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Saturday 30 June 2012

UK Financial News on 2012-06-30

Ministers order bank rate review
The government announces an independent review of the workings of the Libor inter-bank lending rate in the wake of the Barclays fine......

Bank account closures 'unjust'
The chairman of a key consumer body has called for major changes in the way banks deal with customers where there is an allegation of fraudulent activity on an account......

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......

Shares rise on eurozone bank deal
European and US stock markets rise after eurozone leaders agreed a bailout deal for struggling debt-laden banks......

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......

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)......

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......

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

VIDEO: Your Money: Saving money for travellers
Declan Curry focuses on travel this week, looking at rail fares, hotel and flights, and the cost benefits of car shares......

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......

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.....

Superheroes, super summer
June 29 - Superhero movies have been overwhelming favorites at the box office this summer as movie studios bank on comic book characters, and the Amazing Spider-Man is likely to continue the trend when it opens in time for the July 4th holiday. Jill .....

Wall St. shines in quarter-end rally
June 29 - Summary of business headlines: Wall Street rallies 2-1/2 percent as Europe strikes a bank bailout deal; Investors look ahead to U.S. jobs data and Federal Reserve as consumers hit the brakes; U.S. listed shares of Research In Motion shed 19.....

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......

Meet Petronas, Malaysia's main cash pipeline
Malaysian energy giant Petronas funds about 45 percent of the country's budget -- making it all the more crucial that it tackles concerns about dwindling supplies and government interference......

FTSE 100 will beat female board member target, says Sir Win Bischoff
Sir Win Bischoff has predicted that FTSE 100 companies will easily meet Government targets to double the number of women on their boards by 2015, but warned that chairmen must rethink how to achieve meaningful equality at the top.<img width='1' he.....

Standard Chartered takes $700m annual hit for being based in UK
Standard Chartered is taking a $700m annual hit on its bottom line as a result of being based in the UK, it can be disclosed.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20e1d140/mf.gif' border='0'/><br/.....

The Shard set for first office tenant
The man behind The Shard, London's newest landmark, says plans are on track to secure its first office tenant as the capital readies for the building's official unveiling this week.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/.....

Centrica's Canadian unit sued over energy bill interest
Centrica's Canadian subsidiary, Direct Energy, is being sued over allegations it made millions of dollars by charging customers high rates of interest on unpaid energy bills.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f.....

MPC expected to launch 50bn QE
The Bank of England is poised to pump 50bn of fresh stimulus into the ailing economy in a bid to drive Britain out of recession.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20e1d143/mf.gif' border='0'/><.....

MPC set to launch 50bn QE
The Bank of England is poised to pump 50bn of fresh stimulus into the ailing economy in a bid to drive Britain out of recession.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20e19a80/mf.gif' border='0'/><.....

Glencore chief Ivan Glasenberg could walk away from $65bn Xstrata merger
Ivan Glasenberg, chief executive of Glencore, is prepared to walk away from his $65bn merger with Xstrata rather than be forced into what he would consider overpaying for the deal.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/3.....

Banks still charging customers for interest rate 'bets' despite FSA settlement
Banks are continuing to demand thousands of pounds from small businesses on complex interest rate products, despite the Financial Services Authority finding "serious failings" in the way they were sold.<img width='1' height='1' src='http://telegra.....

Banks blasted for 'profiteering from developing world loans'
Banks 'made excessive profits from loans to firms in developing world'.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20e19a83/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r.....

Microfinance is under threat from greed - and it's the poor who are suffering
Controversial new book alleges microfinance has been hijacked by profiteers.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20e19a85/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal......

UK laws are to blame for Vodafone tax controversy, says chief Vittorio Colao
Vodafone's chief executive, Vittorio Colao, has attempted to draw a line under the tax controversy that has dogged the company.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20e19a88/mf.gif' border='0'/><b.....

Ernst & Young 'covered up judge bribe case'
Senior figures at Ernst & Young covered up allegations that the big four accountant bribed a judge to obtain a favourable outcome in a tax trial, it is claimed.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/.....

Aviva could shed 15 divisions in radical overhaul
Aviva is considering selling or closing up to a fifth of its business divisions in a radical overhaul of one of the UK's leading insurers.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20e19a8d/mf.gif' border='0.....

Banks were 'unethical', says FSA's Martin Wheatley
The financial regulator has branded the conduct of banks in the years running up to the crash as "unethical", saying that in many cases staff at major lenders did not understand the products they were selling.<img width='1' height='1' src='http://.....

Libor scandal: Barclays investors demand removal of Bob Diamond and Marcus Agius
Two of Barclays' leading shareholders have demanded the removal of Bob Diamond, the chief executive, and Marcus Agius, its chairman, as the firestorm surrounding the bank intensifies.<img width='1' height='1' src='http://telegraph.feedsportal.com/.....

FSA's Martin Weatley 'shocked' by Libor and interest rate mis-selling scandals
With no sense of understatement, Martin Wheatley, Britain's top financial regulator, describes the past couple of weeks as a "perfect storm".<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20e19a93/mf.gif' border.....

Libor scandal: at the root of all financial crises is a lack of transparency
A history of business in fewer than 60 words.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20e19a95/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/138442510301/u/3/f/568300.....

Libor scandal: Was Barclays the worst offender?
Libor scandal could have far-reaching consequences for banking industry.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20e19a97/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/.....

Entrepreneurs can lead Britain out of recession, says Julie Meyer
In her new book, Julie Meyer hails a new era of individual capitalism.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20e19a99/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/.....

Vodafone chief Vittorio Colao: Am I paid too much? That's a tough call
Vittorio Colao, Vodafone chief executive, talks to Katherine Rushton about the company's tax issues, defending his 14m pay, and why London is good for business.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20e1.....

Libor scandal: the righteous wail of the anti-Bob bandwagon
There must be a time in any chief executive's life when by far the easiest option is to just pack up and go home.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20e19a9d/mf.gif' border='0'/><br/><br/&.....

Glencore is running out of options in Xstrata row
If there was ever a week a company's board wished to be over - Barclays aside - it was surely last week for the board of Xstrata.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20e19a9f/mf.gif' border='0'/><.....

Italy has won this euro battle, but not the war
Long-suffering investors, desperate for some good news, have seized on the headlines from the latest in a long series of "last-ditch" European summits.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20e19aa0/mf.g.....

Backing Britain? In a volatile world it makes perfect sense
I gave a presentation to some clients on Friday in which I compared the world's markets with an increasingly wobbly three-legged stool.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20e19aa1/mf.gif' border='0'/&.....

Bankers fear reviews into interest-rate fixing scandal will be 'witch-hunt'
Senior City figures warn against 'knee jerk' regulation as David Cameron orders reviews in wake of Barclays scandal.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/20e19aa2/mf.gif' border='0'/><br/><b.....