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Wednesday 25 July 2012

UK Financial News on 2012-07-25

Recession in UK economy deepens
The UK recession has deepened, latest official figures show, after the output of the economy fell by a bigger-than-expected 0.7% between April and June......

Geithner warned UK about Libor
US Treasury Secretary Timothy Geithner has said he warned UK authorities about problems with the Libor inter-bank lending rate in 2008......

Faster Spanish bank rescue backed
France and Spain call for EU leaders to accelerate a rescue plan for Spanish banks to calm fears of a full international bailout......

Lady Gaga sued by Bratz doll firm
Lady Gaga and her management company are being sued by the makers of Bratz toys, over "deliberate" delays to a doll in the pop star's image......

Twitter to reveal spoof identity
Twitter has warned that it must reveal the identify the owner of an account spoofing a UK newspaper group boss......

Jaguar to create 1,100 new jobs
Luxury car company Jaguar Land Rover says it will create 1,100 new jobs at its Castle Bromwich plant in the West Midlands......

Wind energy subsidy cut unveiled
The subsidy for onshore wind energy generation is to be cut by 10%, the energy secretary says, less than some members of the government had called for......

House sales up at half-year stage
Completed property sales in the first half of the year were 11% up on the same period last year, figures from HM Revenue & Customs show......

Boeing in $11bn Aeromexico deal
Boeing, the US aircraft maker and defence contractor, is to sell up to 100 planes to Mexican airline Aeromexico in a deal worth $11bn (7.1bn)......

Complaints about energy firms dip
Complaints about major energy companies fell by 7% in the first three months of the year, a consumer watchdog says......

EU to act on Libor rate rigging
The European Commission is proposing to make interest rate fixing a criminal offence in the wake of the Libor banking scandal......

Train deal to create 900 UK jobs
More than 900 jobs will be created as part of a 4.5bn contract to build and maintain new inter-city trains, the Department for Transport says......

Payday lenders agree new rules
Payday lenders have agreed a new code aiming to protect customers from "hidden charges", but a consumer group says little has changed......

Peugeot reports 819m euro loss
French car firm Peugeot reports a six-month loss of 819m euros (638m) as the French government unveils a support plan for the industry......

Chevrolet to sponsor Liverpool FC
US carmaker Chevrolet signs a four-year deal with Liverpool to become the football club's automotive sponsor......

Apple chip designer profits rise
Arm Holdings, the UK firm behind the computer chip technology powering Apple's iPhone and iPad, reports a 23% boost to second-quarter profits......

Federer tops Olympians rich list
Tennis players and basketball stars dominate the list of the top-earning Olympians, according to a new report......

Modern Family cast in salary row
Five stars of hit US comedy show Modern Family are suing to have their contracts declared void in a dispute over pay......

Threat of rising insurance costs
UK consumers are facing rising vehicle and home insurance costs following the recent bad weather, a survey suggests......

Payday loans concern for jobless
An increasing number of unemployed people are struggling with payday loans, a charity warns, as a new loan code is prepared......

Wet weather slows mortgage market
Activity in the UK mortgage market was dampened in June by the spell of bad weather, a banking group has said......

Japan in record half year deficit
Japan posts a record half-yearly trade deficit as exports weaken and increased demand for fuel results in jump in imports......

IMF: Eurozone 'key risk' to China
The International Monetary Fund (IMF) warns that the worsening debt crisis in the eurozone poses a "key risk" to China's growth......

Spain finances under new pressure
Spain and Germany sought to reassure investors that Spain would not need to seek a full international bailout, after the country's borrowing costs hit a record high......

Ford profits hit by European loss
Ford reports a sharp fall in second quarter profit to $1bn as it continues to suffer heavy losses at its European unit......

Deutsche Bank in profit warning
Deutsche Bank shares fall 4% following a profit warning and amid fears it may have to raise more capital to strengthen its balance sheet......

Tax break fuels gas field plans
A new gas field is to be brought on stream with a 1.4m investment, following an announcement of a tax break worth 20m a year......

ALBA extend Challenge Cup TV deal
BBC ALBA and the Scottish Football League agree a three-year extension for Ramsdens Challenge Cup coverage......

Pompey to face 10 August deadline
Portsmouth FC is likely to have "no alternative" but to close on 10 August unless players agree to transfers or wage cuts......

Sarries sign 8m ground name deal
Saracens will name their new ground Allianz Park after reaching a six-year agreement with a German financial services company......

VIDEO: Does the 1930s housing boom offer lessons?
In the search for growth, some economists have been looking for lessons from the 1930s when a house building boom helped provide a way out of the financial crisis......

VIDEO: Fall in construction hits GDP
The sharp slowdown in construction in the second quarter with output in the building sector falling 5.2%......

VIDEO: Why are the GDP figures so bad?
UK GDP sank by 0.7% in the last quarter, despite a drop in the levels of unemployment......

VIDEO: Border staff strike called off
A 24-hour strike by border control staff which was due to start on the eve of the Olympic Games has been called off......

AUDIO: How to predict Olympic medal success
Philippa Thomas reports on the business of predicting Olympic nations' medal ranking......

AUDIO: Wind subsidy cut 'should be 10%'
The government will shortly announce that cuts to the subsidies given to onshore wind farms will not be as deep as expected. After negotiations between the coalition parties, the reduction will be set at ten percent......

VIDEO: Lord Green 'regrets' HSBC scandal
The Trade Minister Lord Green says he shares HSBC's "regret" over the banks role in allegedly laundering money......

Why are we obsessed by growth?
Why are we obsessed by growth?.....

Viewpoint: The challenges facing challenger banks
Why it will be hard to create a more competitive banking sector.....

China dives into North Sea waters
Why is China buying North Sea companies?.....

Fairtrade's impact on coffee's birthplace
Ethiopian coffee farmers seek higher prices.....

U.S. Day Ahead: Zuckerberg could be a no show on FB's call
July 25 - Investors will hone in on Mark Zuckerberg's performance if he actually appears on Facebook's earnings call. But the socially awkward Zuckerberg might give it a miss......

Trading at Noon: The Good the Bad & the Ugly in Earnings
July 25 - A look at results for Caterpillar, Apple and Netflix and their impact on markets today......

Biggest danger is Europe crisis -- Brazil's Tombini
July 25 - The probability of an extreme economic event has decreased from six months ago, but Europe is still the biggest problem, says Brazil Central Bank Governor Alexandre Tombini......

Breakingviews: Sandy Weills surprising conversion
July 25 - Richard Beales and Breakingviews columnists discuss how the Citigroup architects new belief in Glass-Steagall reflects calls for bank breakups across the political spectrum......

Recession rains on UK's parade
July 25 - Britain's economy shrank far more than expected in the second quarter, battered by an extra day's holiday, budget austerity and the euro zone crisis. Ciara Sutton reports.....

Europe bailout boost mooted
July 25 - Growing concerns over a full Spanish bailout and ways for Europe to fund indebted countries have sparked debate over how to inject more cash into rescue funds. Joanne Nicholson reports.....

Europe Day Ahead: euro zone crisis expected to hurt earnings
July 25 - Q2 earnings are expected to reflect the deepening euro zone crisis; big names reporting include Shell, Lloyds, Santander, BASF and Siemens.....

3XSQ: Apple could drop to $567
July 25 - If the past is any indication, Apple may fall to $567 based on the last time the company missed estimates......

Wealth Strategies: Facebook may miss in 1st earnings report
July 25 - StarMine's Sri Raman says the best analysts are predicting Facebook to miss estimates when it reports Q2 earnings, and points out the stock is trading well above its intrinsic value of under $10......

London's fashion Olympics
July 25 - The London 2012 Games have been dubbed the fashion Olympics in some circles, with the likes of Stella McCartney, Giorgio Armani and Ralph Lauren tasked with the job of designing outfits for national teams. Hayley Platt reports......

U.S. Morning Call: Apple's earnings show rare miss
July 25 - iphones see a drop-off in demand in Apple's second-largest market China, adding to a rare earnings miss for the tech giant......

Too early to see Olympic UK growth boost: statistics office
July 25 - Bad weather and the royal jubilee helped deepen the recession in Britain in the first half, and the Office for National Statistics believes it's too early to say if the Olympics can restore growth......

Market Pulse: Nowotny's call for fund boost no solace
July 25 - ECB member Ewald Nowotny's call to add firepower to the region's new bailout fund is likely to fall on deaf ears, argues David Page, Senior Economist at Lloyds Bank WBM.....

Breakingviews: Deutsche's profit miss isn't a blip
July 25 - Deutsche Bank's capital and job-cut plans still look less punchy than peers', says Breakingviews......

After China oil bid, should Canada still play Mr. Nice Guy?
July 25 - State-controlled CNOOC's generous $15 billion takeover bid for Canada's Nexen will likely be approved. But Canada should keep in mind how little market access its own companies get in China......

EDF uses athletes' energy to drive employees
July 25 - For EDF Energy sponsoring the Olympics isn't just about eyes on the brand, the company says it also enjoys powerful internal benefits from its association with athletes......

Reuters Today: Apple miss takes bite out of Asia suppliers
July 25 - Disappointing Wall Street's lofty expectations, Apple results are the bad surprise of the U.S. earnings season so far. The tech giant blames fans holding out for the next iPhone version......

Apple disconnected by upcoming iPhone
July 24 - Summary of business headlines: Apple results fall far shy of expectations; Netflix new subscriber numbers cause investors to tune out; AT&T profits beat as smartphone subsidies cut; Blue chips post third triple-digit loss in a row. Conway G.....

U.S. Day Ahead: Apple misses big time
July 24 - Apple reported earnings and revenues below expectations, sending its stock down in after market trading......

New doubts surface in Europe
July 24 - The euro fell to a more than two-year low against the dollar as weak euro zone data and a dimmer outlook for the region's strongest economies from Moody's further clouded the prospects for the common currency. Matt Cowan reports......

Apple shares undervalued?
July 24 - Apple has become the most valuable company in the world- but its true worth is a matter of debate ahead of the expected release of its next iPhone. Bobbi Rebell reports......

Breakingviews: LegalZooms pricey IPO
July 24 - Antony Currie and Breakingviews columnists discuss why lawsuit risks and low earnings make the online legal sites valuation look ambitious......

Top chefs share secrets of the powerful
July 24 - Elite tastemakers for the world's most powerful leaders are gathering in Paris to discuss the secrets of serving the creme de la creme. Joanne Nicholson reports.....

Trading at Noon: Corporate America weighs on Wall Street
July 24 - Wall Street is flat after misses from UPS, Whirlpool and a warning from Texas Instruments. Meantime investors await Apple's earnings......

Inflatable heat shield survives hypersonic stress test
July 24 - An experimental heat shield developed by NASA has survived a trip through Earth's atmosphere while travelling at hypersonic speeds up to 7,600 mph (12,231 kph). In a test flight, the Inflatable Reentry Vehicle Experiment (IRVE-3) successful.....

Zynga shares plunge, $22.8m loss could hurt Facebook
Zynga's stock has plummeted after the online game maker reported a loss in the second quarter, and the poor results could hurt Facebook, which reports its earnings on Thursday.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726.....

HMRC tells school children: Tell your teacher if a neighbour is evading tax
School children encouraged by HMRC to tell their teachers if they know of anyone "in their local area" who is not paying tax.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/21b67518/mf.gif' border='0'/><br/.....

Libor scandal: Barclays executive Jerry del Missier given 8.75m pay-off
Jerry del Missier, the former Barclays Bank executive blamed for orchestrating the interest-rate rigging scandal that cost the lender 290m, has walked away with a pay-off of almost 9m.<img width='1' height='1' src='http://telegraph.feedsportal.com.....

Alison Carnwath quits Barclays just as the going gets tough
Having irked shareholders with an unpopular bonus for Bob Diamond, the head of the bank's remuneration committee suddenly remembers all her "other commitments".<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/21b6.....

Britain Unleashed: David Cameron needs a change of heart - and some fire in his belly
Cameron should smash the status quo, says Allister Heath<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/21b669af/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/139263402208/u.....

Euro exit beats begging bowl, says Spanish elder statesman
The regional leader of Asturias in Spain has become the country's first major figure to call for a radical change of strategy and exit from the euro, unless monetary union is fundamentally reformed.<img width='1' height='1' src='http://telegraph.f.....

Yell shareholders hit as group considers options
The future for Yell Group shareholders did not look bright today after the struggling directories company said it was examining options which could dilute equity investors.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/5.....

Manchester United puts off US flotation amid market turmoil
Football club reportedly concerned about market volatility in America.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/21b5e59c/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/.....

GDP shock fall: UK growth in 2012 'inconceivable', warn economists
It is now "inconceivable" that the British economy will grow in 2012, economists warned, after a shockingly large fall in GDP raised the prospect of more stimulus from the Bank of England.<img width='1' height='1' src='http://telegraph.feedsportal.....

Why a eurozone break-up is just the sort of shock the UK needs
Forget the latest GDP figures, depressing reading though they undoubtedly make.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/21b5e59e/mf.gif' border='0'/><br/><br/><a href="http://da.feedsport.....

Tax break to spur 1.4bn investment in UK gas field
Centrica and GDF Suez are to develop a major North Sea gas field, creating up to 4,000 jobs, after the Treasury handed them a tax break.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/21b5de4a/mf.gif' border='0'/.....

Centrica to create 4,000 jobs following gas tax break
British Gas owner, Centrica, is to forge ahead with creating 4,000 jobs in the UK after the government unveiled a 500m tax break for the gas industry.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/21b3f559/mf.gi.....

Shock GDP estimate triggers doubt but economy is definitely ailing
Economists around the City were left scratching their heads on Wednesday as forecasts for second-quarter GDP came in shockingly wide of the mark.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/21b57608/mf.gif' bo.....

Apple: do believe the hype
It is strange for the tech giant to blame poor sales on rumour mill.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/21b5ed3f/mf.gif' border='0'/>.....

Apple: do believe the hype
It is strange for the tech giant to blame poor sales on rumour mill.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/21b5685f/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/13.....

ARM Holdings profits rise 23pc on smartphone demand
Soaring demand for Apple phones helps ARM defy chip slowdown.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/21b56861/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/139263358.....

Royal Bank of Scotland cuts interest rates for small businesses
State-backed lender RBS said it will use an emergency government scheme to cut the interest rates it charges on loans to small businesses.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/21b56864/mf.gif' border='0.....

BT investors rattled as European woes bite into sales
BT's Global Services division is a drag on revenues again.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/21b56866/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/139263358157.....

GlaxoSmithKline hurt by European price cuts
GlaxoSmithKline, Britain's biggest pharmaceutical company, has warned price cuts by austerity-ridden European governments is likely to erode any sales growth this year.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56830.....

4.5bn Intercity express train deal to create 900 jobs
Britain is to get a new train factory after the Government agreed a 4.5bn deal with Hitachi that will see the Japanese conglomerate supply the UK with 596 railway carriages.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/.....

Debt crisis: as it happened - July 25, 2012
The UK economy has shrunk by a shock 0.7pc in the second quarter, official statistics show, as Spanish officials are forced to deny that Germany is pushing the country to accept a 300bn bail-out.<img width='1' height='1' src='http://telegraph.feed.....

Debt crisis: live
The UK economy has shrunk by a shock 0.7pc in the second quarter, official statistics show, as Spanish officials are forced to deny that Germany is pushing the country to accept a 300bn bail-out.<img width='1' height='1' src='http://telegraph.feed.....

Debt crisis: Greece's bondholders could face more losses, says Berlin
One of Angela Merkel's close allies has raised the prospect of another round of write-offs on Greece's debt obligations in an effort to keep the struggling nation in the eurozone.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32.....

Lord Green: I have no case to answer over HSBC money laundering scandal
Government minister Lord Green has claimed he does not "have a case to answer" over the HSBC money laundering allegations that have emerged from his time at the head of the bank.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/327.....

Sandy Weill: the architect of megabanks says America should break them up
Sandy Weill engineered deal that made Citigroup world's largest bank.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/21b4a9ef/mf.gif' border='0'/>.....