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Thursday 17 May 2012

UK Financial News on 2012-05-17

Facebook shares valued at $100bn
Facebook prices its shares at $38 each ahead of one of the most eagerly anticipated share flotations in recent stock market history......

Moody's downgrades Spanish banks
Ratings agency Moody's cuts the credit ratings of 16 Spanish banks, as shares in struggling lender Bankia fell another 14%......

Jobs boost as UK gets Astra deal
Vauxhall's Ellesmere Port car plant will build a new Astra car in a deal that means huge investment and the creation and support of thousands of jobs......

Markets drop on eurozone worries
Concern over the eurozone debt crisis has continued to weigh on financial markets, with the euro dropping more than a cent against the US dollar......

More households in fuel poverty
Gas and electricity price rises at the end of last year are expected to have pushed 400,000 more households in England into fuel poverty......

Cairn shareholders rebel on pay
Shareholders at the Edinburgh oil and gas exploration firm Cairn Energy rebel against top executive pay......

Cameron defends his euro warning
David Cameron says it was "more dangerous to stay silent than to speak out" - and insists there will be no retreat on deficit reduction......

Buffett in newspaper investment
Berkshire Hathaway, the holding company of legendary investor Warren Buffett, invests in 63 local newspapers in the south-eastern US......

French Connection in profit alert
Shares in French Connection fall as the fashion retailer issues a profits warning following a continued fall in sales......

English house building falls back
The number of new homes started by house builders in England fell again in the first three months of the year, according to official figures......

France questions EU fiscal pact
France's new finance minister reiterates that the country's new socialist government will not ratify the European Union's fiscal pact......

Some work schemes 'of no benefit'
A parliamentary committee questions the length and quality of some apprenticeships, saying six month programmes are of no real benefit......

Rebuilding spurs Japan economy
Japan's economy grows by 1.0% between January and March compared with the previous three months, official figures show......

Chinese gold demand hits record
Chinese demand for gold hit a record in the first quarter of 2012 and it remains the world's biggest market for gold, the World Gold Council says......

Toshiba halts Japan TV production
Toshiba halts production of LCD televisions in Japan as demand drops, a spokesman confirms to the BBC......

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......

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......

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......

Spain's cost of borrowing jumps
The cost of borrowing on the international money markets rise sharply for Spain as investors fear further financial turmoil in Europe......

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......

Pinterest to get $100m investment
Social networking service Pinterest is to receive $100m in funding, prompting analysts to value the two-year-old firm at up to $1.5bn......

China Mobile in talks with Apple
China Mobile, the main mobile service provider in China and the largest in the world by users, could soon offer its customers Apple's iPhone......

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......

Tribunal rejects Rangers appeal
Rangers have their appeal against a year-long transfer embargo and a 160,000 fine rejected by a Scottish FA tribunal......

Olympic VIP tickets still to sell
Some 20% of hospitality tickets for the Olympic Games, which could set people back 4,500, are yet to be sold......

AUDIO: Taxman targets online traders
HMRC is targetting people who use sites such as eBay and Amazon to sell items online at a profit......

VIDEO: Spain pays high price for selling debts
The BBC's Aaron Heslehurst on the sharp rise in interests rates Spain has to pay for selling its debts - and Facebook gets ready for its stockmarket debut......

VIDEO: Ad boss on Facebook's power
Sir Martin Sorrell explains to Rory Cellan-Jones the strengths and weaknesses of Facebook when it comes to advertising, as the company prepares to float on the stock exchange......

AUDIO: Should workers be tested for drugs?
BBC Radio 5 live's Victoria Derbyshire got reaction to the Metropolitan Police chief's suggestion that all workers should be screened......

AUDIO: Lamont warns against 'crisis with no end'
Former chancellor Lord Lamont discusses the dangers of a breakup of the Eurozone......

VIDEO: Life as young farmer is revealed
A young farmer talks about why he does the job and why it's an often overlooked career path......

VIDEO: Eurozone was 'very close to collapse'
Benoit Coueure, from the European Central Bank, has been speaking about their decision to provide a loan of more than a trillion euros to hundreds of banks......

VIDEO: Who may do best in Greece poll?
The leader of a left-wing party in Greece, Alexis Tsipras, looks likely to do best in next month's election and there is increasing speculation that Greece could be forced out of the euro if his party wins......

The euro's survival 'requires political union'
The day the ECB saved the Eurozone's banks.....

How a Greek euro exit could affect you
How a Greek euro exit could affect you.....

How to ask for a pay rise
How to ask your boss for a pay rise.....

China's ageing economic time bomb
How an ageing population threatens China's economy.....

Swiss Army knife adapts to remain a cutting-edge tool
The Swiss Army knife had to adapt after the events of 9/11.....

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

Brazil's business labyrinth of bureaucracy
The red tape mountain facing new businesses.....

U.S. Day Ahead: 3, 2, 1...Facebook launches IPO
Social Media Editor Anthony De Rosa......

Short sales lower foreclosure filings: RealtyTrac
May 17 - Banks seized fewer homes in April as U.S. foreclosure filings fell to their lowest level in nearly five years due to increasing short sale activity, according to RealtyTrac......

Hollande holds first cabinet meeting
May 17 - French President Francois Hollande gets down to work with his first cabinet meeting and a pay cut. Rough Cut (no reporter narration)......

Wealth Strategies: Eaton Vance Dividend Fund turns to tech
May 17 - Judy Saryan, Equity Fund Manager at Eaton Vance talks about why Apple and Microsoft are top holdings in the Dividend Builder Fund, and why she expects to see more tech dividends in the future......

Wal-Mart sales take heat off bribery
May 17 - Wal-Mart beat profit forecasts as more Americans shopped at its flagship stores, temporarily overshadowing Mexican bribery accusations. Conway G. Gittens reports......

Trading at Noon: Skeptics sidelined as Sears soars
May 17 - Shares at Eddie Lampert's Sears Holdings are soaring after the retail chain shaved off some of its stake in Sears Canada.....

Elon Musk's SpaceX dreams
May 17 - Billionaire entrepreneur Elon Musk hopes to make history when his SpaceX Dragon Capsule attempts to become the first privately-built spaceship to dock with the International Space Station......

Breakingviews: Exxon gets the jitters
May 17 - Antony Currie and Christopher Swann discuss the oil giants attempts to fend off shareholder ire at CEO Rex Tillersons $35 mln pay package......

'Europe Day Ahead Facebook IPO to Make Rich Richer
May 17 - Analysts say the debut trading day of Facebook is likely to show strong demand for the stock, with the price rising in the short term......

Buying second hand is big business
May 17 - Charity shops are experiencing a record boom as more of the squeezed middle classes buy second hand in a bid to save money. Hayley Platt reports......

UK to euro zone "make up or break up"
May 17 - UK Prime Minister David Cameron say he will do whatever is needed to protect Britain's economy and banks from a break-up of the euro zone. Rough Cut (no reporter narration)......

3XSQ: Preparations for Facebook IPO
May 17 - Brokerages handing out shares while employees prepare for all-night "Hackathon"......

Sports Spread: Champions League final
May 17 - Sports Spread previews the Champions League final, takes a look at England's new squad for the Euros and assesses the Test match between England and the West Indies......

U.S. Morning Call: Facebook frenzy hits brokerages
May 17 - Several brokerages have stopped taking Facebook IPO orders as the social network prepares to price tonight......

Market Pulse: European stocks face "death by 1,000 cuts"
May 17 - A quiet day in Europe - stocks only down 1%. Spanish bank worries dominate, euro zone financials at a record low. But some encouraging signs from Madrid's bond auction......

Breakingviews: New French cabinet won't scare the horses
May 17 - Chris Hughes of Breakingviews says French politicians will toe the line on Europe, but the question is whether president Francois Hollande's new cabinet will tackle reform at home......

Breakingviews: When markets slow, where to go?
Breakingviews Wayne Arnold......

"Trust me," Greece will not leave euro: Greek MP
May 17 - As Greece counts down to its next election, one of the country's youngest MPs shares her thoughts on the Left, the Right and the chances of a euro exit......

Apple plans fatter iPhone 5 to choke market-hungry Samsung
May 17 - Accustomed to leading the industry, Apple is playing catch-up with its next iPhone 5 design, opting for a larger screen to compete against Samsung's supersized handsets......

Economy 2012: Gold Fields CEO says gold price will rise
May 17 - The CEO of the world's fourth largest gold producer Gold Fields, says the price of bullion will need to get close to $2,000 for the industry to remain profitable......

Inside China: Business as usual for top brass
May 17 - Chinas recent gritty political scandals have solidified the nation's leadership style rather than weakened it, says Harvard professor and noted China expert Ezra Vogel......

A frenzied start to the Cannes film fest
May 17 - Comedy dominated the opening hours of the 65th annual Cannes Film Festival with UK satirist Sacha Baron Cohen parading in front of cameras with a live camel, while the festivities officially kicked off with a screening of Wes Anderson's Moon.....

Spain's bank customers withdraw funds: report
May 17 - Spain's borrowing costs have shot up at a bond auction, after economic data confirmed the country is back in recession and reports that nationalized Bankia SA had suffered an outflow of deposits hammered its share price. Ciara Sutton reports.....

Facebook's advertising challenge
they weren't working. Jeanne Yurman reports......

Europe drags down Wall St.
May 16 - Summary of business headlines: Europe worries drag down Wall Street, Housing and factory data encouraging; Facebook ups size of IPO; Crude and gold under pressure. Bobbi Rebell reports......

Santander: is my bank account safe?
Fears that Spain will be caught up in the eurozone debt crisis is provoking fears among savers with deposits held by banking giant Santander. But should they act?<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f.....

Euro crisis ensnares Spain
Spain moved back into the eye of the eurozone storm on Thursday, as the country's borrowing costs rocketed to unsustainable levels and the country's banking sector was hit by mass downgrades.<img width='1' height='1' src='http://telegraph.feedspor.....

Moody's downgrades Spanish banks - statement in full
Moody's has cut the ratings of 16 Spanish banks, and Santander UK. Here is the rating agency's statement in full.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f74b7e7/mf.gif' border='0'/><br/><br/&.....

Facebook valued at $104bn on stock market debut
Facebook's initial public offering has been one of the most hotly-anticipated in corporate history, and today it lived up to the hype.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f7483b4/mf.gif' border='0'/&g.....

JPMorgan boss Jamie Dimon faces Congressional grilling
JPMorgan chairman and chief executive Jamie Dimon is set to face a Congressional grilling over the bank's $2bn trading loss.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f744afc/mf.gif' border='0'/><br/&.....

Hewlett-Packard may cut 25,000 jobs
Hewlett-Packard is reported to be planning cuts of up to 25,000 jobs, as the world's largest PC maker grapples with declining demand.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f744afd/mf.gif' border='0'/>.....

US manufacturing adds to Fed's fears
A sharp drop in a key measure of US manufacturing has reignited fears over the pace of the recovery in the world's largest economy.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f73f011/mf.gif' border='0'/>&.....

Facebook fever replaces fear - but how long will this last?
Facebook hired more than 10 banks and brokers to help pull off today's flotation.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f73f012/mf.gif' border='0'/><br/><br/><a href="http://da.feedspo.....

Lloyds chairman: JP Morgan style loss could hit any bank
The shock $2bn (1.3bn) trading loss taken by JP Morgan could hit any bank, the chairman of Lloyds Banking Group has warned.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f73f013/mf.gif' border='0'/><br/&g.....

Turn off your iPad, David Cameron, and start dealing with Britain's debt
The PM talks about fiscal sanity but doesn't stop borrowing, says Fraser Nelson.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f73f014/mf.gif' border='0'/><br/><br/><a href="http://da.feedspor.....

Debt crisis: as it happened May 17, 2012
Ratings agency Fitch warns that all eurozone countries face a greater than 50pc chance of a downgrade if a stable, pro-bail-out government is not formed following Greece's second round of elections.<img width='1' height='1' src='http://telegraph.f.....

Ellesmere Port offers a model for Britain
The Government has finally been handed a blueprint for how it can drag Britain out of its economic malaise: General Motors' investment in Ellesmere Port.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f744077/mf.....

Treasury examines 20bn growth plan
The Government is examining plans to commit more than 20bn of taxpayer money to infrastructure projects in an effort to rekindle flagging economic growth.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f744078/m.....

Reject RBS pay deal, investor group says
The Government has been told to oppose Royal Bank of Scotland's "excessive" executive pay deals and to remove both the bank's auditors and its audit committee chairman over concerns about the accounts.<img width='1' height='1' src='http://telegrap.....

General Motors' decision shows the benefit of business
It has long been said that the UK is a safe haven for capital fleeing eurozone contagion. It's becoming a safe haven for investment too.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f74407a/mf.gif' border='0'/.....

Are the Germans destined to save the euro?
It is an article of faith in Berlin that the single currency must survive, whatever the cost, says Jeremy Warner.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f74407b/mf.gif' border='0'/><br/><br/&.....

Global banks see market rally on Greek exit
Major global banks are advising clients to prepare for a stock market rally and a resurgence of the euro if Greece is forced out of monetary union, betting that world authorites will flood the international system with liquidity.<img width='1' hei.....

Icap to benefit from Eurozone break-up, says Numis
Interdealer broker Icap finished in positive territory despite the blue-chip index closing at its lowest level in six months.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f73e4a3/mf.gif' border='0'/><br/.....

Shareholder spring clocks up three more casualties
Cairn Energy, Prudential and Cookson have become the latest companies to feel investors' wrath after they suffered huge shareholder revolts over pay.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f73e4a4/mf.gif.....

Aviva says new CEO search to take all year
Insurance company Aviva said the search for a new chief executive would take the rest of the year as it reported a 5pc drop in life insurance sales, reflecting tough conditions in its key European markets.<img width='1' height='1' src='http://tele.....

Fitch warns of mass eurozone downgrades as frontrunner to lead Greece rails at 'barbaric' austerity
All eurozone countries face downgrades to their debt ratings if the risk of a Greek exit rises following next month's elections, a leading credit agency warned last night.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56.....

Debt crisis: live
Ratings agency Fitch warns that all eurozone countries face a greater than 50pc chance of a downgrade if a stable, pro-bail-out government is not formed following Greece's second round of elections.<img width='1' height='1' src='http://telegraph.f.....

Facebook backers sell bigger stakes on strong demand for shares in IPO
Some of Facebook's biggest and earliest investors have made last-minute decisions to sell more shares in the social network's $100bn initial public offering, fuelling concerns about their faith in the long-term value of the social network.<img wid.....

French finance minister Pierre Moscovici warns there will be no fiscal pact without growth measures
France will not ratify Europe's fiscal pact unless it is revised to include growth-boosting measures, the country's new finance minister warned.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f73630c/mf.gif' bor.....

Bank of England's Paul Fisher says no to QE unless crisis hits
Britons should see no more money-printing stimulus from the Bank of England unless a crisis hits, said one of its top policymakers.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f73630e/mf.gif' border='0'/>.....