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Thursday 21 June 2012

UK Financial News on 2012-06-21

NatWest accounts hit by problems
Many customers with RBS, Natwest and Ulster Bank accounts have been hit by technical problems which hit online services and account balances......

Moody's downgrades 15 major banks
The credit ratings agency Moody's downgrades 15 banks and financial institutions including Barclays, HSBC and Goldman Sachs......

Spain banks need up to 62bn euros
An independent audit of Spain's banks finds that they need up to 62bn euros (50bn) in extra funding......

US shares end with steep falls
Shares on Wall Street close 2% lower after economic reports in the US, Europe and China all point to weakening economies......

Farepak judge partly blames bank
A High Court judge partly blames the "hardball" attitude of the HBOS bank group for the collapse of Farepak in 2006, and says it should return up to 10m to customers......

UK retail sales beat forecasts
UK retail sales volumes rise 1.4% in May, bouncing back from a slump in April, and slightly ahead of analysts' forecasts......

EU rules on workers' annual leave
Workers who fall sick during their annual leave are entitled to take corresponding paid leave at a later date, the EU's top court says......

Property market rebounds in May
Mortgage lending and home sales rebound in May after falling in April, according to new figures......

Severn Trent launches new bond
The water company Severn Trent is raising money by offering an inflation-linked corporate bond to members of the public, rather than to professional investors......

Euro talks on Spain and Greece
Eurozone finance ministers are meeting to discuss a bailout for Spain's banks, and the future of Greece's two rescue packages......

Apple told to pay Samsung damages
A Dutch court has ordered Apple to pay damages to rival Samsung Electronics for infringing a patent held by the South Korean firm......

Dixons Retail 'well-positioned'
Shares in Dixons Retail, which owns Currys and PC World, rise 7.4% after the electrical retailer reported better-than-expected annual results......

German deal on EU fiscal treaty
Chancellor Merkel gets German opposition support for the EU's new treaty on budget discipline and the new bailout fund......

Air France set to cut 5,000 jobs
French airline Air France announces it is to cut more than 5,000 jobs by the end of 2013 in an attempt to reduce costs and return to growth.....

'Two-tier fees' to call companies
Existing customers are being charged to call a string of banks, insurers and energy companies unlike some new customers, a consumer group says......

US economy growth forecast is cut
The US central bank cuts its forecast for economic growth in 2012 and takes further steps to reduce long-term borrowing costs......

Invensys hit by failed bid talks
Shares in UK engineering group Invensys drop nearly 15% after it said it was no longer in talks with US firm Emerson about a possible takeover......

China seeks easier investor rules
China's securities regulator proposes to ease rules for foreign investors, the latest step in its bid to open up the financial market......

Oracle chief buys Hawaiian island
Larry Ellison, the chief executive of technology giant Oracle, is to buy 98% of Lanai, the Hawaiian island, the governor of the Pacific US state said......

FSA chief gives bonus to charity
The chief of the UK's financial regulator, Hector Sants, has donated his 143,750 bonus to a charity supported by the Duchess of Cambridge......

Anger at Farepak High Court move
A victim of the collapse of hamper firm Farepak tells the BBC she is "absolutely raging" that a legal challenge against its former bosses has been abandoned......

Jimmy Carr: My terrible error
Comedian Jimmy Carr says he has made a "terrible error of judgement" over using a tax avoidance scheme and has pulled out of it......

European pension plan 'pointless'
The government says it will keep on fighting a European scheme to strengthen the finances of company pension schemes......

Cable forces binding pay votes
The business secretary announces plans to force companies to have binding votes on executive pay every three years, but resists pressure for annual votes......

UK unemployment falls by 51,000
Unemployment in the UK fell by 51,000 to 2.61 million in the three months to April, official figures show......

Bank support for extra stimulus
Four members of the Bank of England's policy setting Monetary Policy Committee - just short of a majority - support pumping extra money into the economy......

Sharp decline in profits at Kesa
Profits at European electrical goods retailer Kesa almost halved in the 2011-12 financial year, the group says, as it announces plans to rebrand the group Darty......

P&G issues second profits warning
Procter and Gamble, the maker of Pampers nappies and Duracell batteries, has cut its sales and profit forecasts for the second time in two months......

Murdoch in $2bn CMH takeover bid
Rupert Murdoch's News Limited makes a $2bn bid for James Packer's Consolidated Media Holdings, a move which would strengthen his pay-TV holdings in Australia......

First major sponsor backs 2014
The first major sponsor for the 2014 Commonwealth Games in Glasgow has been revealed as Swiss company Longines......

Fresh offer expected for Rangers
Two Glasgow property developers prepare a bid in the region of 11m to take control of Rangers......

Ukraine expels Olympic official
A senior Ukrainian Olympic official filmed by the BBC offering 2012 tickets for cash is expelled by his country's National Olympic Committee......

VIDEO: Spain's bond yields at fresh high
Spain has successfully raised 2.2bn euros (1.7bn) of bonds repayable in two, three and five years at a debt auction where investor demand was strong......

AUDIO: Liberia's entrepreneurial spirit
The Today programme has been taking a close look at Liberia this year to see what sort of future there might be for sub-Saharan Africa. Sarah Montague has been talking to four entrepreneurs who each hope that they can make a difference......

VIDEO: UK retail sales rise in May
Bryan Roberts, from Kantar Retail, says that the annual UK retail sales figures showed "decent growth" and that he was confident it was a sign of things improving......

VIDEO: Greece needs better bailout terms
Bill Rhodes was a Senior Vice Chairman of Citibank. He tells Zeinab Badawi that the European Union should be realistic about the terms of Eurozone member bailouts......

VIDEO: US Fed's new stimulus 'disappoints'
Asia is waking up to another round of monetary stimulus, by the US central bank the Federal Reserve. The Fed will expand its Operation Twist by $267bn......

VIDEO: NatWest problems: 'Not something we're proud of'
Susan Allen from Retail Banking at RBS says the NatWest is "working really hard" to fix the technical problems currently experienced by the bank, but assures customers that their money is safe......

AUDIO: Bank of England 'a lot more proactive'
The Bank of England will hold the first of its new auctions designed to provide UK banks with cheap cash in exchange for assets. John Wraith, fixed income strategist at Bank of America Merrill Lynch Global Research, shares his thoughts on the scheme......

VIDEO: China defends rare earth quotas
China has defended its limit on the amount of rare earth minerals it will export......

Most common tax avoidance schemes
Most common tax avoidance schemes explained.....

Cavendish sprints for cycling success
Cycling ace Mark Cavendish on sport and business.....

Liberia's visionary entrepreneurs
Californian entrepreneur sets up in poverty-stricken Liberia.....

Unsung heroes of the potato industry
Celebrating the unsung heroes of the potato industry.....

Constitutional issues for Merkel
Angela Merkel has good reasons for not giving in to pressure.....

Four steps to getting that job
Four experts give their top tips on how to land that job.....

Hong Kong debates currency peg
Hong Kong debates its currency's peg.....

Obama's economic hill gets steeper
June 21 - With the Federal Reserve forecasting unemployment to stay above 8 percent by years end, U.S. President Barack Obama faces an uphill battle this election but Romney has to convince voters he can do better. Bobbi Rebell reports......

Spain needs 62 bln euro bank rescue -audit
Two independent audits of the Spanish banking system say it could need as much as 62 billion euros to recapitalise, though the euro zone has already set aside 100 billion to deal with it. Joel Flynn reports......

Euro zone activity shrinks again
June 21 - Business activity across the euro zone shrank for the fifth month straight month in June, Chinese manufacturing contracted and US factory growth slowed. Joel Flynn reports.....

Trading at Noon: Markets lower on economic weakness
June 21 - Stocks are plunging after a plethora of disappointing economic data points to a stagnating recovery......

Breakingviews: Chesapeake chairman may not take root
June 21 - Rob Cox and Breakingviews columnists discuss whether Chesapeakes new yet 73-year old chairman Archie Dunham can rein in Aubrey McClendons messy leadership......

Europe Day Ahead: Euro zone big four gather in Rome
June 21 - Europe's new bailout fund is likely to top the agenda as the leaders of Germany, France, Italy and Spain gather in Rome.....

3XSQ: Facebook launch nearly as bad as 2010 flash crash
June 21 - A report from the TABB group says Facebook's launch debacle has shaken investors almost as much as the 2010 Flash Crash......

Spain borrowing costs peak again
June 21 - Spain's medium-term borrowing costs soared to euro-era record levels at an auction, hours before an independent audit was due to reveal how big a capital hole in Spanish banks needs to be filled by a euro zone bailout. Sonia Legg reports......

U.S. Morning Call: Stock futures lower; Apple fined
June 21 - Wall Street is set for a lower open after the Fed's decision to extend Operation Twist, and Apple has been fined $2.3 million by Australian authorities for a misleading ad......

Market Pulse: More pain for Spain in debt auction
June 21 - Spain's interest rates shoot up in a debt auction while Madrid prepares to release another report on its banks. Meanwhile no growth in sight for Europe's big economies, says Markit's Chris Williamson......

Reuters Asks: Will any countries keep their AAA?
asks bond investors, ratings agencies and debt chiefs at the Euromoney Global Borrowers and Investors Forum in London......

Euro 2012: Quarter Final Picks
June 21 - The lineup for the Euro 2012 quarter finals is complete. We assess who the favourites are to secure passage to next week's semi finals......

Breakingviews: Earnings hopes still too high
June 21 - Earnings forecasts are being pared back on euro zone worries, but not enough, says Breakingviews......

Breakingviews: Bankers follow the moneyto China
June 21 - Goldman Sachs is sending Mark Schwartz to Beijing, and others will follow. With China dominating Asia IPOs, the mainland will become the new battleground for foreign banks, says Breakingviews......

Fed won't take its foot off the pedal: Mobius
June 21 - The ramping up of "Operation Twist" means the U.S. Fed is determined to stay on the easing path, possibly even boosting asset purchases later this year, says Templeton's Mark Mobius......

With SIII, Samsung makes smartphone duopoly official
June 21 - Besides Apple, nobody can sell phones like Samsung. With the huge U.S. launch of the Galaxy SIII, it's looking harder than ever for the other guys to catch up. Jon Gordon reports......

Mobius set to plow more money into China
June 21 - Dismal flash PMI data might be the latest indicator of slowing growth in China, but it hasn't dented the country's appeal to emerging markets guru Mark Mobius......

Reuters Today: Fed twists, risk appetite on hold
June 21 - Shares, commodities down after Fed disappoints investors with limited stimulus measures, and China's factory sector contracts again......

Fed twists, but market unwinds rally
June 20 - Summary of business headlines: Fed extends debt swapping program and issues downbeat forecast; Wall St. closes mixed; Corporate leaders downgrade outlook; Procter and Gamble tempers expectations. Conway G. Gittens reports......

Bernanke twists more into economy
June 20 - Federal Reserve Chairman Ben Bernanke extends Operation Twist but says hes ready to do more if the U.S. economic recovery continues to weaken. Conway G. Gittens reports......

Greek coalition takes power, promises to revise bailout
June 20 - A conservative-led government takes power in Greece Wednesday, promising to negotiate softer terms for its international bailout. Deborah Lutterbeck reports......

Great rates, but so what?
June 20 - Consumers and businesses will have access to rock bottom interest rates for years to come- but the Fed's move to extend its so-called Operation Twist to keep rates low could have unintended consequences. Bobbi Rebell reports......

U.S. Day Ahead: 17,000 reasons why Google will battle Apple
June 20 - Expect Google CEO Larry Page to possibly come out swinging at the tech giant's shareholder meeting as Apple tries to bar the sale of phones from its recently bought Motorola unit......

Wealth Strategies: Fed should "shock & awe", not just twist
June 20 - 30-yr. Treasuries rallied after the Fed announced a continuation of "Operation Twist" through the end of the year. Barclays' Michael Pond says the central bank should have done something more dramatic.....

Fed extends economic stimulus
June 20 The Federal Reserve has extended its latest monetary stimulus and sharply downgraded its forecasts for U.S. economic growth, saying it was prepared to take further steps to help the faltering recovery if needed. Heres Federal Reserve Chairma.....

Debt crisis: live
Bank of Spain says indepedent audits of country's ailing lenders' shows capital shortfall will be more than covered by 100bn EU bailout fund as weak global data drags down markets.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/3.....

Moody's slashes credit rating of Britain's biggest banks
Britain's biggest banks, including Barclays, Lloyds and the Royal Bank of Scotland, have had their credit ratings slashed by Moody's as part of a worldwide review of bank credit ratings.<img width='1' height='1' src='http://telegraph.feedsportal.c.....

Tax expert: 'anti-avoidance principle' would beat dodgers forever
Taxation based on an anti-avoidance principle is a permanent answer to beating "tax dodgers" according to Richard Murphy, who says the government's current proposals won't help.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/3272.....

Workmen renting instead of buying builds up Ashtead
Cash-strapped builders who are forced to rent rather than buy tools and equipment have helped hire company Ashtead to record annual profits.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2096fa37/mf.gif' border=.....

Dublin attacks Ryanair's bid for Aer Lingus
The Irish Government has hit out at Ryanair's audacious third bid for Aer Lingus, claiming the offer undervalues the flag carrier.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2096fa39/mf.gif' border='0'/>&l.....

BBC director-general Mark Thompson 'in talks with New York Times'
Mark Thompson, the outgoing BBC director-general, has held talks with the New York Times about becoming its chief executive.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2096f32c/mf.gif' border='0'/><br/&.....

Go-Ahead's Southern franchise may miss growth expectations
Britain's double-dip recession has taken its toll on rail travel in the south of England, according to transport operator Go-Ahead.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2096f32d/mf.gif' border='0'/>&.....

Britain's tax system is the real villain of the Jimmy Carr case
Politicians should simplify our taxes, not lecture others, says Fraser Nelson<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/209715c7/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.....

BP fights for control of TNK-BP
BP has further soured its fractious relationship with its oligarch partners in TNK-BP, sending them a warning letter complaining about their handling of the Russian joint venture.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32.....

IPO rules need overhauling after Facebook float, Congressional committee says
US regulators should overhaul rules governing how companies go public in the wake of Facebook's multi-billion dollar flotation, according to a powerful Congressional committee.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726.....

Xstrata shareholders should not fear losing their costly chief executive
After the outspoken criticism of Fidelity and Standard Life against his pay, Mick Davis has brought the entire membership of the Association of British Insurers down on his head.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/327.....

US data blitz points to slowing economic momentum
Stock markets tumbled on Wall Street as a blitz of data fuelled fears that the world's largest economy is losing momentum.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/209715cd/mf.gif' border='0'/><br/>.....

Debt crisis: desperate Monti needs Merkel summit deal to stop revolt at home
Italy's technocrat government risks a parliamentary mutiny unless premier Mario Monti can secure major concessions from Germany at a crucial summit of the eurozone's Big Four powers in Rome on Friday.<img width='1' height='1' src='http://telegraph.....

The IMF helping the euro is feeding the monster on our doorstep
IMF help would push the eurozone toward fiscal and political union, warns Jeremy Warner<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20969983/mf.gif' border='0'/><br/><br/><a href="http://da.f.....

HBOS took Farepak cash in knowledge company was heading for the brink
HBOS should repay millions of pounds to depositors in the failed Christmas saving company Farepak, after being found to have played "hardball" in the months leading up to its collapse.<img width='1' height='1' src='http://telegraph.feedsportal.com.....

Snub to business as just 4pc of public believe it is a reason to be proud of Britain
Just 4 per cent of people believe business is a reason to proud of Britain, new polling shows.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20968160/mf.gif' border='0'/><br/><br/><a href="http.....

Debt crisis: Spanish borrowing costs soar despite fresh audit putting pressure on eurogroup
Spanish borrowing costs were pushed to record highs piling on pressure for the eurozone finance ministers meeting in Luxembourg to agree a 100bn cash injection into Spanish banks and yet another bailout for Greece.<img width='1' height='1' src='ht.....

Debt crisis: Spain borrowing cost soar despite fresh audit putting pressure on eurogroup
SPANISH borrowing costs were pushed to record highs piling on pressure for the eurozone finance ministers meeting in Luxembourg to agree a 100bn cash injection into Spanish banks and yet another bail-out for Greece.<img width='1' height='1' src='h.....

Starbucks to open first tea only store in Seattle
Tea time is set for a Starbucks-style makeover as the worldwide chain aims to do for the beverage what it has for coffee.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20961164/mf.gif' border='0'/><br/>.....

MPs attack banks over swap mis-selling
A parliamentary debate on interest swap mis-selling saw MPs attack banks, including Barclays, HSBC and RBS, over the way they sold the product to customers<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20961166/.....

$5m court order for Morgan Stanley
Morgan Stanley has been ordered by a US regulator to pay $5m (3.2m) in compensation for allegedly making false promises to two brokers it hired just before the financial crisis.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/3272.....

Melrose may go into FTSE 100 after deal
Melrose was a talking point as the London stockmarket ended its four-session winning streak.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2096116b/mf.gif' border='0'/>.....

Spanish banks need up to 62bn to withstand economic shocks
Spain's embattled banks need a cash injection of up to 62bn in order to help them weather the financial crisis, the country's central bank said on Thursday.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2096116d.....

UK manufacturing sector improves in June, CBI says
Britain's manufacturing sector received a boost in June as order books improved and companies expected output to increase in the short-term.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20962dc0/mf.gif' border=.....

Xstrata's 173m bonus payments branded 'excessive' by ABI
Xstrata's lavish 173m bonus pay-out to management has been roundly condemned by the Association of British Insurers for being excessive and a breach of best practice.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/.....