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Wednesday 23 May 2012

UK Financial News on 2012-05-23

Merkel challenged over EU growth
EU leaders begin summit talks in Brussels with Germany resisting pressure to launch eurobonds as a way to ease the debt crisis and revive growth......

Hewlett-Packard cuts 27,000 jobs
Hewlett-Packard, the world's largest computer maker, is to cut 27,000 jobs by end of 2014 as part of a drive to "simplify" the business......

Facebook and banks face lawsuit
Facebook, its founder Mark Zuckerberg, and the banks leading its flotation are sued over claims that financial information was not disclosed......

Jury backs Google in Oracle fight
Internet giant Google did not infringe patents belonging to software developer Oracle, a court in California has ruled......

Big fall in April UK retail sales
UK retail sales volumes fell sharply in April largely because of a record fall in petrol sales, according to official figures......

Bank eyed case for more stimulus
Bank of England policymakers voted by 8-1 this month against pumping more money into the economy, but the decision was "finely balanced" for some......

BAE signs 1.9bn Saudi jet deal
British defence giant BAE signs a 1.9bn ($3bn) deal with Saudi Arabia to supply Hawk trainer jets, safeguarding over 200 UK jobs......

Google funds computer teaching
The search firm's chairman announces funds to place new computer science teachers in English schools......

Courier scam 'nets conmen 1.5m'
Fraudsters are making increasing profits from a scam in which people are tricked into allowing their bank card to be sent straight to the conmen......

Sky cleared in pay-TV film probe
Netflix and Lovefilm have weakened Sky's grip on the pay-TV film market, the regulator says, meaning it is unlikely to intervene in the sector......

Catalogue debt problems 'rising'
Unaffordable debt from mail order catalogues is prompting more calls for help to a charity than payday loans, mortgages or rent......

Dell focuses on touchscreen PCs
The US computer maker hopes new Windows 8 touchscreen computers can turn around a slump in sales to consumers......

Ocado shares jump on sales report
Shares in the online grocer, Ocado, which mostly sells Waitrose goods, jumped by almost 7% after it said sales were likely to be higher......

Burberry annual profits rise 24%
Upmarket fashion retailer Burberry reports strong growth in annual profits as it continues to expand around the world......

Fiat and Mazda in car alliance
Carmakers Fiat and Mazda announce they have formed an alliance to develop two-seater sports cars......

Nationwide lifts mortgage lending
The Nationwide, the UK's largest building society, says it increased mortgage lending sharply last year and is now looking at lending to businesses......

BBC pension ruling is 'welcomed'
Unions and the BBC have each welcomed parts of a High Court ruling regarding changes to a staff pension scheme......

Japan exports lower than forecast
Japan's exports rise less-than-forecast in April hurt by a drop in shipments to China and Western Europe......

Wonga misled debtors, says OFT
Money lending firm Wonga is criticised by the Office of Fair Trading for using aggressive and misleading debt collection methods......

Homeserve investigated by FSA
Homeserve, the company that sells emergency repair services for householders, will be investigated by the Financial Services Authority......

Bogus PPI complaints 'hit 6,000'
Nearly 6,000 people made bogus compensation claims for payment protection insurance mis-selling to the Financial Ombudsman last year, as total complaints rose......

East Asia 'at risk' from eurozone
The eurozone debt crisis could have a negative impact on growth of East Asian economies, the World Bank warns in its latest report......

India rupee falls to historic low
The Indian rupee continues its downward slide of the past few days and hits an all-time low against the dollar......

Euro 'threat' to global outlook
A weak eurozone is the single biggest threat to the global economy, according to the Organisation for Economic Co-operation and Development......

Google seals deal with Motorola
Google's $12.5bn purchase of US phone maker Motorola Mobility has been completed days after it received approval from the Chinese government......

China sales fuel Lenovo profits
Lenovo, the world's second largest PC maker, reports big rise in annual profits thanks to strong demand for its products in China......

Reebok India alleges $233m fraud
Reebok India has lodged a police complaint against two former employees accusing them of commercial and financial irregularities......

Liverpool make stadium 'progress'
Managing director Ian Ayre says Liverpool are moving closer to a decision on whether to redevelop Anfield or move to a new stadium......

Official 'offers 2012 tickets'
A senior Olympic official is suspended after a BBC investigation revealed he was willing to sell thousands of pounds worth of 2012 tickets for cash......

CVC makes 1bn Formula 1 disposal
Formula 1's largest shareholder, CVC Capital, sells 21% of its stake to three investment firms in a 1bn deal......

VIDEO: BAE signs 1.9bn Saudi jet deal
British defence giant BAE signs a 1.9bn ($3bn) deal with Saudi Arabia to supply Hawk trainer jets, saving 218 jobs in East Yorkshire......

VIDEO: Economic lessons from the 1930s
What can be learned from the depression of the 1930s compared with the economic problems facing the UK and other nations today?.....

VIDEO: Merkel challenged over EU growth
EU leaders have started summit talks in Brussels with Germany resisting pressure to launch eurobonds as a way to ease the eurozone crisis......

VIDEO: Facebook to be sued by shareholders
The social networking site, Facebook, and several banks leading its flotation are to be sued by disgruntled shareholders......

VIDEO: Drop in April retail sales
Retail sales figures for April fell by 2.3% after a sharp drop in petrol sales......

VIDEO: Burberry reports 'stellar' profits
The fashion retailer Burberry has reported strong growth in annual profits as it continues to expand around the world......

AUDIO: Tributes to 'extraordinary' remote control inventor
British inventor Trevor Bayliss and journalist Kate Williams discuss how the remote control has affected our lives......

AUDIO: Beecroft 'has a pop at the Treasury'
Tory party donor and adviser Adrian Beecroft has called Vince Cable the business secretary, a "socialist who does very little to support business". Political correspondent Chris Mason has more details......

Greece: The upside of default
Why a Greek default wouldn't spell the end of the world.....

Indian youth brand Happily Unmarried
How two entrepreneurs created a design brand for young Indians.....

Financial Ombudsman: Can we help you?
How can the financial ombudsman help you?.....

Singapore schools 'cut the cramming'
Singapore's schools are a success story - but now want to be even better.....

London seeks lead role as China's currency goes global
London seeks lead role as China currency goes global.....

Stepping down from ARM Holdings
Chip designer's president looks back at his 30 years at the firm.....

U.S. Day Ahead: Goldman's Blankfein looks secure
Breakingsviews Columnist Antony Currie......

Robert Hormats peers optimistically over U.S. fiscal cliff
May 23 - U.S. Under Secretary of State for Economic, Energy and Agricultural Affairs Robert Hormats says hes optimistic that the fiscal cliff the OECD warns of can be avoided as long as lawmakers can come to an agreement on taxes and spending......

China grabs bigger film role
May 23 - This year's Cannes Film Festival could prove to become a turning point for China's role in the global film market, with a heightened emphasis on co-productions designed to appeal to Chinese moviegoers. Matt Cowan reports......

Dell downgrades pummel stock
May 23 - Shares of Dell plunged as much as 17 percent in morning trading after the personal computer maker's weak forecast and disappointing quarterly results triggered a wave of brokerage downgrades. Bobbi Rebell reports......

Trading at Noon: Zuck's Facebook trades up amid lawsuit
May 23 - Facebook shares are moving higher today as shareholders sue Zuckerberg for offering advice to analysts to cut forecasts......

Breakingviews: Where was Mark Zuckerberg?
May 23 - Richard Beales and Breakingviews columnists discuss how Facebook has become the poster child for failed IPOs......

Europe's new power couple
May 23 - In a shift away from Europe's traditional Franco-German partnership, France's new President Francois Hollande met Spain's Prime Minister Mariano Rajoy to discuss the need for growth, banking liquidity and euro bonds ahead of the EU summit in.....

Nissan adds vital Spanish jobs
May 23 - Japanese carmaker, Nissan, is to employ an extra 700 people in Spain after announcing it will build a new electric van at its Barcelona plant. Andrew Potter reports......

Europe Day Ahead: Investors brace for weak data
May 23 - German manufacturing and Euro zone services are expected to have weakened significanlty in May, as the crisis in the region continues to take its toll......

3XSQ: Facebook: The Failed IPO
May 23 - Probes and lawsuits of Facebook IPO piling up......

Germany's SAP bids for cloud domination
May 23 - Europe's biggest software maker SAP has announced plans to buy commerce networking company Ariba for $4.3 billion in the latest move to take on industry leader Oracle. Joanne Nicholson reports......

IEA on standby to open oil taps
May 23 - The IEA's Maria van der Hoeven tells Insider she's on standby to release strategic oil reserves if theres a disruption to supply......

WTO Chief Backs Growth Calls
May 23 - WTO director general Pascal Lamy says the euro zone is right to shift the emphasis towards stimulating growth......

U.S. Morning Call: Facebook talked itself down-sources
Facebook urged analysts to cut their growth estimates for the firm ahead of its IPO......

Market Pulse: Euro on ropes ahead of Merkel-Hollande bout
May 23 - The euro falls to near 2-year low ahead of an informal EU summit. Germany's historic zero-coupon bond auction is a success, Deutsche's George Buckley discusses UK retail sales plunge and MPC minutes......

Breakingviews: Italys amazing financial engineering
May 23 - To avoid spooking markets Italy is attempting an amazing feat of financial engineering, and the Eurovision song contest has a clear message for euro governments say Breakingviews......

Marketings future leaders try out for an education
May 23 - How do the best and brightest future leaders in marketing get trained? Its not an MBA. Follow StudentBeans.com founder James Eder as he attempts to get on to an elite course. Zak Sos reports......

A day in the life of the OECD secretary-general
May 23 - Insider's Axel Threlfall spends the day with Angel Gurria during OECD week 2012 in Paris. Finding out more about the OECD's role in the crisis what the future holds for the euro zone......

China - still the world's best consumption story
May 23 - Yes, export growth is down and investment is in a slump. But investors take heart - China's shoppers are keeping up the pace, says Andy Rothman, CLSAs China Macro Strategist......

Reuters Today: Merkel v Hollande, seconds out...round 1
May 23 - EU leaders discuss the euro crisis over dinner, with euro bonds a major bone of contention. Plus, Germany pays nothing to borrow for 2 years, Facebook takes $19 bln hit, Egypt votes......

Lenovo's juggling act
May 23 - China's PC maker Lenovo is marching towards the top spot in the PC world, say analysts. But its future really depends on how well it can diversify beyond that space into tablets and smartphones......

Stocks mixed; Facebook extends fall
May 22 - Summary of business headlines: S&P 500 rises for second day, but concerns about Europe tempers Wall Street; Existing home sales near two-year high; Facebook stock sinks more as Morgan Stanley controversy grows; Best Buy beats forecasts. Conw.....

U.S. Day Ahead: Facebook banker faces regulatory fallout
May 22 - Facebook shares could come under more pressure Wednesday as top regulators call for a review of its IPO process......

Regulators digging into JPMorgan loss
May 22 - JPMorgan Chase's stock has sunk more than 16 percent since it disclosed a more than $2 billion derivatives trading loss earlier this month, and regulators continue to look for answers as to what happened and when. Bobbi Rebell reports......

Morgan Stanley's Facebook about-face
May 22 - Facebook shares remain under pressure after it was revealed the Internet analyst at lead underwriter Morgan Stanley cut his revenue forecasts at the same time the bank was pitching the IPO to potential investors. Conway G. Gittens reports......

Letting Greece leave the euro is the lesser of two evils for all concerned
Markets were capitulating last night as a euro break-up took a step closer.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fa49634/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.c.....

Battersea Power Station bidder plans car park
One of the leading bidders for Battersea Power Station is planning to build a multi-storey car park inside the historic site.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fa49473/mf.gif' border='0'/><br/.....

Hewlett-Packard to slash 27,000 jobs
Hewlett-Packard is to slash 27,000 jobs, or 8pc of its global workforce by 2014, in a radical shake-up of the company.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fa49474/mf.gif' border='0'/><br/><.....

Facebook sued by investors over flotation
Facebook and its Wall Street advisers are being sued by investors claiming they were misled about the company's business prospects before its record flotation.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fa49.....

Debt crisis: Germany holds a gun to Greece's head
Pressure on Greece increased dramatically on Wednesday night after Germany's central bank called for a suspension of financial support to Athens and eurozone finance ministries agreed to draft contingency plans for a Greek exit from the euro.<img .....

Does anyone honestly think another VAT cut would cure economy?
Not since the 1970s, when the UK was forced to ask for a bail-out, has the International Monetary Fund's "article IV" annual health check caused such a kerfuffle.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1f.....

Over-hyped Facebook loses its friends in the IPO queue
If he hasn't already, Stephen Hester should de-friend Mark Zuckerberg.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fa437d3/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/.....

Debt crisis: live
EU leaders arrive in Brussels for growth summit as the Bundesbank says a Greek exit from the euro would be "manageable" and Athens denies that eurozone leaders were told to prepare for the eventuality.<img width='1' height='1' src='http://telegrap.....

LSE shares fall on Italian banks sale
Shares in the London Stock Exchange tumbled more than 7pc after two of its largest investors offloaded their stakes in the bourse.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fa437d4/mf.gif' border='0'/>.....

Bank hints QE could restart this summer
The Bank of England has dropped a heavy hint that it is ready to restart quantitative easing this summer if the economy continues to falter.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fa430e9/mf.gif' border=.....

Petrol rush followed by record fall in April
Sky-high prices and panic buying of petrol in March saw fuel sales collapse last month at their fastest rate since records began in 1996.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fa430ea/mf.gif' border='0'.....

Regulator gives BSkyB a boost as it drops regulation plan
BSkyB has been thrown a lifeline by the Competition Commission after the watchdog backtracked on proposals to cut the number of rights to Hollywood films the broadcaster is allowed to buy.<img width='1' height='1' src='http://telegraph.feedsportal.....

The Australian mining magnate at the top of the rich list
Billionaire Gina Rinehart is not a woman to pick a fight with, says Jonathan Pearlman.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fa430ec/mf.gif' border='0'/>.....

Spain injects 9bn into ailing lender Bankia
Spain's finance minister said the government would inject "at least 9bn" (7.2bn) into ailing lender Bankia while insisting it was an isolated problem which would not spread to the rest of the country's banking system.<img width='1' height='1' src=.....

Greece denies eurozone preparing contingency plans for break-up
Greece has denied that eurozone officials had recommended member countries prepare for the country's possible departure from the single currency.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fa3a4eb/mf.gif' bo.....

Miners lead the way as blue-chips tumble
Retreating miners bore the brunt of Wednesday's market tumble, with dealers' screens a sea of red.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fa3a4ec/mf.gif' border='0'/><br/><br/><a href=".....

Robert Tchenguiz had Kaupthing execs 'resident' in his home
Robert Tchenguiz, the entrepreneur under investigation for his dealings with Icelandic bank Kaupthing, had senior executives of the bank resident in his London home prior to its collapse, a court heard.<img width='1' height='1' src='http://telegra.....

Draft energy Bill may deter investment, Citigroup warns
The draft energy Bill, intended to attract 110bn investment in new power generation, may actually deter investors, a leading analyst has warned.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fa38f55/mf.gif' bor.....

O2 blasts Ofcom for 'analytical' failings in row over 4G
O2 has blasted Ofcom for "legal, factual and analytical failings" including not bothering to look at its own paperwork, in an escalating row over whether Orange and T-Mobile should be allowed to launch 4G mobile services this year.<img width='1' h.....

Ford reclaims ownership of blue oval logo
A public address system usually reserved for firedrills at Ford's headquarters in Detroit delivered far less alarming news this week.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fa311e4/mf.gif' border='0'/>.....

US economy risks falling back into recession because of 'fiscal cliff'
America will slump back into recession next year unless Congress prevents the economy falling off a "fiscal cliff", a US government agency has warned.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fa28eb5/mf.gi.....

Zero interest rate: can Britain's consumers learn from Japan?
With the prospect a rate cut increasing, Japanese consumers tell Michael Fitzpatrick how they have learnt to cope.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fa2481b/mf.gif' border='0'/><br/><br/.....

Bundesbank says Greek euro exit would be 'manageable'
The impact of a Greek exit from the eurozone would be substantial but "manageable", Germany's Bundesbank said, raising pressure on Athens to keep its painful economic reforms on track.<img width='1' height='1' src='http://telegraph.feedsportal.com.....

Burberry's Angela Ahrendts: men want to look smart
Burberry, famous for its red, black and camel-coloured check design, has seen revenue and profits rise as more men bought its luxury items.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fa21b46/mf.gif' border='.....

Low staff levels could make ESM ineffective, warns consultants A.T. Kearney
Consulting firm charged with evaluating the structure of Europe's new permanent rescue facility has raised questions about whether it will have enough staff to function effectively, according to documents seen by Reuters.<img width='1' height='1' .....