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Wednesday 16 May 2012

UK Financial News on 2012-05-16

Bank warns of euro crisis 'storm'
The Bank of England warns that the eurozone is "tearing itself apart" with the "storm" threatening the UK recovery, as it cuts its forecast for growth this year......

Clinton Cards to close 350 stores
Retailer Clinton Cards, which is in administration, is to close almost half its stores across the UK, leading to the loss of almost 2,800 jobs......

UK unemployment falls by 45,000
UK unemployment fell by 45,000 to 2.63 million in the three months to March, according to the Office for National Statistics......

Facebook to sell 25% more shares
Facebook says it will sell 25% more shares than first planned in its forthcoming flotation in response to strong demand......

Flight delay payments move closer
Airlines are likely to be told they must pay compensation to passengers whose flights are delayed by three hours or more......

Fed wary of any US spending cuts
The Federal Reserve is worried about the impact on the US economy if government spending is cut sharply, minutes of its April meeting show......

Euro at four-month low on Greece
The euro hits a fresh four-month low against the dollar as political uncertainty in Greece fuels speculation it could leave the single currency......

Greggs renews 'pasty tax' fight
Greggs, the UK's largest bakery chain, blames wet weather for a drop in underlying sales and warns that the "pasty tax" could hit sales and profits......

Results delay hits Bankia shares
Shares in Bankia, the part-nationalised Spanish bank, fall more than 10% after it delays the release of its first quarter results......

Downturn hits Lola race car maker
Racing car maker Lola Cars applies for administration, blaming the economic downturn for a drop in trade......

Greeks withdraw cash on euro fear
Greeks withdrew 700m euros ($894m; 560m) from banks in the week ending on Monday, according to the Greek president......

Hague 'to fight for UK business'
Foreign Secretary William Hague promises to "argue relentlessly" for free trade around the world in an effort to boost the UK economy......

Manufacturers 'need more support'
UK manufacturers want the government to offer more support rather than "empty rhetoric", a new survey by business advisers BDO says......

Mortgage lending 'jumps in March'
There was a big rise in mortgage lending in March, as the stamp duty holiday for first-time buyers came to an end, lenders say......

SSE energy firm sees profits rise
Gas and electricity supplier SSE sees underlying profits rise 2% despite upheaval in the global energy market and economic uncertainty......

HTC shares dip on shipment delay
Shares of Taiwan's HTC fall after US customs officials hold up shipments of its new smartphones over a patent dispute......

'Royal' diamond sells for $9.7m
A 35-carat diamond passed among Europe's royalty for four centuries, the Beau Sancy, sells for twice its reserve at auction in Switzerland......

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......

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

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......

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

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......

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......

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......

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"......

Sina swings to loss on expenses
Sina Corp, China's largest internet portal and media website, posts a loss in the first three months of the year......

IPL suspends 'corrupt' players
India's cricket authorities suspend five IPL players who are being investigated for corruption after a sting by undercover TV reporters......

Reading takeover still 'ongoing'
Russian tycoon Anton Zingarevich's takeover of Reading is still not completed, two months after the original target date......

VIDEO: Mervyn King has 'misjudged' eurozone
Steffen Kampeter, the German deputy Finance Minister has told Newsnight that the governor of the Bank of England Mervyn King has 'misjudged' the activities of the eurozone......

VIDEO: 'It's taken a long time to find a job'
UK unemployment has fallen for the second month in a row. However, figures also show a record number of people working part-time who would rather be doing full-time jobs......

VIDEO: UK 'going through national pay cut'
Britain has been going through a "national pay cut" with most people not having a rise in two years, the City AM editor said......

VIDEO: Young black men fight to get work
Unemployment is falling, but for young black men it is still hard to find work. More than half are without a job, so what is it like applying every day?.....

AUDIO: 'Sheer chaos' if Greece leaves euro
What are the economic implications of the decision to leave or stay in the eurozone that Greece has to make? Andrew Balls, of PIMCO, a global investment firm, and Carsten Brzeski from ING bank in Brussels, debate the question......

VIDEO: Life as a shoemaker is revealed
Newsbeat talks to a shoemaker's apprentice about an often overlooked career path......

AUDIO: Why do people invest in gilts?
David Miller, partner at Cheviot Asset Management and Ian Williams, Chairman of Charteris Treasury Portfolio Managers, discuss the pros and cons of bond yields......

VIDEO: India attempts to prop up rupee
The Indian central bank has been intervening in currency markets to buy the rupee, after it sank to a five month low against the US dollar......

Dual identities of a princeling
The dual identities behind China's biggest political scandal in decades.....

How hard is it to get a 95% mortgage?
How hard is it to get one nowadays?.....

Power behind the phone: Imagination Technologies
The tech firm putting the smart into smartphone.....

What's wrong with Air India?
Problems run deep in India's national airline.....

My Business: Taking to the skies in Ukraine
Running an aerial tour business above Kiev.....

Italian university switches to English
A top Italian university switches to English.....

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

U.S. Day Ahead: Facebook reveals price of friendship
May 16 - The social network prices Thursday evening and could now be worth up to $104 billion. That would put it in the same league as Amazon and make it bigger than the likes of Hewlett-Packard and Dell......

Facebook insiders cash in
May 16 - Several of Facebook's early investors are adding their shares to the company's public offering, boosting the size of the IPO by 25 percent. Jeanne Yurman reports......

Worried Greeks withdraw savings
May 16 - Greeks say they are concerned about the country's potential return to the drachma and a new wave of economic problems as the country faces new elections in June. Ciara Sutton reports......

Trading at Noon: Managers like financials, some sell Apple
May 16 - 13-F regulatory filings for Q1 are out and hedge fund managers are gobbling up financial stocks with some selling Apple......

Greece, growth preoccupy Merkel, Hollande
May 16 - Despite their substantial differences, new French President Francois Hollande and German Chancellor Angela Merkel seemed to get off to a good start at their first meeting. Greece remains top of their agenda as worries increase about contagio.....

Europe Day Ahead: A look at markets and ahead to tomorrow
May 16 - A look at the close of the European markets and a look ahead to the next day's trading as well as what to expect from Asian markets overnight......

Breakingviews: Dimon shines on
May 16 - Jeffrey Goldfarb talks to Antony Currie about the mild shareholder rebuke of the JPMorgan boss at the banks annual meeting......

Occupy protestors arrested near ECB
May 16 - German police arrest protesters as they throw paint at officers during an operation to clear the Occupy camp in front of the European Central Bank building. Rough Cut (no reporter narration)......

Facebook likes the world to share
May 16 - With growth slowing in the U.S., the world's leading social network Facebook will be increasingly reliant on international markets as it seeks new sources of revenues reports Matt Cowan......

3XSQ: Facebook and Apple go big
May 16 - Facebook increases size of IPO while Apple may reportedly be increasing the size of the iPhone screen......

Bank of England succession: the odds
May 16 - Darren Haines of Paddy Power and Peter Thal Larsen of Breakingviews join Insider to discuss the current favourites to succeed Mervyn King as Governor of the Bank of England......

UK bank boss warns of continental 'storm'
May 16 - Bank of England Governor Sir Mervyn King warns of the "risk of a storm heading our way from the continent" as he flagged the euro zone as the greatest threat to the UK's recovery. Rough Cut (no reporter narration)......

Market Pulse: BoE King's outlook opens door to more QE
May 16 - A downbeat outlook from BoE governor Mervyn King fits with the gloomy climate: sterling falls, euro zone banks at record low, gold near key technical support......

Breakingviews: Greek banks' rickety crutches
Breakingviews......

Facebook likes the world to share
May 16 - With growth slowing in the U.S., the world's leading social network Facebook will be increasingly reliant on international markets to drive revenues after it goes public later this week. Matt Cowan reports......

Jobs boost for Britain's beleaguered economy
May 16 - Chris Grayling, the UK Employment Minister, tells Insider Britain's employment situation is moving in the right direction......

ECONOMY 2012: Bosses must earn their pay - Shell CEO
Shell chief Peter Voser tells Insider executive pay must drive shareholder value and be performance-related.....

Reuters Today: Greek vote fears spark market rout
May 16 - Equities tumble as Greece faces new elections that could push it closer to exiting the euro. The euro falls below $1.27, Spanish bond yields soar......

Market chaos over Greece fears
May 16 - Fears that a Greek exit from the euro zone will worsen the debt crisis facing other European nations is gripping financial markets, sending shares and other riskier assets lower as investors shift funds into safe havens like the U.S. dollar......

U.S. Morning Call: Facebook to increase IPO size
May 16 - Facebook will increase the size of its initial public offering by 25 percent and could raise as much as $16 billion......

WILL FIGHT FOR MONEY: MMA comes to cashed-up Asia
May 16 - Mixed Martial Arts is one of the most extreme forms of hand-to-hand combat. It may also be an extremely good way to make money, as entrepreneurs in Asia are learning......

GM puts the brakes on Facebook ads
May 15 - Summary of business headlines: General Motors to stop paid ads on Facebook; Stocks take another step back; New investigations into JP Morgan Chase trading loss; Retail sales barely rise; JC Penney stops dividend. Bobbi Rebell reports......

Shareholders back JP Morgan chief
May 15 - JP Morgan CEO admits losses were "self-inflicted" as shareholders vote against plan to split his role into two, separate positions. Sasha Salama reports......

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......

Shareholder Spring: investor revolts at Tullow Oil and 888
A trio of companies including oil explorer Tullow Oil have become the latest victims of the Shareholder Spring.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f6ce730/mf.gif' border='0'/><br/><br/>.....

Labour investigates rate-swap sales
The Labour Party has launched an investigation into the alleged mis-selling of interest rate hedging products by banks to small and medium-sized businesses.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f6ce24e.....

Athens in limbo as radical leftist waits in the wings
Greece appears set to elect an untested hard-Left political newcomer as its next prime minister after rival leaders set an election date of June 17 and installed a caretaker government with few powers.<img width='1' height='1' src='http://telegrap.....

Facebook's $100bn IPO will have 'halo effect' on other technology companies
When Mark Zuckerberg rings the Nasdaq bell on Friday, all eyes will be on the social network's share price and the hundreds of Facebook employees and investors who have become overnight billionaires in the social network's $100bn-plus initial public .....

Britain must make ready for the storm as clueless Europe tears itself apart
Once every half century or so, Europe "tears itself apart" in an orgy of self-destructive national tribalism. It happens just like clockwork.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f6cd9ca/mf.gif' border.....

SSE cuts bonuses over mis-selling, as derivatives hit profits
Energy supplier SSE saw annual pre-tax profits dive 87pc, from 2.1bn to 268.5m, after being hit by derivative losses and costs relating to halting doorstep sales after its conviction for mis-selling.<img width='1' height='1' src='http://telegraph......

Barclays director opposed Bob Diamond bonus
Barclays directors disagreed over a controversial bonus for the bank's chief executive, Bob Diamond, that became the focus of a shareholder revolt.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f6c7202/mf.gif' .....

What on earth is Britain doingtrying to save the euro?
It's not our job to save the single currency, argues Peter Oborne.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f6c6b2c/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/1335.....

Telegraph view: Facebook needs the cash to keep users entertained
Telegraph Digital Media Editor Emma Barnett says Facebook's stock market foray comes down to the need for the social media giant to invest in its product.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f6d2fd9/m.....

Internet analyst: Facebook not a sure fire investment
Ian Maude, Internet analyst at Enders Analysis and former vice president at AOL Europe, says Facebook could end up being overtaken by an upstart.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f6d2fda/mf.gif' bo.....

Debt crisis: Greek euro exit looms closer as banks crumble
A tsunami of capital flight from Greece threatens to overwhelm the authorities, forcing the country out of the euro before fresh elections in June.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f6c6b2e/mf.gif' .....

Spain could be locked out of the markets, says Mariano Rajoy
Mariano Rajoy pleaded for an urgent "defence of the euro project" yesterday as Madrid was close to being locked out of international markets by "astronomical" borrowing costs.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/.....

Euroland's 1 trillion question: after Greece goes, can Spain stay in?
Everyone knows Greece is leaving the euro, the real challenge is preventing the fall-out extending to Spain.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f6c6b30/mf.gif' border='0'/><br/><br/>&l.....

General Motors to keep Ellesmere Port factory open
General Motors will deliver a significant economic boost to the UK on Thursday by announcing that it is keeping its Ellesmere Port factory and saving 2,100 jobs - if workers vote in favour of a new pay deal.<img width='1' height='1' src='http://te.....

Barclays rises on UBS upgrade
The blue-chip index fell for a third day in a row but Barlcays managed to dodge the weak market trend.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f6bebc2/mf.gif' border='0'/><br/><br/><a hr.....

IIF's Charles Dallara says Greek exit 'somewhere between catastrophic and armageddon'
The damage to the rest of Europe from Greece leaving the euro would be "somewhere between catastrophic and Armageddon", the chief negotiator for the body representing private sector holders of Greek bonds said on Wednesday.<img width='1' height='1.....

Gold slides 20pc into bear market
Gold has lost a fifth of its value since its record peak last year, as fears that Greece will exit the euro prompt investors to move into cash.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f6bc5c7/mf.gif' bord.....

JP Morgan hit by lawsuit over 'clandestine conversion' that caused $2bn trading loss
JP Morgan shareholders have sued the bank over its $2bn (1.3bn) trading loss, alleging that a division within the bank had a "clandestine conversion" from one designed to manage risk to one that made multi-billion dollar bets.<img width='1' height.....

Debt crisis: as it happened - May 16, 2012
The Bank of England has cut its growth forecast for this year and said the economy won't fully recover until 2014, with the eurozone posing the biggest risk, as markets remain under pressure from fears of a Greek euro exit.<img width='1' height='1.....

Household squeeze worsens as inflation overshoots
Households face another crippling squeeze on disposable income this year after the Bank of England sharply lifted its inflation forecast and warned of rising mortgage costs, while expressing "surprise" that wages have been so weak.<img width='1' h.....

City of London to be held to account
"Show me the money!". It worked for Tom Cruise in Jerry Maguire. Will it work for the City of London Corporation?<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f6b88cb/mf.gif' border='0'/><br/><br/&.....

Debt crisis: live
The Bank of England has cut its growth forecast for this year and said the economy won't fully recover until 2014, with the eurozone posing the biggest risk, as markets remain under pressure from fears of a Greek euro exit.<img width='1' height='1.....

BGC executive banned from City over dishonesty concerns
Anthony Verrier, the senior executive at the heart of the battle between brokers Tullett Prebon and BGC, has been banned from working in the City.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f6b88cc/mf.gif' b.....

Regulator to probe Lamprell over share dealing ahead of profit warning
The City regulator is to ask Lamprell to explain how senior managers sold 1.7m worth of shares just weeks before it issued a profit warning.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f6b819a/mf.gif' border=.....

Europe will be left behind by China if eurozone does not reform, Richemont warns
People who "work their butts off" in northern Europe should not be expected to bail-out the likes of Greece and Spain, according to the head of luxury goods company Richemont.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/.....