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Friday 3 August 2012

UK Financial News on 2012-08-03

UK banks 'detached from society'
Banks became "detached from society" and still need to reconnect with their customers, the chief executive of Royal Bank of Scotland admits......

US economy adds 163,000 new jobs
The US economy adds 163,000 workers in July, according to official figures, but the unemployment rate inches up from 8.2% to 8.3%......

BA and Iberia group reports loss
The parent group of British Airways and Iberia reports a 390m euro ($476m; 306m) interim loss and warns of job losses......

Fuel costs drag Virgin into loss
Virgin Atlantic has reported an annual loss in the face of higher fuel prices, which it said had risen by one third......

Rajoy considers bailout options
Spain's implied cost of borrowing remains above 7% as Prime Minister Mariano Rajoy submits his budget plans to the European Commission......

Samsung rebuked by patent judge
South Korean tech firm Samsung to face "consequences" for publicising evidence banned from its patent trial versus Apple......

Haywire trader's shares stabilise
Shares in Knight Capital stabilise after falling by three-quarters following an IT glitch that caused its trading to go haywire......

Heineken seal Tiger Beer purchase
Dutch brewery business Heineken has secured a deal to acquire Asia Pacific Breweries and related assets owned by its parent company, in a deal worth $5.1bn (3.27bn).....

Company insolvencies still rising
The number of firms going into insolvency in England and Wales continued to rise in the second quarter of the year, official figures show......

Service sector 'slows in July'
The rate of output in the UK's services sector unexpectedly slowed in July, according to a survey......

Eurozone companies 'weak in July'
The eurozone's manufacturing and service sectors both shrank in July, according to an influential survey......

Toyota reports surge in profits
Toyota's profits surge in the first quarter boosted by strong sales in Japan and the US and a recovery from last year's natural disasters......

Sharp shares slump as losses grow
Shares in Japanese television maker Sharp drop 30% after it warns that losses this year will be eight times bigger than first thought......

BHP in $3.3bn writedown on assets
Miner BHP Billiton announces writedowns in shale gas and nickel assets of $3.3bn (2.1bn) and says its chief executive will forgo his 2012 bonus......

US resists losing control of net
The United States signals it would resist any effort to pass control of the internet from US bodies to a UN agency......

Nomura punished for trading flaws
Japan's Nomura is told to bolster internal controls by the country's regulators after it admitted some staff were guilty of insider trading......

LinkedIn beats analyst forecasts
Business-focused social networking website LinkedIn's quarterly profits beat expectations as Facebook shares slump another 4%......

Ferguson denies Man Utd windfall
Sir Alex Ferguson denies speculation that he stands to benefit financially from Manchester United's imminent share flotation in New York......

Facebook details 'false' accounts
Facebook estimates that more than 83 million of its 955 million active accounts do not represent real unique users......

'Slight growth' in construction
The UK construction sector unexpectedly saw slight growth in July, according to a closely-watched report, but new orders continued to decline......

Bank holds off from more stimulus
The Bank of England keeps interest rates on hold at 0.5%, and also holds off from any more stimulus measures......

RBS to pay 125m for IT glitch
Royal Bank of Scotland has reported a half-year loss of 1.5bn and is putting aside 125m to pay compensation for the recent breakdown of its IT systems......

JAL to raise $8.5bn in re-listing
Japan Airlines is planning a share sale two years after it received a government-backed bailout in one of Japan's biggest bankruptcies......

HMV chief executive to stand down
The chief executive of music, films and games retailer HMV, Simon Fox, is to step down next month after six years in the role......

Inter Milan in Chinese stake sale
Italian football club Inter Milan says that a group of Chinese investors will become its second-largest shareholder......

Commission assesses Gers payments
The SPL appoint an independent commission to rule on Rangers' alleged use of employee benefits trusts from 2000-11......

VIDEO: Under-employment increasing in US
Despite an estimated 10,000 jobs being created in the US during July, unemployment rates are expected to remain unchanged when the latest jobs reports is released on Friday......

AUDIO: Supermarket bags 'should cost 1'
Samantha Harding, of the Campaign for the Protection of Rural England and Judith Holder, author of Grumpy Old Women, discuss whether everyone should be charged a small fee to get a plastic bag with their shopping......

VIDEO: RBS 'has way to go' on bank glitch
RBS boss Stephen Hester has once again apologised for last month's computer meltdown.....

AUDIO: Did Draghi make the markets tumble?
The chief economist at brokers World First told 5 live what he made of the markets tumbling after Mario Draghi's speech......

AUDIO: The true cost of going for gold
Prof David K Forrest, from the University of Salford, explains how much it costs in terms of investment for a country to win a gold medal in the Olympic Games......

VIDEO: Markets turn to Draghi for way out
Many in the markets are now turning to Mario Draghi for a way out of the eurozone crisis.....

VIDEO: Troubled times for Sony
The BBC's Aaron Heslehurst on why Japanese electronics giant Sony has had to revise its net income forecast......

VIDEO: Adidas boss 'happy' with Olympic sales
Adidas says it has already hit its Olympics sales target......

Nick Symmonds: Olympic body, business brain
US Olympian Nick Symmonds on sports sponsorship by tattoo.....

Fixed-rate mortgages at less than 3%
Are there drawbacks to the new mortgage deals?.....

Bank's IT woes could be just the beginning
Bank's IT woes should be a warning to firms everywhere.....

Chinese medicine and its ancient practices
Chinese medicine and its ancient practices.....

U.S. Week Ahead: Knight Capital searches for white knight
Aug 3 - Come Monday Knight Capital may be back to square one; looking for cash to make up for its $440 million trading glitch......

Wealth Strategies: Retail investor doesn't trust the markets
Aug. 3 - The latest trading glitch at Knight Capital, coupled with other recent market malfunctions, has resulted in a hit to investor confidence and could results in immediate outflows from equity ETFs......

Reasons to still worry about jobs
Aug. 3 - The U.S. economy surprisingly added 163,000 jobs in July, the strongest payroll gain in five months, but a rise in the unemployment rate to 8.3 percent is only one reason to remain concerned about the labor market. Conway G. Gittens reports......

Obama says too many still jobless; Romney takes aim
Aug. 3 - President Barack Obama welcomes job data showing employers kept hiring in July, while Republican presidential hopeful Mitt Romney uses a campaign stop to take aim the president's record. Deborah Lutterbeck reports......

Trading at Noon: U.S. stocks rally; banks lead the surge
Aug 3 - Wall Street is moving higher after 4 days of losses, with Morgan Stanley up almost 6 percent......

Poor factory figures heighten euro zone worries
Aug. 3 - More misery for euro zone companies as a sharp drop in new orders in July forced them to cut staff. Joanna Partridge reports......

Breakingviews: The next $10 bln LBO?
Aug 3 - Richard Beales and Breakingviews columnists discuss a possible $10 billion-plus leveraged buyout of Laboratory Corporation of America, which would be the biggest since before the crisis......

Wealth Strategies: Jobs report obscures deeper problems
Aug 3 - Loomis Sayles vice chairman Dan Fuss says that, despite the better-than-expected July jobs report, there is still a skill mismatch in the U.S. employment market and further stimulus won't help that......

Europe Week Ahead: German debt auction, miners in focus
Aug. 3 - Germany holds a debt auction on Wednesday, while the Bank of England will release its inflation report and miners Xstrata and Rio Tinto will release their earnings reports......

Is speed killing the Street?
Aug 3 - Expect trading glitches to be the new normal says TABB Group Partner Alexander Tabb......

3XSQ: Nonfarm payrolls up, but jobless rate rises to 8.3%
Aug 3 - Employers in July hired the most workers in five months, but an increase in the jobless rate to 8.3% muddled the near-term outlook......

Saft Says: Good U.S. jobs report muddles ECB plans
Columnist James Saft says the good U.S. jobs report actually slows ECB action on economy. Saft adds, U.S. is not on brink of recession but jobs market is healing really slowly......

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......

Young Greeks go back to the land
Aug. 3 - Greeks fed up with their country's economic woes have set up an eco community on the island of Evia, where they plan to build a school of sustainable living. Joanne Nicholson reports......

Week Ahead for GSAM - 03.08.12
GSAM team......

Reuters Breakingviews: Europe's situation not all bad
Breakingviews Assistant Editor, Peter Thal Larsen......

Reuters Today: Top Stories and Analysis
Aug. 3 - A look at the early action in the European markets and the days hot stocks, as well as a final wrap-up of Asia trading......

Asia Week Ahead: The smartphone skirmish persists down under
Breakingviews strategist Wayne Arnold, alongside the ongoing clash of the titans, Apple and Samsung......

Retailers' new lesson plans
Aug. 2 - Retailers are trying out new kinds of promotions to score extra points this back to school shopping season. Bobbi Rebell reports......

Markets ask: how do you spell action?
Aug. 2 - Summary of business headlines: Stocks sell-off in the U.S. and across Europe after the ECB's "do whatever it takes" is more word than deed; Dark days for Knight Capital; Retailers enjoy sunny July sales. Conway G. Gittens reports......

Knight is looking for a white knight
Aug. 2 - Knight Capitals trading customers are deserting, its stock price is down 75 percent in two days and the Wall Street firm is looking for a savior after a technology glitch caused a $440 million loss. Conway G. Gittens reports......

U.S. Day Ahead: What the Fed will watch in July jobs report
The Fed will be paying close attention to a key level in tomorrow's job report, we tell you which one......

Wealth Strategies: Markets too much for retail investors
Aug. 2 - Securities lawyer Bill Singer says Knight's trading loss indicates market technology may be too far ahead of small investors and that regulators need to be on the ground to prevent future losses......

The new normal: Jobless in America
Aug 2 - Labor expert Kathy Krepcio describes the new normal job market for Americans which includes freelancing, holding multiple jobs and a whole lot of uncertainty......

Trading at Noon: Dark 'Knight' falls; super to stupor Mario
Aug 2 - Knight Capital stock dives over 50% after a trading glitch, and Mario Draghi's lack of action sends markets tumbling today......

Bob Diamond's daughter quits Deutsche Bank job
Nell Diamond could be back on the party circuit.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/22080f43/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/139264062032/u/3/f/568.....

'Cheap' National Express boss is given a bonus
National Express is boosting the pay of its chief executive Dean Finch, including handing him an extra performance-based share bonus currently worth 550,000, after deciding it hired him "on the cheap".<img width='1' height='1' src='http://telegrap.....

Kloppers forgoes bonus as BHP writes down shale gas
BHP Billiton has written down the value of its US shale gas assets by 1.8bn, prompting Marius Kloppers, head of the world's biggest natural resources group, to waive annual bonus.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32.....

Debt crisis: S&P downgrades 15 Italian banks
Ratings agency Standard & Poor's took ratings action on a range of Italian banks tonight, including downgrading 15 financial institutions, citing increased credit risk for the country's economy and banks.<img width='1' height='1' src='http://t.....

Debt crisis: as it happened - August 3, 2012
Spain inched closer to seeking a sovereign bailout as prime minister Mariano Rajoy opened the door to a request, but said he would first need to know the attached conditions.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f.....

New hopes on debt crisis boost markets
Global markets roared back to life today on hopes that Europe's leaders will make drastic efforts to stave off the worst of the debt crisis and amid evidence that the US economic slowdown has not been as sharp as feared.<img width='1' height='1' s.....

Debt crisis: Mariano Rajoy opens door to EU rescue - live
Spain inched closer to seeking a sovereign bailout as prime minister Mariano Rajoy opened the door to a request, but said he would first need to know the attached conditions.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f.....

Four billion reasons why Willie Walsh can sleep soundly at night
The most important number in the IAG results is not British Airways' 13m (10.2m) operating profit, the 25pc increase in fuel costs or even Iberia's 263m operating loss.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56830.....

Banks face 'wrenching times' warns RBS chief
Royal Bank of Scotland chief executive Stephen Hester has warned that lenders face "wrenching times" in the next few years after a spate of scandals.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/22073b36/mf.gif.....

Inmarsat reaches for the skies as blue-chips rocket higher
Satellite communications group Inmarsat was heading skywards today as the market welcomed news of a revival in the company's core maritime business.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/22073b37/mf.gif'.....

Growth slows in UK services sector
Britain's dominant services sector was unable to shrug off the bad weather and weak economy in July, as the sector grew at the slowest rate since December 2010.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2206.....

Rentokil Initial in talks to refinance debt
Rentokil Initial, the pest control and hygiene group, is to open talks about refinancing its 960m of net debt.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2206c8a7/mf.gif' border='0'/>.....

British Airways owner IAG plans for Spanish exit from eurozone
The parent company of British Airways and Iberia has drawn up advanced plans for what it would do in the event of a Spanish exit from the eurozone.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/22045d89/mf.gif' .....

Polish MP demands Spain pays back 16th century debt
King Philip II of Spain took loan from Queen Bona Sforza to finance war.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2205a718/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/.....

Knight Capital obtains credit line after IT glitch causes $440m loss
Firm fighting for survival after $440m trading loss caused by IT glitch.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/220599a0/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/.....

Spain inches closer to asking for bailout
Spain inched closer to seeking a sovereign bailout as prime minister Mariano Rajoy opened the door to a request, but said he would first need to know the attached conditions.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f.....

Richard Branson's Virgin Atlantic slumps to 80.2m loss
Soaring fuel costs and rising taxes have taken their toll on Virgin Atlantic as the airline slumped to an underlying loss of 80.2m.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/220525b3/mf.gif' border='0'/>&.....

US jobs data mixed in July: what the economists said
The American economy created more jobs than expected last month, but failed to return to the strong pace of hiring that created optimism at the start of the year. Here's how economists viewed the data.<img width='1' height='1' src='http://telegrap.....

Debt crisis: live
Markets take stock on Friday, a day after ECB president Mario Draghi fails to deliver immediate measures to tackle Europe's debt crisis and investors await key jobs figures from America.<img width='1' height='1' src='http://telegraph.feedsportal.c.....

US employment figures smash estimates but total jobless figure rises too
The American economy created more jobs than expected last month, though failed to return to the strong pace of hiring that created optimism at the start of the year.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s.....

Jeremy Hunt calls on Ofcom and OFT to probe Guardian's radio deal
Culture Secretary Jeremy Hunt has called on watchdogs Ofcom and the Office of Fair Trading to examine Guardian Media Group's 70m sale of its radio assets to rival Global Radio.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726.....

Tom Cruise film to create 500 jobs in UK
A science fiction thriller starring Tom Cruise and Emily Blunt is to be filmed at a Hertfordshire studio, creating 500 jobs.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/220511c2/mf.gif' border='0'/>.....

Start-ups not put off by high street woes
A struggling high street and declining disposable incomes have failed to put budding entrepreneurs off selling to consumers, with retail the most popular choice of sector for prospective business owners, according to Sage.<img width='1' height='1'.....

Independent owner Alexander Lebedev plans to 'give up' Russian businesses and fears jail
Alexander Lebedev, owner of the Independent newspaper, plans to "give up" his businesses in Russia after coming under pressure from the Kremlin, according to reports.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/.....

Personal insolvencies at a four-year low
Personal insolvencies have fallen to a four-year low, according to Insolvency Service figures.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/22034153/mf.gif' border='0'/>.....