5m
The 1,236-acre uninhabited island of Oxia bought for 5m.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1ebbd42c/mf.gif' border='0'/>.....

The world's most expensive private islands
Twenty of the world's most expensive private islands currently available to hire.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1ebbd42d/mf.gif' border='0'/>.....

Why the UK may not have double dipped back into recession
Reaction to disappointing growth in the first three months of the year was generally of "disbelief", and not just because the data were so weak.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1ebbc8ab/mf.gif' bor.....

Airlines 'not interested' in Stansted and Gatwick, says BAA chief financial officer Jos Leo
BAA has warned there would be "little sense" in building an extra runway at any other London airport than Heathrow as long-haul network carriers aren't interested in bases such as Stansted.<img width='1' height='1' src='http://telegraph.feedsporta.....

Sports Direct seeks bigger windfall for Ashley as sales rise
Sports Direct plans to give founder Mike Ashley a bigger share bonus - worth 23m at today's prices - after the sporting goods retailer reported a better-than-expected 13.2pc rise in fourth-quarter sales.<img width='1' height='1' src='http://telegr.....

HSBC targets back office workers in 2,000 UK job cuts
Investment advisers and back office workers will be the main targets of 2,000 job cuts HSBC is to make in its British business as part of the bank's efforts to reduce costs.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/.....

Former Healthcare Locums chairman Alan Walker denies 'sexual impropriety' with Kate Bleasdale
Alan Walker, former chairman of Healthcare Locums, has vigorously denied allegations by chief executive Kate Bleasdale that she was wrongfully sacked and that he touched her breast.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/.....

We need to learn from the 1930s
In the 1930s, Britain's economy grew thanks to low interest rates and housebuilding, writes Tim Leunig.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1ebb7268/mf.gif' border='0'/><br/><br/><a h.....

Glaxo says it's 'compelling owner' of Human Genome Sciences as sales disappoint
GlaxoSmithKline has stressed that it is the "compelling owner" of Human Genome Sciences, which last week rebuffed a $2.6bn (1.6bn) bid from the British drug giant.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1.....