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Thursday 31 May 2012

UK Financial News on 2012-05-31

Car insurance market faces probe
The car insurance industry is set to be scrutinised by the Competition Commission, after the Office of Fair Trading calls the sector "dysfunctional"......

Xstrata boss offered 29m to stay
The head of Anglo-Swiss mining firm Xstrata is offered almost 29m to stay on as boss once its merger with Glencore is completed......

Spain denies IMF bailout rumours
Spain's economy minister dismisses talk of it seeking a bailout from the International Monetary Fund as "senseless"......

Premier League wages at new highs
The proportion of income that top flight football clubs in England are spending on wages has hit a new high, says Deloitte......

US GDP growth slower than thought
The US economy grew at an annualised pace of 1.9% in the first three months of this year, weaker than the 2.2% first thought......

U-turn over charity tax cap plan
Chancellor George Osborne drops plans to limit tax relief on charitable donations after protests from charities - the latest in a series of Budget U-turns......

Text to Murdoch defended by Hunt
Jeremy Hunt sent a "congrats" text to News Corp's James Murdoch hours before the minister was asked to oversee its BSkyB bid, the Leveson Inquiry hears......

O2 porn pirates to get letters
Thousands of internet users suspected of sharing Ben Dover's films are to receive letters seeking compensation after a High Court hearing......

Logica agrees to be bought by CGI
Computer services company Logica agrees to be bought by Canadian rival CGI Group for 1.7bn......

Birmingham accounts delayed again
The holding company of Championship football club Birmingham City delays the publication of its financial accounts again......

Investment forecasts to be cut
Financial services companies that sell investment policies to the public will have to use lower and more realistic projections of possible future returns......

Chevrolet to sponsor Man United
General Motors signs a deal with Manchester United that will see the carmaker's Chevrolet brand become the football club's car sponsor......

Big rise in losses at Thomas Cook
Thomas Cook sees its half-year losses increase sharply after a "difficult" six months, but says it is taking "decisive action" to improve its position......

Council pension deal is outlined
A deal to settle the local government pension dispute has been proposed by both employers and trade unions in England and Wales......

BAE Systems plans to cut 620 jobs
BAE Systems is planning to axe more than 600 jobs and close its factory in Newcastle where tanks were made for World War I......

Ireland votes on EU fiscal pact
People in the Republic of Ireland vote in the eurozone's only referendum on the EU fiscal pact, which limits budget deficits......

Cars roar ahead in Queen's reign
BBC transport correspondent Richard Westcott looks at how motoring has changed throughout the Queen's 60 year-reign......

House prices stable, says lender
House prices in the UK are still "fairly stable" despite the economy falling back into recession earlier this year, the Nationwide says......

Credit card loans shrink in April
Credit card lending in April recorded its biggest monthly contraction since August 2006, figures show, indicating further evidence of consumer caution......

Contactless pay limit goes to 20
The limit on purchases made using wave-and-go card technology rises to 20 on Friday, as the Post Office says it will install the readers in branches......

Indias growth rate slows to 5.3%
The Indian economy records its worst performance since 2003 on the back of a widening trade gap and poor investment......

Japan output weaker than expected
Japan's factory output is weaker than expected in April because of slower demand for electronics goods, according to official figures......

'No countries ready to join euro'
The European Central Bank says that none of the eight countries that are supposed to join the euro are ready yet......

B&Q blames rain for fall in sales
B&Q owner Kingfisher blames April's wet weather for a fall in quarterly sales......

Fall in Halfords' annual profits
Shares in Halfords fall 10% after it reports a 27% fall in profits and says recent trading has been "very disappointing"......

Orange unveils Intel-based mobile
Europe's first smartphone based on the US chipmaker's technology is to go on sale in the UK and France in June......

Gers hand over contract documents
Lawyers investigating allegations that Rangers used dual contracts to pay players receive documents from the club, BBC Scotland learns......

Ukraine 'should host Euro 2012'
The daughter of jailed Ukraine ex-PM Yulia Tymoshenko says Kiev should host Euro 2012 football as planned, despite allegations of political repression......

SPL approve new financial rules
Scottish Premier League clubs will decide whether 'newco' clubs should be admitted to the top flight......

AUDIO: Does the UK need an economic Plan C?
The Royal Society of the Arts has asked a number of experts to look at how the UK might cope with long term very slow growth. Economist Vicky Pryce and Nick Seddon of the think tank Reform debate the issue......

VIDEO: Krugman: Greece will leave the euro
Sarah Montague talks to Nobel Prize winning economist Paul Krugman who says "Greece must and will leave the Euro"......

VIDEO: Markets unsettled by Spain fears
Concerns over Spain's financial situation have sparked losses for shares across Europe and the United States......

VIDEO: Most complained-about adverts
The Advertising Standards Authority's Guy Parker tells BBC Breakfast how his organisation deals with the most complained-about adverts......

AUDIO: How to keep cool in the office
A new report suggests ways for workers to stay cool while at work as the UK faces summer of heatwaves......

AUDIO: 'You can't solve debt with more debt'
The American Nobel prize-winning economist Paul Krugman was at the LSE last night attacking in a lecture the British government for its austerity policy. Evan Davis speaks to one of his opponents, the historian Niall Ferguson......

AUDIO: ECB declines Spain bank bailout
Radio 5 live asked a Spanish economics professor if he expected the ECB to turn down Spain's request for a bank bailout......

VIDEO: 'Sleepy pilots' fear over EU hours plan
European proposals to change the number of hours worked by airline pilots are weaker than current UK regulations and could put passengers at risk, MPs have warned......

Asia's economies face health risk
People and economies gain from good healthcare.....

A tale of 2m properties for sale
The country house worth less than a one-bedroom flat.....

Scooter ignore major labels to break records
The German dance act that became an industry.....

Footwear firm gave counterfeiters the boot
One footwear firm and its battle against counterfeiters.....

World attention shifts to East Asia
World attention shifts to East Asia amid global slowdown.....

U.S. Day Ahead: U.S. jobs market likely picked up steam
correspondent Jason Lange says there might be a positive suprise in the job numbers on Friday......

Miners clash with police in Spain
May 31- Miners clash with Spanish police in Madrid at the end of a march by thousands of demonstrators protesting against cuts to state subsidies for the coal sector. Rough Cut (no reporter narration)......

SpaceX Dragon capsule completes historic flight with Pacific splashdown
May 31 - The SpaceX Dragon capsule splashes down in the Pacific Ocean, completing the first flight by a commercial spaceship to the International Space Station. Rough Cut (no reporter narration)......

Trading at Noon: Wall Street slides, Facebook follows
May 31 - Shares of social media giant Facebook have plummeted since its IPO earlier this month......

Europe officials urge action over euro
May 31 - The ECB's President and EU economy commissioner warn of collapse of the currency unless the Euro zone countries go the next step towards fiscal unity. Joanne Nicholson reports.....

Breakingviews: Dealing with the Moodys blues
May 31 - Breakingviews editors discuss how Morgan Stanley can cope with the pain of a ratings downgrade......

Europe Day Ahead: Friday
May 31 - A look ahead to Friday's key events including U.S. non-farm payrolls, plus EZ and UK manufacturing PMI data.....

3XSQ: Aftershocks of Facebook flop
May 31 - Morgan Stanley reportedly to seek money from Nasdaq over botched IPO, while Kayak delays its offering because of Facebook troubles......

Wealth Strategies: BMC Software likely to sell itself
May 31 - BMC has so far dismissed calls by hedge fund Elliott Management to sell itself, but Tullett Prebon says the activist investor might be able to force its hand......

Puma boss: Usain Bolt to accelerate sales
May 31 - Puma Boss, Franz Koch, talks about the sports brand's sponsorship deal with Usain Bolt and how the Olympics will boost the company's bottomline......

Euro 2012 just around the corner
May 31 - As Poland and Ukraine prepare to host Euro 2012 we assess the likely winner and who'll be the stars of the show. Plus the French Open tennis continues and its Derby day in horse racing......

U.S. Morning Call: Facebook fallout - - other IPO's suffer
May 31 - Travel website Kayak is having second thoughts about going public after seeing Facebook's flop debut......

Reuters on the Road: Ladies-only at Luluvise
May 31 - Luluvise founder Alexandra Chong takes the taxi challenge to talk about her social network dedicated to young women......

Market Pulse: Finding pockets of value...they're out there
May 31 - Even after May's heavy selling there's no reason to be optimistic on euro zone markets, or Spanish assets in particular. But there are pockets of value out there, says CCLA's James Bevan......

Berlin clubs lose their cool as 'techno' scene flags
May 31 - Gentrification, rising rents and a sharp increase in the cost of licensing music are putting the squeeze on Berlin's world famous nightclubs......

Reuters Today: Investors bolt as Spain nears red line
May 31 - U.S. yields sink to 60-year lows as Spain edges closer to a bailout and Ireland holds a high-stakes referendum on the EU fiscal pact......

Reuters Breakingviews: Grizzly week for Graff Diamonds
May 31 - Graff Diamonds pulls its $1 billion Hong Kong IPO. But the jeweler will have another opportunity to make a comeback in the world's largest luxury goods market, says John Foley of Breakingviews......

BlackBerry's imperfect storm
May 31 - Research In Motion is moving forward with a plan to seek partnerships as the BlackBerry-maker warns it is likely to report a shock fiscal first-quarter operating loss. Matt Cowan reports......

Investors shield against Spain crisis
May 31 - Bond yields in Germany reach zero and Austria and France are at record lows since the inception of the common currency, while Spain's borrowing costs remain dangerously high. Joanne Nicholson reports......

Smooth monetary union requires fiscal union: ECB
May 31 - For monetary union to work properly, Europe must move towards greater fiscal union, says ECB's Gonzalez-Paramo. Despite the crisis, the ECB's policy transmission mechanism isn't broken, he adds......

Asian markets head for 12 percent monthly loss
May 31 - Asian stocks markets set to post their biggest monthly loss in eight months, as Spain's surging borrowing costs heighten fears it may need a bailout......

Wall Street's euro headache returns
May 30 - Summary of business headlines: Stocks post biggest decline in two-weeks and the 10-year note yield hits lowest in at least 60 years as Greek polls reignite euro break-up talk; Research in Motion, Facebook shares fall. Conway G. Gittens repor.....

The Exchange: IP-Overhaul
Rob Cox and Business Insider's Henry Blodget discuss how rules in the underwriting process disadvantage investors in IPOs......

U.S. Day Ahead: MS shares could come under fire
May 30 - The Facebook fallout continues for Morgan Stanley, retail could rally after a miserable April and alarm bells are ringing in the jobs market......

Any juice left for BlackBerry brand?
May 30 - The clock is ticking on Research in Motion as it explores its options after hiring bankers to review the business. Two analysts share different views on which direction the BlackBerry maker could go. Bobbi Rebell reports......

Morgan Stanley boss hits back in Facebook float row
Morgan Stanley chief executive James Gorman has hit back at criticism of the bank's leading role in Facebook's $104bn (67bn) flotation, dismissing speculation of "nefarious activity" as false.<img width='1' height='1' src='http://telegraph.feedspo.....

Euro is facing disintegration, Commission warns
Unless European governments do much more to work together, the Euro will disintegrate, the European Commission warns.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fe66687/mf.gif' border='0'/><br/><.....

Nike kicks out Umbro and Cole Haan as buyers sought
Nike is looking for a buyer for Umbro, the maker of the England football kit, in order to focus on its namesake brand as well as its Hurley, Converse and Jordan marques.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/5683.....

British brands enjoy burst of popularity
Chancellor George Osborne might be desperate for a "march of the makers", but Britain's most "valuable" companies are far more likely to be selling mobile phones than manufacturing, research has revealed.<img width='1' height='1' src='http://teleg.....

Break up is trendy but what happens if the euro manages to survive?
Suddenly it's fashionable to believe the eurozone is about to break up. Even six months ago that was thinking the unthinkable. Since when did we swivel-eyed, eurosceptic cranks become trendy?<img width='1' height='1' src='http://telegraph.feedspor.....

Debt crisis: as it happened, May 31, 2012
Spaniards are moving money out of their nation's banks faster than at any point since records began, as Fitch downgrades eight regions and ECB President Mario Draghi warns Europe's leaders must clarify their vision for the euro.<img width='1' heig.....

Ireland's euro treaty vote in balance after low turnout
Ireland's referendum on the EU fiscal pact and eurozone austerity rules, seen as critical for the single currency's future, hung in the balance last night after a low turnout of voters.<img width='1' height='1' src='http://telegraph.feedsportal.co.....

Walmart faces revolt over 'bribes'
Walmart does not expect the corruption allegations that will hang over today's annual shareholder meeting to slow its international expansion plans.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fe5f80f/mf.gif'.....

Debt crisis: live
Spaniards are moving money out of their nation's banks faster than at any point since records began, as Fitch downgrades eight regions and ECB President Mario Draghi warns Europe's leaders must clarify their vision for the euro.<img width='1' heig.....

Eurozone is 'unsustainable' warns Mario Draghi
The head of the European Central Bank hit out at the political paralysis gripping the region as he warned the eurozone's set-up was "unsustainable".<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fe5ecc7/mf.gif'.....

Almost 100bn pulled out of Spain as investors beat a hasty retreat
Almost 100bn (80.2bn) of cash was pulled out of Spain in the first three months of the year by private and corporate investors fleeing the advancing financial and political crisis.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/3.....

Activist investor Nelson Peltz sets his sights on InterContinental Hotels Group
One of America's most notorious activist investors, Nelson Peltz, has become the fifth largest shareholder in InterContinental Hotels Group after buying a 4.27pc stake.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56830.....

Sacked Mirror bosses wanted to buy out Trinity
The editors of the Daily Mirror and the Sunday Mirror were secretly planning to take over their parent company, Trinity Mirror Group, before they were sacked, it can be revealed.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/327.....

FTSE 100 has worst month since February 2009 with 7.5pc fall.
The FTSE 100 has suffered its worst percentage fall over a month since February 2009, the height of the banking crisis.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fe58615/mf.gif' border='0'/>.....

Xstrata CEO in line for 75m as Glencore terms revealed
Xstrata chief Mick Davis is in line for a potential 75m payout as head of the company created from the miner's proposed merger with commodity giant Glencore.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fe5861.....

Xstrata CEO's 75m pay package after Glencore deal revealed
Xstrata chief Mick Davis is in line for a potential 75m payout as head of the company created from the miner's proposed merger with commodity giant Glencore.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fe533f.....

HMV sells Hammersmith Apollo to Stage C
Entertainment venue Hammersmith Apollo, which has been graced by bands from The Beatles to Queen, has been sold by owner HMV to an American-German joint venture.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fe.....

TNK-BP oligarchs eye stake in BP in return for exit from joint venture
The oligarch co-owners of TNK-BP want to swap their holdings in the joint venture for shares in BP, according to Mikhail Fridman, who this week resigned as chief executive of the Anglo-Russian oil producer.<img width='1' height='1' src='http://tel.....

Italy faces a 'year of recession'
Italy is in store for a "year of recession" was the bleak message from the head of the country's central bank, as he warned a 1.5pc economic contraction might be a best-case scenario.<img width='1' height='1' src='http://telegraph.feedsportal.com/.....

Eurozone crisis: investors shelter in the safety of German bonds
The eurozone debt crisis has underscored the gulf between the strong and the weak members of the pack, and nowhere is this more evident than in the bond markets.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fe.....

Facebook's flotation: why the legal grey areas in future IPOs will get bigger
The smell of a freshly baked $104bn (67.2bn pound) pie was always going to reach the nostrils of America's lawyers.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fe43813/mf.gif' border='0'/><br/><br.....

CoCos will not make Britain's banks safer, says Bank of England
Bonds designed to protect banks in the event they get into financial difficulty could cause more problems than they solve, according to the Bank of England.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fe3d4ac.....

US economic growth revised down as jobs data disappoint
Fears that America's economic expansion is losing steam were ignited on Thursday by a blitz of disappointing data.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/1fe39e45/mf.gif' border='0'/><br/><br/.....

Small companies overturn 40pc of loan rejections
Small businesses have had nearly half of rejected applications for bank lending overturned by using an independently monitored appeals process, an official report has revealed.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726.....

Capital flight from Spain hits record $66bn
Spaniards alarmed by the dire state of their banks are squirreling money abroad at the fastest rate since records began, figures showed on Thursday, and the credit ratings of eight regions were cut.<img width='1' height='1' src='http://telegraph.f.....