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Friday 29 June 2012

UK Financial News on 2012-06-29

King calls for new bank culture
Bank of England governor Sir Mervyn King has called for a change in the UK's banking culture, saying customers received "shoddy" treatment......

Merkel defends compromise on euro
Chancellor Merkel defends a deal to use eurozone bailout funds to help banks, a concession to Spain and Italy which sends stocks soaring......

RBS boss Hester not taking bonus
Stephen Hester, chief executive of Royal Bank of Scotland, says he will not take a bonus for this year because of recent IT problems......

Banks guilty of more mis-selling
The Financial Services Authority finds 'serious failings' in the way banks sold specialist insurance known as interest rate swaps to thousands of small firms......

IT failure 'affected thousands'
Some 15,000 customer problems caused by the IT failure at RBS could not be resolved immediately, the bank's chief executive reveals......

Gazprom 'pipeline may reach UK'
Russian gas giant Gazprom may extend its Baltic pipeline to reach the UK, the Associated Press reports......

Private equity firm 3i axes jobs
Private equity firm 3i reduces its global headcount by more than a third in a bid to cut costs and reverse its poor financial performance......

Nestle 'failing' on child labour
Nestle, the world's biggest food company, is accused of failing on child labour checks and abuses......

Postal service is back in profit
Royal Mail reports improved annual profits and says its core postal business is back in profit for the first time in four years......

Madoff brother admits fraud links
The brother of convicted Ponzi scheme swindler Bernard Madoff pleads guilty to charges linked to the multi-billion dollar fraud......

China's yuan convertibility trial
China is setting up a special zone to experiment with the yuan's convertibility, the latest step in its moves to open up its capital markets......

Barclays boss: I will not resign
Barclays boss Bob Diamond says he will not resign and blames a "small number" of staff for rigging the key lending rate between banks......

RIM delays Blackberry 10 launch
Blackberry maker Research in Motion says it will delay the launch of its new phone operating system Blackberry 10 and says it is to cut 5,000 jobs......

News Corp's board confirms split
The board of Rupert Murdoch's News Corporation says the media giant will be split into two publicly traded companies......

Petronas in $5.3bn Progress deal
Malaysia's Petronas agrees to buy Canada's Progress Energy Resources in a deal worth 5.5bn Canadian dollars ($5.3bn; 3.4bn)......

Vivendi boss leaving over dispute
The boss of French media and telecoms group Vivendi is quitting his job following a dispute with his board over the company's future strategy......

German unemployment rises in June
The number of people out of work in Germany rises by 7,000 in June to give a jobless rate of 6.8%, according to official figures......

Vatican Bank opens doors to media
The Vatican Bank has invited in journalists as part of moves to boost transparency, amid a scandal surrounding the Vatican's financial affairs......

Concern over future of spotchecks
Spotchecks to ensure businesses are following consumer safety rules could be curtailed under government plans, it has been warned......

House prices slip back in June
The price of a typical UK house falls 0.6% in June according to Nationwide, which blamed the ending of the stamp duty holiday......

Nike profits miss expectations
Nike reports an 8% fall in fourth-quarter profit to $549m (354m), as higher costs hit its profit margins......

Veolia's 1.2bn UK water arm sale
French utility Veolia Environnement sold its regulated UK water business for 1.24bn ($1.92bn) in a deal aimed at reducing its debts......

Plans for Gers newco in Div One
BBC Scotland learns of plans to allow the Rangers newco to move directly into Scottish Division One in the coming season......

Ex-banker jailed for F1 bribery
Former banker Gerhard Gribkowsky sentenced to more than eight years in jail for taking $44m in bribes from Formula 1 president Bernie Ecclestone......

Championship clubs in RFU dispute
The 12 clubs in England's Championship say the Rugby Football Union has failed to pay them what they were promised......

VIDEO: Firms suffer from wash-out weather
All the rain in the last few weeks has had an impact on businesses - from farmers to music festival organisers......

VIDEO: Nestle 'failing' on child labour
Nestle, the world's biggest food company, is accused of failing on child labour checks and abuses......

VIDEO: Barclays boss: I will not resign
The boss of Barclays has insisted he will not resign after staff rigged the key lending rate between banks......

VIDEO: AirBnB boss: 'Trust is the currency'
Brian Chesky, chief executive and co-founder of the AirBnB accommodation booking site, explains the principles behind his site......

VIDEO: Do you still have faith in the banks?
The Daily Politics mood box was taken to a north London high street - outside a Barclays Bank - to test the public faith in bankers and the banking system......

VIDEO: 'Breakthrough' at eurozone summit
EU leaders have agreed to use the eurozone's planned bailout fund to directly support struggling banks, without adding to government debt......

VIDEO: Banks guilty of mis-selling products
Barclays, HSBC, Lloyds and RBS are to provide compensation to customers after mis-selling complicated financial products......

AUDIO: 'People want boring banking'
What can be done to change the culture of risk on UK banks' trading floors? Economist and FT columnist John Kay and Peter McNamara, former head of personal banking at Lloyds, debate the issue......

EU summit innovations explained
The three key areas of eurozone reforms explained......

Kinect start-ups compete for cash
Microsoft matchmakes motion sensor developers with potential investors.....

Australia's leaders go to the dogs over carbon tax row
Dogged political row over Australia's new carbon tax.....

Flatter world shaping our future
Technology and the internet are causing a "creative destruction".....

How FSA calculated Barclays' fine
How the FSA calculated the Barclays fine.....

Start-ups eye UK venture capital
Start-ups discover the UK as a source of venture capital.....

Carmakers in Goodwood sales drive
Carmakers race to cash in on passionate Goodwood crowd.....

Belo Horizonte builds for World Cup 2014
Belo Horizonte builds towards 2014 World Cup.....

U.S. Week Ahead: You ready for another weak jobs report?
June 29 - Non-Farm Payrolls are set to grow by a mere 90 thousand on Friday - marking four-months of painfully tepid growth......

Euro leaders help Spain and Italy
June 29 - Euro zone leaders have agreed to take emergency action to bring down Italy's and Spain's spiralling borrowing costs and to create a single supervisory body for euro zone banks by the end of this year, a first step towards a European banking.....

EU leaders agree on crisis-solving steps
Jun.29 - Euro zone leaders go home from a crucial summit after bolstering their crisis-fighting powers but analysts say differences between them remain. Joanna Partridge reports from Brussels.....

Trading at Noon: RIM plunges; energy sector soars
June 29 - Analysts on Wall Street warn that Research in Motion could run out of cash and even ultimately fail......

Breakingviews: AB InBevs rich brew
June 29 - Jeffrey Goldfarb talks to Breakingviews columnists about the frothy assumptions around the Bud makers $20 billion acquisition of the rest of Mexicos Modelo......

Euro zone talks: behind the scenes
reporter Joanna Partridge gives a journalist's perspective on the summit - from football to food......

Europe Week Ahead: ECB likely to cut rates
June 29 - The European Central Bank is expected to reduce interest rates when it meets on Thursday. The Bank of England is under pressure to do the same......

London hotels Olympics dream fades
June 29 - London hotels are slashing prices after misjudging demand from overseas visitors coming to London for the Olympic games. Hayley Platt reports......

Reuters Asks: Which assets will perform best and worst in Q3
June 29 - Insider asks economists, analysts and strategists which financial assets will perform best in the thirs quarter......

Wealth Strategies: Energy stocks, high yield debt to thrive
June 29 - Raymond James' Jeff Saut and LPL's Anthony Valeri discuss the outlook for stocks and bonds in the third quarter in light of the upcoming elections and the extension of "Operation Twist".....

3XSQ: EU agreement boosts stocks around the world
June 29 - Global stocks jump after European leaders agree to take steps to stabilize the region's finances......

EU deal lifts euro, cuts debt yields
June 29 - European shares jump to one-week highs after euro zone leaders agreed to take action to bring down Italy's and Spain's borrowing costs, surprising a market that had been primed for disappointment. Hayley Platt reports......

U.S. Morning Call: Euro rises on EU rescue deal
June 29 - The EU agrees to let its rescue funds be used to stabilize bond markets without forcing countries to adopt more austerity measures......

Confusion over conditionality of ESM loans: Think-tank
June 29 - Euro zone leaders have agreed the ESM will be allowed to lend directly to banks. Open Europe's Pieter Cleppe says unclear conditions could open a 'pandora's box'......

Market Pulse: What's Moving Today and Why
Insider has its finger on the market pulse, analyzing and making sense of the biggest movers of the day......

Global Thinker: Joseph Stiglitz
June 29 - Nobel Prize-winning economist Joseph Stiglitz gives his views on why he thinks politicians and voters lack the solidarity and will to fix the euro zone debt crisis. Rough Cut (no reporter narration)......

The grand experiment: Yuan convertability on HK's doorstep
June 29 - Beijing unveils plans for an "experimental" zone in Shenzhen in which controls on the yuan will be loosened and businesses will enjoy special perks......

Breakingviews: Euro zone deal ticks the boxes
Breakingviews.....

Sports Spread: Spain vs Italy in debt crisis derby
June 29 - The final of Euro 2012 sees Spain take on Italy in a debt crisis derby. We run an eye over the odds......

Stiglitz: It's the politics, stupid!
June 29 - There are no grounds for optimism when it comes to the euro zone crisis, politicians and voters lack the solidarity and will to fix it, says Nobel Prize-winning economist Joseph Stiglitz......

Reuters Today: Italy puts two past Germany
June 29 - Italy enjoys a night of triumph on and off the pitch as its footballers beat Germany and its negotiators win a deal to cut borrowing costs during a night of drama in Brussels......

Hong Kongers grapple with identity crisis
June 29 - Fifteen years after the financial center's handover to Chinese rule, a weak market and Beijing's heavy hand are causing a stir......

Asia Week Ahead: HK anniversary, Macau gaming, Samsung
June 29 - Hong Kong marks 15 years back in Chinese hands with a visit from President Hu Jintao. Watch for Macau gaming revenues, and earnings guidance from Samsung after its S3 smartphone launch......

EU agrees growth pact, Italy Spain demand help
June 29 - Italy and Spain held up agreement on measures to promote growth at a summit of European leaders. The two countries are under market pressure in the euro zone crisis and demanded urgent action to bring down their borrowing costs. Joanna Part.....

Curing America's health care ills
June 28 - The Supreme Court's decision to uphold most of President Obama's Affordable Care law is only a bandage for the ailing American health care system. Conway G. Gittens reports......

Markets rally after defeat for Merkel
Global stock markets surged as traders celebrated an unexpected defeat of Angela Merkel's austerity strategy at the Brussels summit, despite warnings that the deal reached by European leaders would be insufficient to arrest the crisis.<img width='.....

Debt crisis live: Britain won't cede more power to EU
Prime Minister David Cameron seeks to claw back powers after 'remorseless logic of having a single currency' forces Germany to accede to Italian and Spanish demands for eurozone aid to cut borrowing costs.<img width='1' height='1' src='http://tele.....

Lenders to pay compensation in new mis-selling scandal
Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland, face a bill of up to 6bn after agreeing to compensate customers.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20dbd659/mf.gif' border='0'/>.....

Leaders must not go off-piste into oblivion
The eurozone has pushed off on the black run of fiscal union.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20dbd65b/mf.gif' border='0'/>.....

Ambush from Italy and Spain forces Angela Merkel to dilute euro deal
Angela Merkel was forced into a humiliating about-turn after being ambushed at a European Union summit by a new Latin alliance of France, Italy and Spain.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20dbd65c/m.....

Tesco will leave US if it fails to make profit
Supermarket will abandon its US venture if it cannot make it work.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20dbd19a/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/1384.....

BP considers Gazprom gas pipeline to UK
BP has regained some control over the running of Russian joint venture TNK-BP, securing the agreement of its oligarch partners to meet as a board for the first time since December.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/3.....

RBS chief Hester waives bonus over Natwest 'glitch'
RBS chief Stephen Hester will waive his bonus this year - potentially worth up to 2.4m - following the computer systems failure which caused disruption to millions of its customers.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/.....

3i cuts more than 160 jobs and shuts offices
Private equity group 3i has cut more than a third of its workforce as it looks to reduce annual operating costs by 45m within two years.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20db7d94/mf.gif' border='0'/.....

William Hill goes to battle with Betfair customers over horseracing levy
Bookie in court bid to force Betfair customers to pay towards racing.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20db755e/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/1.....

Gold mining groups sparkle and tumble
Small gold mining companies were in focus as London stockmarkets rallied hard.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20db0162/mf.gif' border='0'/><br/><br/><a href="http://da.feedsporta.....

Firms' 'disbelief and horror' over rate swaps scandal
Banks must be "held to proper account" for the "appalling breach of trust" over their mis-selling of interest rate swaps to small companies, business groups have demanded.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56.....

Debt crisis: Ireland hails euro 'game changer'
Ireland claimed that a deal struck at a summit of eurozone leaders was a "game changer" for the country which would help it escape a second bailout.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20da0760/mf.gif'.....

Bank unveils new economic stimulus
The Bank of England has unveiled new stimulus measures to allow banks to pump tens of billions of pounds into the economy.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20da0762/mf.gif' border='0'/><br/>.....

RIM delays launch of BlackBerry 10 phone
Research in Motion shares fell nearly 20pc on Friday after the company delayed the launch of a new BlackBerry phone the company is betting will save it.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20d2a5a5/mf......

Services sector stagnates as bad weather hits shops
Brtiain's dominant services sector failed to grow in April, snuffing out hopes that the economy escaped recession in the second quarter.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20d64fbf/mf.gif' border='0'/.....

Libor scandal could take British banking 'back to 1970s'
If Sir Mervyn King's recommendations for banking reform take place then London's pre-eminence within the global finance world could be under threat, say Harry Wilson.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/.....

Debt crisis live: Markets surge after EU summit deal
European markets soar after Germany caves in to demands made by Italy and Spain for immediate eurozone aid to bring down their soaring borrowing costs, sending the euro and stock markets higher.<img width='1' height='1' src='http://telegraph.feeds.....

AB InBev swallows Corona maker Modelo for $20.1bn
Takeover of Grupo Modelo widens the gap on AB InBev's rivals.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20db0164/mf.gif' border='0'/>.....

AB InBev swallows Corona maker Modelo for $20.1 billion
The world's biggest brewer, Anheuser-Busch InBev, has widened the gap on its rivals after swallowing the maker of Corona, Grupo Modelo, for $20.1bn (12.9bn).<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20dae6f.....

Berkeley warns of Government interference as posts "tremendous" results
Housebuilder Berkeley Group posted recession-busting results with turnover, profit and earnings per share up over 40pc.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20d8c90c/mf.gif' border='0'/>.....

Banks' interest rate swap products 'killed' businesses
Companies have been forced into administration as a direct result of paying for interest rate swap products, says banking correspondent Harry Wilson.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20d8c90e/mf.gif.....

King attacks 'deceitful' banking culture
BoE Governor has launched a scathing attack on "deceitful" investment banking and called for a "real change in the culture of the industry" stretching right to the top, in the wake of the Barclays rate-fixing scandal<img width='1' height='1' src='.....

Over half of firms say regulation is barrier to growth
Business leaders have urged the Government to speed up plans to reform employment law after more than half of companies cite regulation as a barrier to growth.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20d80.....

Mervyn King reiterates call to break up banks
Mervyn King, the Governor of the Bank of England, urged the separation of lenders' retail businesses from their "casino banking" arms and a "real change in culture" at British banks.<img width='1' height='1' src='http://telegraph.feedsportal.com/c.....