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Tuesday 15 May 2012

UK Financial News on 2012-05-15

New figures reignite prop trading battle
JP Morgan loss renews support for Volcker Rule, but bankers maintain regulatory focus is misguided.....

High-spending Sunrise spoils for Icap fight
The world's largest exotic equity derivatives brokerage has gone on a spending spree for staff and technology to challenge arch-rival Icap amid OTC boom.....

JP Morgan plots Asian prime brokerage push
US bank aims to replicate the model it rolled out with some success in Europe last summer.....

Springtime in Japan as activist manager launches new fund
Governance for Owners is launching a new fund targeting small and medium-sized business in Japan.....

Instinet shake-up could see broker exit markets
The global agency brokerage wholly owned by Nomura will become the electronic arm of the Japanese bank's equities franchise.....

Madoff investor UBP shuts London funds
Swiss asset manager and private bank closes institutional funds in the UK capital.....

HSBC to focus dark pool strategy on Europe
Banking giant is in the advanced stages of planning for a new European dark pool trading platform, and has quashed plans to develop a similar venue in Hong Kong.....

Ballardie exits Barclays amid cost-cutting drive
One of the European trading industry's high-profile female executives has left Barclays after a broader review of the bank's cost base.....

Afme prepares for launch of securitisation kitemark
Move to revive Europe's ailing ABS market is expected to go live in the third quarter.....

EU agrees strict new bank rules
The European Union agrees strict new rules for banks, intended to make them safer and eliminate the need for future bailouts......

Eurozone economy avoids recession
The eurozone avoids returning to recession after recording zero economic growth in the first three months of the year, figures show......

Greece pays bond swap hold-outs
Greece agrees to pay off some of the investors who rejected its bond swap earlier this year......

Facebook raises flotation price
Facebook raises the price range at which it hopes to sell shares to between $34 and $38, potentially putting its total value above $100bn......

JPMorgan's Dimon wins pay backing
The head of JPMorgan Chase, the biggest US bank, is backed by shareholders days after it revealed a $2bn (1.2bn) trading blunder......

UK trade deficit narrows in March
The UK's overall trade gap in March narrowed to 2.7bn, but the deficit for trade in goods alone was unchanged at 8.6bn, official figures show......

'Compelling case' for road tolls
There is a "compelling" case for a system of road charging, according to a report by the Institute for Fiscal Studies and the RAC......

Ministers end contract with A4e
The government terminates a contract with welfare-to-work company A4e after deciding that continuing would be "too great a risk"......

US April retail sales in slowdown
US retail sales barely grew in April, rising 0.1% compared with a gain of 0.7% the month before, while consumer prices stayed unchanged......

New Greece poll due as talks fail
Debt-stricken Greece is set to go to the polls again after parties failed to agree on a new government, says Socialist leader Evangelos Venizelos......

Coty withdraws $10.7bn Avon bid
Fragrance firm Coty withdraws its $10.7bn (6.6bn) bid for Avon Products, saying the US beauty firm has taken too long to respond to its offer......

Work days lost to sickness down
The number of working days lost to sickness fell again in 2011, the Office for National Statistics has said......

Iceland refunds to councils rise
More than half of the money lost by UK councils following the collapse of Icelandic banks has now been recovered......

C4 in profit despite ad downturn
Broadcasting group Channel 4 saw profits increase in 2011, despite a downturn in advertising and a loss of 42m at its flagship terrestrial channel......

'Forced labour' in food industry
Report claims exploitation at the bottom of the UK labour market for food industry's migrant workers......

Africa 'must boost food output'
The United Nations Development Programme says Africa needs to boost agricultural productivity if it is to sustain its economic boom......

Child benefit changes 'flawed'
The government's planned changes to child benefit are "seriously flawed" and undermine the principle of individual taxation, accountants say......

Energy price battle lines drawn
Energy company E.On promises that it will not increase UK residential energy prices this year amid hints of rising costs in the winter......

Disabled benefit reform 'needed'
Planned changes to disability benefits will go ahead, the Work and Pensions Secretary Iain Duncan Smith insists, saying that reform is needed......

Foreign investment in China slips
Foreign direct investment in China falls for a sixth straight month in April, as worries persist over the health of the country's economy......

Osborne: Greek euro talk damaging
Open speculation about whether Greece can remain a member of the eurozone is "damaging" for the whole of Europe, Chancellor George Osborne says......

India to cut Iran oil imports 11%
India says it will cut imports of Iranian oil by 11% in the current financial year as it continues to face pressure from the US......

Bharti Airtel faces investigation
Telecoms giant Bharti Airtel is being investigated for money laundering and violations of foreign exchange rules by Indian authorities, a minister says......

Groupon's quarterly loss narrows
US voucher firm Groupon says its quarterly loss has narrowed from a year earlier and it has a record 36.9 million active customers......

Ratings cut on 26 Italian banks
Ratings agency Moody's cuts the credit ratings on 26 Italian banks, including Italy's largest lenders Unicredit and Intesa Sanpaolo......

Aviva to host 2013 Heineken final
Next season's Heineken Cup final will be staged at the Aviva Stadium while Dublin will also host the Amlin Challenge Cup decider......

VIDEO: Eurozone economy avoids recession
The eurozone has narrowly avoided returning to recession after recording zero growth in the first three months of the year, figures have shown......

VIDEO: Hopes for West Country mining
Contracts giving a mining company ownership of land in Cornwall which it says it needs for new buildings have been signed......

VIDEO: What lies ahead for Hermes?
The luxury handbag maker Hermes is celebrating its 175th anniversary. How will this traditional, family-run business face the future?.....

VIDEO: How are UK exporters surviving?
How are European exporters weathering the economic crisis?.....

VIDEO: Euro uncertainty 'undermining recovery'
The UK Chancellor says uncertainty about Greece and the euro is "undermining the entire European recovery"......

VIDEO: 'Made in the UK'
Rising costs in the Far East mean that an increasing number of businesses are considering moving production back to the UK......

AUDIO: Germany 'will get pulled in' to recession
The credit rating agency Moody's has announced a downgrade of 26 Italian banks, including Italy's two biggest lenders. Sony Kapoor, managing Director of think tank Re-Define, gives his view on the issue and on the future of the eurozone......

VIDEO: Gold tarnished by illegal trade
As demand for gold booms around the world, the UN is calling for tougher measures to prevent smuggling and the exploitation of workers in unregulated mines......

Tech powers Philippines call centre success
The technology powering the Philippines call centre revolution.....

Viewpoint: Protecting against the eurozone crisis
How firms can protect themselves against eurozone turmoil.....

DR Congo mining's reputation in tatters
The Congo's reputation in tatters.....

Viewpoint: A rethink in the financing of innovation
Why securing finance can be tough for technology start-ups.....

Viewpoint: Why New York City is best for small businesses
The boss of NYC's small business department speaks out.....

U.S. Day Ahead: Booming agriculture could fuel Deere results
May 15 - Deere's set to see a healthier bottom line, top hedge fund managers reveal their big short positions and how loud is the debate over more stimulus at the Fed?.....

Is Facebook worth it?
May 15 - Facebook may be a social network but its also very much a business, and now that its going public, the company will be under the microscope of investors. Bobbi Rebell reports......

Sharing the love of Facebook
May 15 - Users can't seem to live without sharing on Facebook, and that's the secret to the social network's unprecedented success. Bobbi Rebell reports......

Saft Says: Separate commercial and investment banking now
Columnist James Saft talks about JPMorgan's $2 billion losses and says it's time for banks and regulators to go back to Glass-Steagall and separate investment and commercial banking......

Breakingviews: Facebook's analytical gymnastics
May 15 - Rob Cox and Breakingviews columnists discuss how investors are rationalizing the hype over Facebook's IPO......

New France president's euro crisis challenge
May 15 - As Francois Hollande is sworn in as French President, the euro crisis is deepening. Greece is headed for new elections after the political parties failed to form a government and discussions increase about a possible exit from the euro zone......

Trading at Noon: 'Dimon' in the rough; Facebook frenzy
May 15 - JPMorgan CEO Jamie Dimon faces shareholders at the company's annual meeting and Facebook raises its IPO range......

Honda's mass-market motorbike for India
May 15 - Japan's Honda, the world's largest motorcycle manufacturer, launches its first mass-market motorcycle in India. While in Tokyo, it shows off its latest personal mobility device. Joanna Partridge reports.....

Facebook IPO price hike
May 15 - Facebook has increased the price range of its initial public offering to raise more than $12 billion dollars, giving the company a potential value of more than $100 billion. Bobbi Rebell reports......

Europe Day Ahead
May 15 - A look to the close of the European markets and a look ahead to the next day's trading, as well as what to expect from the Asian markets overnight......

Bair: Wall off risk at big banks after JPM debacle
May 15 - Former FDIC Chair Sheila Bair says big banks should separate their safe and high-risk trading operations into subsidiaries. She adds these units should have their own management boards......

Jim Rogers: Dimon has "no idea" what's going on at JPMorgan
Elizabeth Koraca speaks with Jim Rogers, CEO of Rogers Holdings, about regulating banks, why he's not buying gold, and is short stocks......

3XSQ: Facebook valuation could top $100 billion
May 15 - Social networking giant Facebook raises the price range of its IPO to $34 to $38, which would give it a valuation above $100 billion......

Ancient city of Jericho boasts new, eco-friendly walls
May 15 - Developers in the West Bank's Jericho, the world's lowest lying city, are building an the first ever eco-housing project in the Palestinian territories.The homes are designed to offset searing summer temperatures and put a modern face on the.....

U.S. Morning Call: Facebook hikes IPO range, source says
May 15 - According to a source, Facebook is now aiming to raise $12.1 billion as it prepares to go public on Friday......

Market Pulse: What's Moving Today and Why
Insider has its finger on the market pulse, analyzing and making sense of the biggest movers of the day......

French first ladies face off: Salut Carla, bonjour Valerie
May 15 - France is exchanging one glamorous first lady for another as Carla Bruni-Sarkozy quits the Elysee Palace and the new president Francois Hollande's partner Valerie Trierweiler considers moving in......

Commercializing crocodile conservation
May 15 - A commercial crocodile farm in Mexico is striking a balance between business and conservation to help protect the region's endangered Morelet crocodile. The reptile is under threat from habitat loss and poaching but the farm is helping the s.....

Breakingviews: Germany's 'free lunch' economics
May 15 - Strong technology and labour reforms keep making Germany richer but trade surpluses bring credit losses and political spats, says Breakingviews......

Seeking cover? Scurry over to Asia's yield plays!
May 15 - Investors have been cutting back on their riskier holdings as they wait for raging global risks to settle down. But there are better assets to park your money in this maelstrom. Cathy Yang reports......

In the Boardroom: volatile start-ups need independent boards
columnist, Lucy Marcus meets the founder of tech start-up, PeerIndex......

Asian markets down as Greek risks dominate
May 15 - Asian stocks and commodities lower, as Greek parties struggle to resolve differences over austerity reforms needed to form a workable government. Arnold Gay reports......

Reuters Today:Greece hangs by thread, Germany defies gravity
May 15 - Poles apart: Greek political talks look doomed, while Germany performs another economic miracle......

Franois Hollande becomes French President
May 15 - Franois Hollande is sworn in as the first Socialist president of France in 17 years, as Nicolas Sarkozy leaves the presidential palace. Rough Cut (no reporter narration)......

Italy's banks under pressure
May 15 - Italian banks look set to face more difficulties in raising funds after rating agency Moody's carried out a mass downgrade of 26 lenders. Ciara Sutton reports......

Coalition needs to sort out growth before it can sell RBS
It's not often shareholders call for a chief executive to be paid more, but that's the view of some investors in RBS.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f63740b/mf.gif' border='0'/><br/><.....

New legal threat to Apple over ebooks
Apple has been dealt a blow in its escalating row over alleged ebook price fixing, after a New York court refused to throw out a class-action lawsuit against it.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f6.....

Groupon profit restores investor faith in daily deals sector
The slump in the value of Groupon has made the daily deals website the butt of many jokes about the discount on its own shares. But the Chicago-based company on Tuesday showed signs of resurgence as it posted its first quarterly profit.<img width=.....

F&C on track to hit cost-cutting targets
F&C Asset Management has sought to put its turbulent recent past behind it with new efforts to appease angry shareholders and deliver much-needed growth.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f63741.....

Bondholder fury as Athens pays off debts to hedge funds
Greece's hard-won 206bn (164bn) debt restructuring deal agreed in March was declared void by some bondholders yesterday after Athens decided to pay off a separate rump to avoid the chaos of default.<img width='1' height='1' src='http://telegraph.f.....

Global lenders face 'killer losses' on Greek debt
Foreign holders of 422bn of Greek debt were warned to brace themselves for "killer losses" as coalition talks in Athens collapsed, threatening Greece's future in the eurozone.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/.....

JP Morgan faces FBI investigation over losses
Shareholders backed their embattled chief Jamie Dimon at the bank's annual shareholders meeting on Tuesday, voting against a proposal to split the CEO and chairman roles just days after the company revealed a massive trading loss.<img width='1' he.....

Debt crisis: as it happened May 15, 2012
Greece will hold new elections after politicians failed to agree a ruling coalition, sending the euro and shares lower, as new French president Francois Hollande meets Germany's Angela Merkel for key first talks.<img width='1' height='1' src='http.....

RBS investors say Stephen Hester 'not paid enough'
Royal Bank of Scotland's chief executive, Stephen Hester, is not being paid enough for his work, according to some of the taxpayer-backed lender's largest shareholders.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56830.....

Facebook lifts price range for $100bn IPO
Facebook has increased the target price range for its initial public offering to $34 to $38 a share, putting it on course for a valuation of more than $100bn (62bn).<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s.....

Greece on brink of collapse
Europe's financial crisis lurched into a perilous new phase as dire predictions emerged of a collapse in Greece's economy.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f6364f9/mf.gif' border='0'/><br/>.....

Italy's banks shaken as economic slump deepens
As Greece erupts, Italy is moving into the eye of the storm. Its economy is contracting at speeds not seen since the depths of the slump in 2009 as draconian austerity bites, greatly increasing the risk of social revolt and a banking crisis.<img w.....

France's Hollande's plane struck by lightning en route to Germany
Francois Hollande and Angela Merkel acknowledge their difference as the new French leader insisted that everything must be put on the table" that could help growth in Europe.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f.....

Debt crisis: live
Greece will hold new elections after politicians failed to agree a ruling coalition, sending the euro and shares lower, as new French president Francois Hollande meets Germany's Angela Merkel for key first talks.<img width='1' height='1' src='http.....

JP Morgan's Jamie Dimon finds it's less stormy in the south
America's sheer size is a gift to any company that would prefer its shareholder meeting to be a low-key affair. JP Morgan had, of course, picked Florida as the venue for this year's gathering long before last Thursday's revelation of a $2bn trading l.....

London 2012 Olympics: G4S interviewing 84,000 candidates
G4S says it is interviewing 84,000 candidates for its Olympic security contract.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f62d963/mf.gif' border='0'/><br/><br/><a href="http://da.feedspor.....

New UK nuclear plants threatened by EU state aid rules
A new generation of UK nuclear plants is in jeopardy because of EU regulations that are inflating costs and may deter investment, MPs and energy suppliers warned.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f.....

Eurozone debt crisis: how a Greek exit from the euro might unfold
Greece's decision to call a second, anti-austerity election has taken the country one-step closer to a dangerous exit from the eurozone. Below we sketch out how the process might unfold.<img width='1' height='1' src='http://telegraph.feedsportal.c.....

Business leaders call for urgent Government meeting over aviation strategy
A group of business leaders has accused the Government of damaging the British economy and allowing the country to lose business to continental Europe because they do not have an aviation strategy.<img width='1' height='1' src='http://telegraph.fe.....

Numis says Man Group may not be worth more than "liquidation value"
Man Group was one of the worst performers as City analysts argued the company is "worth no more than its liquidation value".<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f62a16b/mf.gif' border='0'/>.....

George Osborne wins battle for tougher rules on UK banks
George Osborne has scored a victory over his European rivals by securing the right to impose stricter financial regulation on Britain's banks.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f621922/mf.gif' borde.....

Jamie Dimon passes shareholder vote on JP Morgan role
Shareholders backed their embattled chief Jamie Dimon at the bank's annual shareholders meeting on Tuesday, voting against a proposal to split the CEO and chairman roles just days after the company revealed a massive trading loss.<img width='1' he.....

Government ends A4e contract
The Government has terminated a contract with welfare-to-work firm A4e after deciding that continuing would be "too great a risk".<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f6179b0/mf.gif' border='0'/>.....

Coty withdraws $10.7bn offer for Avon
Coty claims Avon took too long considering $10.7bn offer.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f60f94f/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/133516313780/.....

Coty withdraws $10.7bn offer for Avon
Coty claims Avon took too long considering $10.7bn offer.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f5c0616/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/133516247425/.....