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Thursday 12 July 2012

UK Financial News on 2012-07-12

Boeing and United in $14.7bn deal
US planemaker Boeing announces an "historic" order from United Airlines for 150 Boeing 737s, in a deal worth up to $14.7bn (9.5bn)......

Euro falls to two-year dollar low
The euro falls to its lowest level against the dollar since June 2010 after the latest US Fed minutes dampen hopes of any new stimulus measures......

US bank handed racial bias fine
US bank Wells Fargo will pay at least $175m (113m) to settle accusations that it discriminated against African-American and Hispanic borrowers......

Peugeot Citroen to cut 8,000 jobs
French carmaker Peugeot Citroen sets out plans to cut 8,000 jobs and close an assembly plant outside Paris as losses mount......

Ireland 2011 growth revised up
The Republic of Ireland's growth rate last year was double previous estimates at 1.4% but this year started badly, figures show......

UK 'must make more spending cuts'
The UK government must make deeper spending cuts or raise more money to keep public finances in check, the Office for Budget Responsibility says......

Mortgage lending for May rebounds
Mortgage lending rebounded in May, lenders say, after a slump following the reintroduction of 1% stamp duty for first-time buyers in April......

Superdry owner profits fall 15%
Supergroup, owner of the Superdry clothing brand, reports a fall in profits, blaming poor accounting and management controls......

Primark sees strong sales growth
Sales at discount fashion chain Primark have continued to grow strongly, its owner Associated British Foods says......

Tata's IT outsourcing profit up
India's biggest IT outsourcing firm, Tata Consultancy Services, posts a 38% rise in first-quarter net profit, helped by a weak rupee......

Asian shares fall on bank action
Asian shares fall after South Korea makes a surprise interest rate cut while the Bank of Japan makes only minor changes to its stimulus programme......

Deal creates global media giant
London-based marketing agency Aegis is sold to Japanese rival Dentsu for 3.2bn, creating Asia's largest communications company......

O2 network 'partially restored'
Thousands of O2 subscribers are still unable to use voice and data services hours after a "network systems fault"......

Eurozone woes hit Carrefour sales
Supermarket chain Carrefour reports falling sales as austerity measures in Europe hit consumer spending......

Airport expansion debate delayed
The government delays consultation over expanding airports in south-eastern England for a second time, amid reports of disagreements on how to go ahead......

Weak outlook hits Infosys shares
Infosys shares fall after the software exporter reports weaker-than-expected earnings and cuts its sales forecast for the year......

Angry Birds maker's new franchise
Rovio releases its first non-Angry Birds title in three years, but Apple users report problems with the new game......

Big rise in black boxes for cars
There's a big increase in the number of drivers trying to get cheaper motor insurance by fitting black boxes inside their cars......

Plan to cap care costs 'on hold'
Ministers have refused to fully commit themselves to a cap on care costs for the elderly in England, saying they need to explore cheaper options first......

'Confusion' over legal products
Consumers are struggling to understand complex and confusing products sold by the legal sector, an ombudsman warns......

Poverty target 'will not be met'
The UK has no chance of meeting its target of eradicating child poverty by 2020, the government's adviser on social mobility says......

US Fed keeps policy options open
The Federal Reserve is open to the possibility of a new round of asset purchases but the US economy may need to get weaker before any action is taken......

Spain plans sweeping budget cuts
Spanish Prime Minister Mariano Rajoy announces sweeping budget cuts and tax rises, as police clash with protesters in Madrid......

Eurozone 'risks losing 4.5m jobs'
The eurozone could lose 4.5 million more jobs unless the region shifts away from austerity, the International Labour Organization warns......

Vodafone to buy Telstra NZ unit
Australia's biggest telecommunications company, Telstra, sells its New Zealand subsidiary to Vodafone for 840m New Zealand dollars (431m)......

Britvic shares hit by recall cost
Shares in Britvic slump 13% after the firm says delays in getting its recalled Robinsons Fruit drinks back to market could cost up to 25m......

Thorntons sales up amid cost cuts
Troubled chocolate maker Thorntons reports a sharp rise in sales as it tries to return to profit......

Former Fifa chief 'took bribes'
Documents reveal ex-Fifa president Joao Havelange was paid huge sums in bribes by marketing company ISL......

Games security 'not compromised'
There is "no question" of Olympics security being compromised, the home secretary says, after it emerges 3,500 extra service personnel will be needed......

Gers 'lost 4m' in administration
Rangers Football Club lost almost 4m from the time it was placed in administration until the end of June, a creditors report reveals......

VIDEO: Peugeot announces 8,000 job cuts
French automaker PSA Peugeot Citroen has announced 8,000 job cuts and the closure of its Aulnay assembly plant......

VIDEO: Government delays airport talks
The government has confirmed that it is delaying a full consultation on the future expansion of airport capacity in the South East of England until "later this year"......

AUDIO: What makes a successful city?
Why do some cities work and others not? The Centre for Cities think tank is trying to find a way of predicting what works and what doesn't. Why for instance does the city of Preston manage to survive down the ages? The BBC's Chris Buckler reports......

VIDEO: What impact from 02 disruption?
Blogger Kat Hanniford of Gizmodo.com discusses the likely long-term impact for 02 of the service disruption which hit the mobile operator......

VIDEO: Morrisons: 'We work with the farmers'
Dairy farmers across the UK are due to protest at Westminster to voice concerns over the future of the industry.....

VIDEO: Olympics cause airspace headache
The UK's armed forces will take formal control of British airspace from Saturday as part of the security preparations for the 2012 London Olympics......

VIDEO: Growth in 'ethical banks'
As the Barclays rate fixing scandal continues to hit the headlines, more people are investing in so-called ''ethical banks''.....

VIDEO: Young people lack 'basic life skills'
The chairman of the Poundland chain of shops claimed some young people lack the "basic but crucial life skills" for work, and business leaders must play their part in helping them......

Skills key to cities' survival
How cities' fortunes have changed from 1901 to today.....

Is China heading for a crash?
Is the Chinese economy heading for a slowdown?.....

G4S profile: What is G4S?
What will Olympic contract problems mean for G4S?.....

PPI: 65,000 compensation payment
One woman's 65,000 payout for PPI insurance mis-selling.....

Armitt in 2012 Games business call
Winning sport business deals after the 2012 Games.....

Bombardier prepares to take on Airbus and Boeing
Bombardier prepares to take on bigger rivals Airbus and Boeing.....

Refunds for weather-hit events
Getting your money back when events are cancelled.....

Taking a cash lump sum from a pension
When can you take a cash lump sum from your pension?.....

U.S. Day Ahead: JPM's Dimon aims to win back street cred
July 12 - JPMorgan's chief Jamie Dimon is going to have his skills tested when he talks face to face with analysts at a highly unusual meeting at the company's headquarters......

Futuristic airport security measures unveiled at Farnborough
July 12 - Surveillance and security detection company FLIR is offering visitors to the Farnborough International Airshow a preview of what they believe will be the airport check-ins of tomorrow. They've devised a series of new high-tech security meas.....

Trading at Noon: U.S. stocks fall on economic slowdown
July 12 - U.S. stocks are plunging with the S&P 500 and Nasdaq down more than one percent.....

Breakingviews: Wells Fargos worrying mortgage dominance
Antony Currie and Breakingviews columnists discuss why the banks huge home lending and servicing business might be great for profits, but a concern for borrowers and taxpayers......

Will wet Olympics damage Brand Britain?
July 12 - From the Queen's Diamond Jubilee to the upcoming London Olympics, Britain is hosting some major events this summer. But after the wettest June on record, some are worried the rain will frighten off tourists. Joanna Partridge reports.....

8,000 Peugeot jobs and counting
July 12 - Peugeot's announced job cut of 8,000 staff is met with stiff opposition from France's unions and government, but it could prompt similar action from automakers across Europe. Joel Flynn reports.....

Europe Day Ahead: Italian bonds vie for focus with China, JPM
July 12 - Italy sells over 5 bln of bonds in a test of investor appetite for the euro zone's weaker economies. But European markets could take their cue from Chinese GDP and JP Morgan results......

LIGHTNING ROUND: Opportunities in munis despite bankruptcies
July 12 - Even after San Bernadino, Califorina declared bankruptcy, Cumberland Advisors' David Kotok says there are opportunities in revenue generating muni bonds, such as the NJ Turnpike......

Wealth Strategies: Predicting bank earnings is a gamble
July 12 - Estimates for the size of JPMorgan's "London Whale" loss vary widely, and StarMine's Sri Raman says analysts are having a hard time determining what the company and other banks will earn this quarter......

3XSQ: Buffett pessimistic; Ireland GDP shrinks
July 12 - Warren Buffett says the U.S. economy has slowed in the past 6 weeks, and the Irish troika sees growth remaining modest into 2013......

Micro drones spread their wings
July 12 - The next generation of drones are on display at the International air show in Farnborough showing how pilot-less aircraft are now being used in civilian life. Julian Satterthwaite reports.....

Market Pulse: Down, down, down..oil, stocks, bond yields
July 12 - It's a down day for oil and stocks as investors react to the IEA's latest report and Fed minutes. Bond yields also down across the board, with the Dutch 2-year negative for the first time ever......

Lockheed Martin's trillion dollar headache
July 12 - The Joint Strike Fighter could cost $1.45tln over its lifetime, but for lead contractor Lockheed Martin the runaway costs are turning into a major headache. We talk to COO-elect Marillyn Hewson......

Breakingviews: Peugeot job cuts test Hollande
July 12 - How the dispute between Peugeot and the French Government plays out will set the tone for the direction Francois Hollande is taking his government say Breakingviews......

2013 oil demand to rise but prices fall - energy agency
July 12 - The International Energy Agency is forecasting a modest pick up in oil demand next year to 1 million barrels per day, but expects crude prices to be "mildly lower".....

Slowdown puts China CEOs in the crossfire
Sudden boardroom shakeups are increasing in a country better known for stage-handled handovers, as a tepid economic environment strains bottom lines and tests investors' patience......

Reuters Today: South Korea surprises, Fed disappoints
July 12 - South Korea surprises with a rate cut, while Fed minutes suggest no more easing any time soon. In Europe, protests in Spain and jobs pain in France. Plus, North Korea's Kim Jong-un and Rocky......

Breakingviews: China's reluctant spenders
July 12 - China's export machine is slowing down, so where are the consumers who were supposed to ride to the rescue of the world's second-largest economy?.....

Dental cyborg serves as perfect patient
July 12 - Aspiring dentists in Japan are honing their technical skills and chairside manners with a model patient who endures multiple procedures ever day just to provide performance feedback. Called Simroid, she's the only practice-patient of her ki.....

U.S. Morning Call: Stock futures down; jobless claims ahead
July 12 - U.S. stock futures are pointing to a lower open on Wall Street, but weekly jobless claims data could change the mood......

Sports Spread: Wiggins - Talk of Le Tour
July 12 - British sporting hopes this weekend lie on the broad shoulders of cyclist Bradley Wiggins. But will he make to Paris in yellow and claim victory in the Tour de France?.....

Markets on Fed: Ben there, done that
July 11 - Summary of business headlines: Stocks fall after Fed minutes give few clues of additional stimulus; Crop report slashes harvest forecasts but prices drop; Groupon hits post-IPO low. Conway G. Gittens reports......

3 reasons a QE3 may not work
July 11 - Despite all the market speculation- its not clear a possible third round of bond purchases by the Fed, referred to as QE3, would be the cure for the ailing U.S. economy. Bobbi Rebell reports......

U.S. Day Ahead: Signs of healing in job market
July 11 - As the Fed debates more stimulus, pay close attention to initial jobless claims in the morning. The good news - claims could stick at pre-recession levels......

U.S. Day Ahead: Signs of healing in job market
July 11 - As the Fed debates more stimulus, pay close attention to initial jobless claims in the morning. The good news - claims could stick at pre-recession levels......

'Full price' Aegis deal delights investors
Shareholders were left counting their blessings after Japanese advertising company Dentsu agreed a 3.2bn takeover of its UK rival at what insiders called an "incredible price".<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726.....

Head of GM's European division steps down
The head of General Motors' European division has stepped down after less than a year in the role to take on "special assignments" for the chief executive.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2149e4cb/.....

Euro tumbles as Asian funds shun EU chaos
The euro has plunged to multi-year lows against a range of currencies on fears of a deepening slump in Italy and Spain, and ugly disputes between eurozone leaders.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2.....

France's story of failure should drive our success
A car industry shedding jobs in the thousands after a chronic loss of competitiveness undermined by the dead hand of state aid. Sound familiar?<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/214984e7/mf.gif' bord.....

Visitor revenues soar as tourist numbers hit record high
Spending by visitors to Britain has hit a fresh high, with excitement around royal events and the Olympics drawing more holidaymakers to the UK than ever before.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/214.....

Ashmore follows the FTSE 100 down
Bad news for investors in Ashmore who saw shares in the emerging markets-focused fund manager sink today, after the group revealed it had been hurt by heavy outflows in its equities division.<img width='1' height='1' src='http://telegraph.feedspor.....

Emerging market oil demand to surpass OECD, IEA forecasts
Demand for oil from emerging markets will overtake that of the developed world for the first time next year, the International Energy Agency has forecast.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2149afd5/m.....

Vincent Bollor: The French billionaire at the heart of Aegis for 7-years
Vincent Bollor, the French billionaire and corporate raider, is the kind of investor chief executives hope will not end up on the shareholder register.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2149afd6/mf.g.....

Make Your Mark with a Tenner revived
A scheme which sees thousands of children from across the UK each handed 10 to start a business is to be revived by Young Enterprise, a charity which forges links between business and schools.<img width='1' height='1' src='http://telegraph.feedspo.....

Airlines and businesses hit out at delay to airport capacity debate
Britain is being "held back" by the Government's lack of a coherent aviation strategy and the postponement of a long-awaited consultation on airport capacity, business leaders claimed on Thursday.<img width='1' height='1' src='http://telegraph.fee.....

Two cleared of 52m pension fraud as third gets 8 years
A businessman extradited from Australia on charges of stealing 52m from a pension fund has been cleared of involvement in the crime.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2149afd7/mf.gif' border='0'/>.....

Two cleared of 52m pension fraud as third gets 8 years
A businessman extradited from Australia on charges of stealing 52m from a pension fund has been cleared of involvement in the crime.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2148c34d/mf.gif' border='0'/>.....

Falklands oil is 'a risk worth taking', says Premier as it signs $1bn deal
The threat of Argentine action over the Falkland Islands is a "risk worth taking", Premier Oil declared, as it signed a 650m deal that could see oil flowing from the islands by 2017.<img width='1' height='1' src='http://telegraph.feedsportal.com/c.....

Spending reforms are fixing UK's long-term debt problems, OBR says
Government measures to cut the budget deficit and reform public sector pensions have improved Britain's long-term economic prospects, according to the independent Office for Budget Responsibility.<img width='1' height='1' src='http://telegraph.fee.....

Leicester to pull millions from Barclays over Libor scandal
Barclays is facing growing protests over its attempts to rig Libor with some customers withdrawing money in response to the bank's admission that it tried to manipulate the world's key borrowing rate.<img width='1' height='1' src='http://telegraph.....

Libor scandal ripples across the Atlantic
Suddenly, this month's diary looks far more arduous for Tim Geithner who, as US Treasury Secretary, sets America's economic policy alongside Federal Reserve chairman Ben Bernanke.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32.....

Poker and casino pay out for 888 Holdings
Online gaming company 888 Holdings has signalled 2012 could be its annus mirabilis as it surprised investors with improved forecasts for the year.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2148e002/mf.gif' b.....

Poker and casino pay out for 888 Holdings
Online gaming company 888 Holdings has signalled 2012 could be its annus mirabilis as it surprised investors with improved forecasts for the year.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2147e6ba/mf.gif' b.....

Peugeot Citroen slashes 8,000 jobs ahead of state 'rescue plan'
Europe's second biggest car maker, PSA Peugeot Citroen, is to cut 8,000 jobs and close the first car factory in France for more than 20 years.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2147e6bc/mf.gif' borde.....

Jubilee baking boost for Associated British Foods
A boom in home baking during the Queen's Diamond Jubilee helped AB Foods, owner of Silver Spoon, serve up a 13pc increase in third-quarter revenues.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2148d7b5/mf.gif'.....

Payday loans could cost you a mortgage
Mortgage provider GE Money has said that it will not process applications from those who have taken out a payday loan.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/21478699/mf.gif' border='0'/><br/><.....

Debt crisis: Italy's statisticians threaten 'stats black-out'
Italy's official statisticians are threatening to down calculators and stop reporting on its stricken economy - as they themselves fall victim to the recession they are paid to track.<img width='1' height='1' src='http://telegraph.feedsportal.com/.....

Greek unemployment rate at new record of 22pc
Greek unemployment hit a record 22.5pc in April and may keep edging higher, with even the key tourism sector unlikely to provide more than fleeting support over the summer as visitors stay away from the recession-hit country.<img width='1' height=.....

Vodafone buys Telstra's New Zealand business
Vodafone is to buy the New Zealand operations of Australia's Telstra in a NZ$840m (435m) deal that could threaten the dominance of Telecom New Zealand.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/21476c33/mf.g.....

Primark owner AB Foods aided by Diamond Jubilee baking bonanza
Associated British Foods expects a big rise in full-year profits, helped a home baking bonanza during the Jubilee weekend and cash-strapped shoppers shrugged off record rainfall to buy budget fashion at Primark.<img width='1' height='1' src='http:.....