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Thursday 7 June 2012

UK Financial News on 2012-06-07

Howard warns politicians as hedge funds feel regulatory heat
Europe's number one hedge fund manager, who rarely makes public speeches, urges policymakers to realise the crucial role his industry has to play in fostering an economic recovery.....

BTG Pactual partners pile on the profits
Fresh from making millions from its IPO, the Brazilian bank's 168 partners are now benefiting from its hedge fund performance.....

Dealers braced for second tech bubble burst
US tech companies are pulling floats at a rate not seen since the dotcom bubble.....

Banks ready a new wave of redundancies
Four of the world's largest investment banks have either launched or are preparing a new wave of job cuts, according to market sources.....

Spain downgraded on bailout fears
Spain's credit rating has been downgraded as estimates on the size of the bailout it needs begin to mount up......

China cuts rates as growth slows
The Chinese central bank cuts its key interest rates for the first time since 2008, in an attempt to boost slowing economic growth......

Clinton Cards sold to US company
The remaining 397 Clinton Cards stores have been sold to a US greeting card company, saving 4,500 jobs, administrators Zolfo Cooper say......

Lotus owners sack chief executive
Car-maker Lotus sacks its chief executive Dany Bahar with immediate effect......

Rate freeze means pain for savers
The Bank of England has frozen UK interest rates at 0.5%, prompting pain for savers whose funds are losing pace with the rising cost of living......

US Fed 'ready to act' on economy
The chairman of the US Federal Reserve, Ben Bernanke, said he is monitoring risks to the economy and is prepared to take action if necessary......

Mobile giants join forces over 4G
Mobile phone giants Vodafone and Telefonica announce plans to create one shared grid in the UK to speed up the roll-out of superfast 4G services......

No change to UK rates or stimulus
The Bank of England once again leaves UK interest rates unchanged at 0.5% and announces no increase in quantitative easing......

Cyprus seeks cover for UK savers
Some 50,000 UK savers with the Bank of Cyprus are closer to receiving protection for their savings under a UK scheme......

UK house prices 'will flatline'
UK house prices will end the year at the same level as now owing to tough economic conditions, the Halifax predicts......

Scams hit worried LinkedIn users
LinkedIn users have been targeted by email scams following a hack which saw over six million of its users' passwords leaked online......

China 'cuts European investments'
China's massive sovereign wealth fund has cut its European stock and bond investments on fears of a eurozone break-up, a newspaper report suggests......

Sellafield Thorp site to close
Sellafield's Thermal Oxide Reprocessing Plant in Cumbria is to close in 2018, the Nuclear Decommissioning Authority confirms......

HTC shares slide on sales warning
Shares of Taiwan's HTC fall 7% on the Taiwan Stock Exchange after the firm lowered its sales and profit forecast for the second quarter......

Bean shortage hits Halliburton
Halliburton warns a shortage of guar beans, used in the fracking process, will hit its profit margins more than had been expected......

Network Rail profits and debts up
Network Rail, which maintains Britain's rail track and signalling system, announces a rise in both its profits and debts but expects to cut more jobs......

Google shows new maps technology
Google has demonstrated new mapping technologies in an effort to reassert its position as a market leader amid reports of fresh defections......

Argentina's leader drops dollars
Argentine President Cristina Fernandez, battling capital flight and high inflation, urges officials to follow her and switch saving in dollars to pesos......

Osborne: Charity tax was wrong
Chancellor George Osborne tells the BBC that the government "got it wrong" on its proposed changes to taxation on charitable giving in the Budget......

Water meter call over shortages
Water meters that charge for using extra supplies on cars and gardens are needed to avoid shortages, experts say......

Low rates 'help young homeowners'
Low interest rates are easing the debt concerns of young homeowners but there is a danger of complacency, a charity suggests......

Malawi set to get large IMF loan
The IMF says it will lend $157m to Malawi to help its ailing economy, after new President Joyce Banda bows to reforms her predecessor rejected......

US economy picking up - survey
The US central bank said its regular Beige Book survey of the economy showed growth increased over the past two months......

ECB: Rising risks to euro economy
European Central Bank president Mario Draghi says risks to the eurozone economy have grown, but says it is up to governments to act, not the ECB......

Chelsea loses bid for Battersea
Chelsea FC says it is disappointed after a Malaysian company is chosen as the preferred bidder for Battersea Power Station......

Facebook investors offered rebate
Facebook shareholders are offered $40m by the Nasdaq stock exchange for a hitch that stopped them trading on debut day......

Scotch whisky firm to invest 1bn
Drinks giant Diageo is to invest 1bn in Scotch whisky production over the next five years to meet growing global demand......

VIDEO: Interest rates left unchanged
The Bank of England has once again left UK interest rates unchanged at a 0.5%......

VIDEO: Cameron says eurozone action needed
The Prime Minister, David Cameron, has arrived in Berlin for talks with the German Chancellor Angela Merkel about the eurozone crisis......

AUDIO: 'Remorseless logic' for EU fiscal union
Chancellor George Osborne speaks to Evan Davis on the eurozone crisis and its impact on the UK.....

VIDEO: Spain plans bond sale
Spain will try to raise money on credit markets today after initially saying it was all but blocked from them......

AUDIO: Network Rail sees profits rise
Patrick Butcher from Network Rail tells BBC Radio 5 live's Mickey Clarke how it managed to increase its pre-tax profits......

AUDIO: Did retailers have a diamond time?
Retail consultant Rahul Sharma gave Radio 5 live Wake Up to Money his analysis of the footfall figures for May......

VIDEO: Luxury goods sales booming in China
The ultra rich are driving sales of luxury brands in China, but the emerging middle class will also become a key market......

VIDEO: British beef back on UAE menu
After a 12-year import ban owing to the BSE scare, in the past week it has been confirmed that both British and French beef are back on the menu in the Gulf......

US school selling places overseas
US high schools look overseas to fill empty classrooms.....

Research gives India its big boost
The global companies choosing India for their innovation centres.....

What does it take to run the US's oldest family firm?
The cymbal-maker that's still going strong after 389 years.....

South America sees new gold rush
South America sees rise in legal and illegal mining.....

Ancient Greek solution for debt crisis
How the Ancient Greeks would solve the financial crisis.....

Ailing Wall St. banks far from DOA.
June 7 - Business may be bad on Wall Street, with reports of pink slips growing, but that doesn't necessarily mean an imminent Lehman-type meltdown. Bobbi Rebell reports......

Wealth Strategies: Upside to brent crude, nat gas prices
June 7 - JPMorgan commodity strategist Colin Fenton says the spike in commodity prices Thursday was a knee-jerk reaction to China's rate cut, but thinks there is upside to brent crude and natural gas prices......

LIGHTNING ROUND: Fed stimulus will inflate commodity prices
June 7 - JPMorgan's Colin Fenton says the Fed will likely add stimulus to help spur U.S. and global economic growth, giving a tailwind to commodity prices, and says to go long natural gas......

Cameron and Merkel still divided in call for action
June 7 - German Chancellor Merkel and British Prime Minister David Cameron still appear to be sitting in different corners, even as both call for more integration within the euro zone and for urgent action in the current crisis. Joel Flynn reports......

Breakingviews: Nasdaq burned again by Facebook
June 7 - Jeffrey Goldfarb and Antony Currie talk about how Nasdaq chief Bob Greifelds attempt to resolve the Facebook IPO mess only reignited anger directed at the exchange......

Trading at Noon: Bernanke disappoints Wall Street
June 7 - The stock rally loses steam after Federal Reserve Chairman Ben Bernanke tempers expectations for further stimulus......

Greek tourism expected to nosedive
June 7 - Greek tourism could drop up to 15 percent this year amid political uncertainty in the country, according to the Greek Tourism Enterprises Association. Andrew Potter reports......

IMF weighs Spanish bank backstop bill
June 7 - Markets wait for word from Washington as the IMF weighs up just how much cash Spain needs to backstop its banks......

3XSQ: Stimulus, possible stimulus, no stimulus
June 7 - China cuts rates as Fed Chair Bernanke gets ready to testify about the economy and Bank of England holds rates steady......

No Lehman-type impact of Grexit - Riksbank Governor
June 7 - greece leaving the euro will not trigger the kind of crisis and contagion seen after Lehman, as markets have learned that lesson, says Riksbank governor Stefan Ingves......

Nokia's budget touchscreen phones
June 7 - Struggling mobile phone maker Nokia has unveiled its first full touchscreen phones which are aimed at the budget end of the market, looking to fill a gap in its product range and catch up with rivals. Hayley Platt reports......

Market Pulse: China's rate cut boosts euro, stocks
June 7 - The timing of the action was unexpected and provided a boost to the Aussie dollar, sterling and European stocks. The Bank of England, in contrast, kept its monetary policy unchanged......

1 in 3 chance of U.S. recession -Feldstein
June 7 - The chances of the U.S. falling back into recession are rising and more stimulus from the Fed won't do much good either, says Harvard economist Marty Feldstein......

Breakingviews: Germany could live with eurobills...just
June 7 - Pooling together short-term debt could help weak countries, without incurring the risk of moral hazard, says Breakingviews......

Asia's gas-powered new dawn
June 7 - Hear from Charif Souki, CEO of Cheniere Energy, one of the companies laying the groundwork for a boom in cheap U.S. LNG exports to Asia......

Reuters Today: Crunch day for Spain
June 7 - Spain will try to raise between one and two billion euros in bonds, a crucial test of Madrid's ability to tap the capital markets......

Witness: The trouble with India's economy
South Asia bureau chief John Chalmers......

Funeral director industry surges in China
June 7 - In China, young undertakers are giving new life to the art of preparing the dead. Julie Noce reports......

Oreo overhaul hits China consumers' sweet spot
June 7 - Journey inside Kraft's China Oreo kitchen, where some unusual twists are being added to the classic cookie to tempt the palates, and wallets, of Chinese customers......

U.S. Morning Call: Stock futures up; Twitter's ad dollars
June 7 - U.S. stock index futures are flat to higher today, and Twitter says it has generated more ad revenue from its mobile platform than from its website in the last quarter......

Spain's relief on strong bond sale demand
June 7 - Spain saw strong demand when it sold 2.1 billion euros of medium and long-term debt, passing an important test of whether it can still attract investors, just days after a Spanish minister said the country was being cut off from the markets......

Raging bull, but for how long?
June 6 - Wall Street enjoys its best day of 2012 as optimistic investors bet the European debt crisis has worsened enough to prompt euro zone governments to come up with a meaningful rescue plan, but recent history shows that optimism can quickly tur.....

Nasdaq Facebook settlement backlash
June 6 - Nasdaq's controversial Facebook IPO settlement offer falls way short of losses and has victims and the competition crying foul. Bobbi Rebell reports......

U.S. Day Ahead: Markets look to Bernanke
June 6 - Investors await a word from Federal Reserve Chairman Ben Bernanke, who speaks before a congressional committee tomorrow......

Trading at Noon: U.S. stocks surge on Spain rescue option
June 6 - Wall Street gained on news about ECB coming to the rescue of Spanish banks......

Johnson Matthey - a UK success story helped by a reduced tax rate
Johnson Matthey supplies the most bitter substance known to man - no, not the bile of Gordon Brown but a compound called Bitrex.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20204441/mf.gif' border='0'/><.....

J Sainsbury and M&S chiefs see cuts in bonuses
Two of Britain's leading store chiefs, Justin King, of J Sainsbury, and Marks & Spencer's Marc Bolland, saw their bonus cut, in another sign that the high street has had a tough year.<img width='1' height='1' src='http://telegraph.feedsportal......

Tour firm tycoon Phil Wyatt to face 4m legal action
Travel tycoon, Phil Wyatt, who wept on national television when his former company XL Leisure collapsed, is now facing a 4m legal action over his involvement with another failed tour operator, the Turkish-owned Goldtrail.<img width='1' height='1' .....

Spain too big for EU rescue fund as China recoils
As Spain edges closer to a full sovereign rescue, economists have begun to doubt whether the EU bail-out machinery can raise such large sums funds at viable cost on global capital markets.<img width='1' height='1' src='http://telegraph.feedsportal.....

Johnson Matthey driving towards UK success story
A drive to cut vehicle emissions has propelled a sharp rise in profits for industrial group Johnson Matthey, the world's biggest producer of catalytic converters.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20.....

Debt crisis: as it happened June 7, 2012
Spain moves closer to the credit junk pile as Fitch slashes the country's rating by three notches and warns the likely cost of restructuring and recapitalising the Spanish banking sector could reach 100bn.<img width='1' height='1' src='http://tele.....

Debt crisis: live
Spain moves closer to the credit junk pile as Fitch slashes the country's rating by three notches and warns the likely cost of restructuring and recapitalising the Spanish banking sector could reach 100bn.<img width='1' height='1' src='http://tele.....

US group 'biased' against British business
WPP has hit back at the US shareholder group that criticised the 6.8m pay package handed to its chief executive, Sir Martin Sorrell, slamming its stance as "inconsistent" and "parochial".<img width='1' height='1' src='http://telegraph.feedsportal......

WPP pay chief says US shareholder group is 'biased' against British business
WPP has hit back at the US shareholder group that criticised the 6.8m pay package handed to its chief executive, Sir Martin Sorrell, slamming its stance as "inconsistent" and "parochial".<img width='1' height='1' src='http://telegraph.feedsportal......

Debt crisis: Fitch downgrades Spain by three notches and blames European leaders for 'absence of a credible vision' for euro
A serious mishandling of the debt crisis by European leaders led Fitch to axe Spain's credit rating by three notches and issue a warnings on the stability of country's banks, debt levels and economy.<img width='1' height='1' src='http://telegraph......

Best Buy founder leaves company following scandal
Best Buy founder Richard Schulze has revealed he is considering "all available options" for his 20.1pc stake in the group after standing down as chairman and a director of the electronics retailer.<img width='1' height='1' src='http://telegraph.fe.....

M&S set to launch bank to take on high street lenders
Marks & Spencer is to open its first bank branch, making current accounts available alongside sandwiches, socks and cashmere sweaters.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/201fec96/mf.gif' border='0.....

British banks among the most unprofitable in the world
The British banking industry was the second most unprofitable in the world in 2011, according to an analysis of lenders in major economies.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/201fec98/mf.gif' border='.....

China surprises with interest rate cut
China surprised markets by cutting interest rates as it battles a slowing economy and fears that the eurozone crisis will weigh heavily on a global recovery.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/201cc12.....

Bullish broker checks out Burberry's rise
Sashaying ahead on Thursday was Burberry, which was in vogue as City scribblers turned buyers of the fashion house famous for its camel check and trench coats.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/201f5.....

Debt crisis: demand for gilts and bunds soar in May
Trading volumes in German and UK debt jumped by record amounts last month as sovereign bond investors sought safe haven shelters from the advancing debt crisis.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/201f.....

Debt crisis: Demand for gilts and bunds soar in May
TRADING volumes in German and UK debt jumped by record amounts last month as sovereign bond investors sought safe haven shelters from the advancing debt crisis.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/201e.....

Ben Bernanke says Fed ready to act if crisis intensifies
The US central bank is prepared to take action if the "significant risks" posed by the eurozone crisis threaten the country's recovery, Federal Reserve chairman Ben Bernanke said.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32.....

The top five NS&I Premium Bond myths busted
National Savings is eager to dispel the myths of why some Premium Bond holders win and others do not.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/201e4342/mf.gif' border='0'/>.....

Norway's Statoil announces 300 new UK jobs
Norwegian energy giant Statoil revealed plans to create 300 new jobs in the UK as David Cameron cemented a new energy partnership between the UK and Norway.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/201dbbaf.....

France's cut to retirement age worries business
Businesses and economists have condemned the new French government's decision to cut the retirement age from 62 to 60 for hundreds of thousands of workers.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/201c9e1a/.....

Bank of England holds rates and leaves QE unchanged
The Bank of England has held interest rates at 0.5pc and left quantitative easing unchanged at 325bn despite mounting speculation that it would take steps to stimulate growth this month.<img width='1' height='1' src='http://telegraph.feedsportal.c.....

Greek unemployment hits record while French jobless rate reaches 10pc
Eurozone unemployment marched higher on Thursday as Greek joblessness reached a new record and France's jobless rate hit the psychologically damaging 10pc mark.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/201c.....

Network Rail debt rises to 27bn as profits double
Network Rail increased its profits 7.5pc in the year to the end of March, but saw debt soar by 2.2bn owing to major projects such as London Thameslink.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/201c9e1c/mf.g.....

Network rail debt rises to 27bn as profits double
Network Rail, the owner of Britain's tracks, signals and stations, reported a near-10pc increase in net debt to 27.3bn last year as profits more than doubled.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/201c1b.....