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Tuesday 29 May 2012

UK Financial News on 2012-05-29

Investors demand analysts examine governance issues
A number of the UK's largest asset managers have accused sellside analysts of failing to focus on corporate governance issues at the firms they cover.....

Black-box Winton goes to CERN for talent
Winton Capital, Europe's largest computer-driven hedge fund, has been forced to take its search for top research scientists to the particle physics capital of Switzerland.....

Basel rules narrow hybrid options
The Basel III financial regulations are making it prohibitively expensive for banks to issue one class of hybrid capital.....

iShares launches first consolidated ETF tape
iShares will this week launch the first consolidated tape for the European ETF market, as part of a joint venture with data provider Bloomberg......

AkzoNobel looks at second longevity swap
AkzoNobel is considering a longevity swap for the second of its large UK pension funds, following a deal announced for the first fund last week.....

Fund plan for Milans Galleria of Italian luxury
Italy's luxury goods association Fondazione Altagamma has unveiled a development plan for Milan's 19th-century landmark the Galleria Vittorio Emanuele II.....

More hires than fires lift some market gloom
While the majority of firms are cutting staff a few opportunistic banks and boutiques in the City are increasing their headcount in an attempt to snap up talent in uncertain markets.....

Facebook shares fall to new low
Facebook shares fall to a new low below $29, less than two weeks after its high-profile flotation, as Russia's biggest social network cancels its planned share sale......

Blackberry maker warns of loss
The company behind the Blackberry smartphone warns it will make a loss in its latest quarter and make "significant" job cuts, as it hires banks to review its business......

Hedge fund boss fined 3m by FSA
Hedge fund boss Alberto Micalizzi is fined 3m for concealing losses and lying to investors in a case that the regulator says is "amongst the most serious" of its kind......

Ex-Olympus boss gets settlement
The sacked British former chief executive of Olympus who shed light on an accounting scandal settles his claim of unfair dismissal......

Profits jump at Jaguar Land Rover
Jaguar Land Rover, the Indian-owned car manufacturer, announces a 34% rise in profits as sales hit a record high due to strong demand from emerging markets......

Three Spanish banks agree merger
Three Spanish savings banks - Ibercaja, Liberbank and Caja3 - approve a merger to strengthen their weakened balance sheets......

Firm condemned for 'Jubilee loan'
A payday lender is criticised after it published a blog suggesting people could take out a loan to fund their Jubilee celebrations......

Retail sales 'post strong rise'
Retail sales rose strongly in May compared with a year earlier, according to the CBI business organisation......

Dentistry 'needs urgent reform'
Some dentists are misleading their patients about their right to NHS treatment, so the patients pay for more expensive private ones instead......

BP to resume operations in Libya
BP, the British oil major, has announced that it will be resuming exploration operations in Libya, as safety fears subside following the 2011 conflict......

Fall in US consumer confidence
US consumer confidence falls to an eight-month low as fears about the global economy and a falling domestic stock market hits sentiment......

Tenants 'face more debt problems'
People who rent their homes are increasingly likely to have debt problems, the Consumer Credit Counselling Service says......

'Pasty tax' U-turn warms Greggs
Greggs, the UK's largest bakery chain, enjoys a 6% share price boost after the government revises its "pasty tax" proposal......

Topps Tiles' profits fall by half
Profits at Topps Tiles fell by half in the past six months to March due to falling customers numbers in tough economic times, the company says......

South African growth rate slows
Economic growth in South African slowed sharply in the first quarter of the year, hit by a big fall in output from its key mining sector......

De La Rue annual profits decline
Profits at banknote printer De La Rue more than halve as a result of increased investment and restructuring work after production problems last year......

Pinewood's 7.1m planning impact
Pinewood Shepperton says the government's decision not to award it planning permission for a substantial expansion has cost the company 7.1m......

Pink diamond is sold for $17.4m
A rare pink diamond is auctioned for $17.4m (11.1m) - far higher than expected - after six minutes of frenzied bidding in Hong Kong......

Online tax calculator falls over
A government internet service allowing people to check how their income tax and national insurance is spent, struggles on its first day......

April house price drop confirmed
House prices in England and Wales fell last month following the end of the stamp duty holiday for first-time buyers, the Land Registry says......

Women 'still missing' in top jobs
Fewer than a third of the UK's most influential jobs are held by women, figures compiled by the BBC News website show......

Protection for savers publicised
Bank, building society, and credit union branches will have to display posters and stickers about which compensation scheme applies to them......

Japan spending continues in April
Japan's retail sales and household spending continues in April, albeit at a slower pace than in earlier months......

China to launch yen-yuan trade
China will allow direct trading of the yuan and the Japanese yen next month, in a move aimed at promoting trade between Asia's two biggest economies......

Call for infrastructure funding
The government should do more to encourage private pension funds to invest in public sector infrastructure projects, the CBI says......

US law firm files for bankruptcy
Dewey & LeBoeuf files for bankruptcy protection and plans to liquidate its business, which would make it the biggest collapse of a US law firm......

Prudential appoints new chairman
UK insurer Prudential ends its five-month hunt for a new chairman by appointing Paul Manduca to replace Harvey McGrath......

Blackberry firm loses top manager
Blackberry-maker Research In Motion says chief legal officer Karima Bawa has resigned, the latest in a series of departures from the firm......

Rangers' administrators issue CVA
Rangers' administrators Duff & Phelps issue an offer to creditors for a company voluntary arrangement......

Lazio captain arrested by police
Lazio's Stefano Mauri is arrested by match-fixing investigators, as Antonio Conte and Domenico Criscito are questioned......

Neath FC wound up at High Court
Welsh Premier League side Neath FC is wound up at London's High Court, a week after the rugby club escaped a similar order at the same court......

VIDEO: Cherie Blair: More women needed at the top
Philippa Thomas spoke to Cherie Blair about what she believes can be done to get more women to the top......

VIDEO: Are the BRICS solid?
The BBC's Economics correspondent Andrew Walker explains what and how important the BRICS countries are......

VIDEO: Unflagging efforts for Jubilee fun
There are business winners - and losers - in the eastern region as the nation prepares for the Diamond Jubilee holiday......

VIDEO: Is it possible to live on mobile money?
BBC technology correspondent Rory Cellan-Jones tries to live without cash for a few days using just mobile phone payment applications instead......

VIDEO: RFID tech ousts fake bird's nests
RFID technology is being used in Malaysia to stop the nests used to make Chinese delicacy bird's nest soup being counterfeited.....

AUDIO: Jaguar bites back
Jaguar Land Rover is expected to report another year of record results when it releases earnings later today in another sign of a revival of the car industry in the UK, which now exports more cars than it imports for the first time since 1976. JLR is.....

AUDIO: Why Britain is so yellow
Farmers are growing more oil seed rape than ever before. The BBC's Fiona Trott reports from a yellow field in Northumberland to find out why......

VIDEO: Ireland to consider fiscal treaty
On Thursday, voters in the Republic of Ireland will go to the polls to decide in a referendum whether to back the European Fiscal Treaty, which would give Europe more power over the country's economy......

Are women their own worst enemy?
Are women to blame for not getting top jobs?.....

RFID technology thwarts bird's nest counterfeiters
The radio technology ensuring genuine nest soup.....

Investment charges: Will they become clearer?
Are investors given enough information?.....

Africans eye Chinese enterprise
African entrepreneurs open factories in China.....

Asia's wealthy fuel museum boom
Asia's wealthy initiate museum boom.....

Opera may hit right note for Facebook
May 29 - Facebook is under pressure to make money from mobile devices and that may have it tuning into Norway's Opera Software as the newly public company puts together a revenue building strategy. Bobbi Rebell reports......

Struggle not over for housing
May 29 - U.S. home prices crept higher in March but a full-fledged recovery is still absent, according to Yale professor Robert Shiller, co-founder of the S&P/Case-Shiller index. Conway G. Gittens reports......

U.S. Day Ahead: Shareholders could tell big oil to frack off
May 29 - Pressure mounts on Exxon and Chevron to come clean on fracking, we could get more reaction to investors defriending Facebook and why Barcelona's airport is getting trashed......

Saft Says: Facebook an act of cynicism across the board
Columnist James Saft says no one really has faith in Facebook's valuation which will need revenues of 50% per year for five years to be an expensive stock......

U.S. Home prices head higher for 2nd month in a row
May 29 - Robert Shiller, Yale economics professor and co-creator of the Case-Shiller Index, says the latest report shows housing prices may be breaking out, but previous break-outs have fizzled......

Wealth Strategies: Facebook should be a $50 bln company
May 29 - Wells Fargo's Walter Price says a fair valuation for Facebook would be $50 billion and that he wouldn't consider buying shares unless they fell below $20......

Abby Joseph Cohen: Stocks will lag corporate profits
Companies will churn out profits but worries about Europe and uncertainty surrounding the election will keep a lid on stocks for months. Still, Goldman Sachs Abby Joseph Cohen does see share prices higher a year or so from now......

Trading at Noon: Markets up; Facebook stock takes a dive
May 29 - U.S. stocks are moving higher today but Facebook not following the trend, with shares down close to 5 percent......

Gourmets favor Israel's kibbutz caviar
May 29 - Caviar from sturgeon farmed on an Israeli kibbutz is finding favour with gourmets around the world. Joanna Partridge reports......

Breakingviews: Buffett and insider trading
May 29 - The Sage of Omaha looms over Rajat Guptas trial and over last years David Sokol affair. Richard Beales and Breakingviews columnists explore the connections......

Europe Day Ahead: No relief from euro zone bank worries
May 29 - The euro zone's ailing lenders stay firmly in the spotlight as Greek banks prepare to report earnings and Spain looks set to issue new debt to fund its own struggling banks......

Spain's markets plan to fund banks
May.29 - Spain is to issue new bonds to fund its ailing banks and indebted regions despite borrowing costs nearing the unsustainable 7 percent level. Ciara Sutton reports......

3XSQ: Facebook could buy Opera Software; Spain struggles
May 29 - Facebook may compete with Google to buy Opera Software for over $1 billion, and Spain will soon issue new bonds to fund its ailing banks......

Nigeria oil theft crack-down
May 29 - While the Nigerian government tries to push through legislation to attract foreign oil investors, the army is carrying out raids to stamp out the illicit aspect of the trade but the country has little hope of ending corruption. Joanne Nichol.....

Market Pulse: "Money don't lie" - a worry for the euro
May 29 - From Spain's banks to Italy's debt pile, there's precious little good news for the euro out there. But when everyone is so bearish, how low can it go?.....

Bulgaria pockets Greek jeans maker
May 29 - Hundreds of small Greek entrepreneurs, pushed to the wall by rising taxes, fees and uncertainty at home are looking north to Bulgaria to transfer their companies and benefit from its favorable tax rates, cheap rent and labor. Ethan Bilby rep.....

Breakingviews: Europe's lenders make fools of savers
Breakingviews......

Samsung vs Apple: The Galaxy strikes back
Insider's Julian Satterthwaite asks Cnet.co.uk editor Jason Jenkins whether it's enough to take the initiative from arch rival Apple......

Reuters Today: Spanish debt costs spiral
May 29 - Spain's 10-year borrowing costs near danger level, firms plan for Greek unrest and Samsung steals a march on Apple with its new Galaxy......

Direct yuan-yen trade from June
May 29 - Japan and China will start trading their currencies directly in Tokyo and Shanghai from June 1 to shore up trade and financial ties between Asia's two biggest economies......

Indian Inc: we haven't missed the Myanmar bus
May 29 -Indian business leaders say Myanmar is only just starting to open up, and Indian firms are poised to help and gain......

U.S. Morning Call: Facebook eyes Opera; DOJ probes BP
May 29 - Analysts say it would take Facebook over $1 billion to buy Opera Software, and the U.S. Justice Dept. is investigating whether BP execs lied to Congress, the WSJ reports......

Europe Day Ahead: Italy re-tests bond appetite
May 28 - Growing support for Greece's pro-bailout parties offers some cheer to investors. Italian borrowing costs reach a two-year high with more bond sales due this week......

Sex trade in Greece cools off
May 28 - Of 400 sex shops in Athens, there are now only 100 left and a hike in VAT on their wares has left the industry floundering. Joanne Nicholson reports......

Bankia shares plunge on bailout woes
May 28 - Spanish debt yields jumped and shares in fourth-largest lender Bankia SA plunge to record lows, highlighting a lack of confidence in government efforts to stabilise the finances of Spain and its ailing banks. Ciara Sutton reports......

Benefits spending blows out by 9bn
Benefit spending will be 9bn higher than planned because of Coalition's failure to get people off welfare, research suggests.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fd26217/mf.gif' border='0'/><br/.....

Facebook crashes below $30 in 'worst IPO in a decade'
Shares in Facebook have dropped below the $30 mark, capping what has been hailed as the most disastrous start to trading of any major flotation in the last decade.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1.....

HGS investor sues to stop 'poison pill'
A shareholder in Human Genome Sciences has filed a lawsuit against the biotech business in a bid to block the "poison pill" employed to fend off GlaxoSmithKline's hostile takeover offer.<img width='1' height='1' src='http://telegraph.feedsportal.c.....

Draft EU bank resolution law: main points
The European Commission is due to propose a draft law on June 6 to give supervisors across the European Union common tools to deal with troubled banks and keep taxpayers off the hook, according to reports. Here are the main points.<img width='1' h.....

BP's Russian oil venture frozen by doubt after resignation of TNK-BP chief Mikhail Fridman
When BP's chief executive, Bob Dudley, unveiled its Arctic exploration deal with Russia's Rosneft in January last year, he heralded it as "a new template for how business can be done in our industry".<img width='1' height='1' src='http://telegraph.....

Spanish data underscore dangerous economic slide
Spanish retail sales plunged a record 9.8pc last month underscoring a dangerous economic slide that could derail Madrid's efforts to shore-up its banks and struggling regions.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/.....

Trust sells 28pc stake in Moss Bros
More than a quarter of Moss Bros's shares - a stake once owned by Sir Philip Green - changed hands on Tuesday, landing the seller with a 4m profit.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fd25532/mf.gif' .....

Increasing 'crisis of confidence' in the EU
Germany is the European Union's only major nation that still believes political integration has helped its economy amid "a full-blown crisis of confidence" across the region, opinion surveys have found.<img width='1' height='1' src='http://telegra.....

French deluge fails to dampen Wolseley confidence
British building services giant Wolseley has pledged to stick with its European business despite seeing profits dented by the region's troubles.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fd1c492/mf.gif' bor.....

Pay revolt follows board bust-up at Lonrho
Lonrho has been hit by a pay revolt a day after Sir Richard Needham quit the board following a row over corporate governance at the Africa-focused group.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fd1c0c4/mf.....

Retail sales recovering, CBI says
Retailers have started recruiting for the first time in almost a decade as the high street gears up for a busy summer, according to the CBI.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fd1c0c5/mf.gif' border=.....

QE prospects dwindle
The chances of the Bank of England launching another round of quantitative easing next week have retreated after two policymakers suggested the UK's monetary stance is already loose enough.<img width='1' height='1' src='http://telegraph.feedsporta.....

Christine Lagarde attack on Greece backfires as she pays no tax
Christine Lagarde, the International Monetary Fund managing director who provoked an angry reaction from the Greek people after telling them to pay their taxes, does not pay tax on her own salary, it has emerged.<img width='1' height='1' src='http.....

Barclays calls off sale of French and Italian arms
Barclays has decided against the sale of its businesses in France and Italy ending speculation the British bank could offload large parts of its European retail operations.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/5.....

China should not be allowed to buy the LME
For 135 years, the London Metal Exchange has been at the heart of world industry, setting prices for metals from aluminium to zinc.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fd1b452/mf.gif' border='0'/>&.....

FSA fines hedge fund chief 3m who hid losses
A hedge fund boss has been fined a record 3m by the City regulator for hiding huge losses at his company from investors.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fd1b453/mf.gif' border='0'/><br/>&.....

Debt crisis: as it happened - May 29, 2012
Economy Ministry says government will approve issuing of joint bonds by regional governments to make it easier for them to raise capital, as Bank of Spain warns that the country's economy will continue to shrink in the second quarter of this year.<.....

Hotel investors hope for transatlantic tie-up
Murmurings that InterContinental Hotels could bunk up with Marriott got investors in the UK hotel group somewhat hot under the collar.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fd113d8/mf.gif' border='0'/&g.....

FSA's record penalties help ease burden of fees
The record fines levied by the Financial Services Authority over the past year have meant the regulator has been able to pass on a larger than expected discount in the fees it charges.<img width='1' height='1' src='http://telegraph.feedsportal.com.....

Questor share tip: Buy Brewin Dolphin for its yield
"It may be a sunny day here in London, but generally speaking it's rather stormy out there," joked Jamie Matheson, executive chairman of Brewin Dolphin, as he reflected on his company's performance during the first half of the year.<img width='1' .....

China prepares to boost economy
China is close to unveiling a fresh package of economic reforms in a move that experts believe will boost its slowing economy and support global growth.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fd113db/mf......

Debt crisis: live
Economy Ministry says government will approve issuing of joint bonds by regional governments to make it easier for them to raise capital, as Bank of Spain warns that the country's economy will continue to shrink in the second quarter of this year.<.....

Europe's debtors must pawn their gold for Eurobond Redemption
Southern Europe's debtor states must pledge their gold reserves and national treasure as collateral under a 2.3 trillion stabilisation plan gaining momentum in Germany.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56830.....

Facebook eyes mobile firm Opera to help it launch its own smartphone
Facebook is trying to buy up mobile phone technology firms and hiring top-flight engineers to help it launch its own smartphone device, it has emerged.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fd0c1dc/mf.g.....

Quercus profits drop as it battles to repeat Girl with the Dragon Tattoo success
Quercus, the publisher behind Stieg Larsson's The Girl with the Dragon Tattoo, more than doubled digital revenues last year but saw profits slip as it battled to come up with another bestseller on the same scale.<img width='1' height='1' src='http.....