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Tuesday 21 August 2012

UK Financial News on 2012-08-21

Swedish firm readies record private equity portfolio sale
Insurance group's planned divestment would be one of Europe's biggest.....

Calpers launches IPO governance boycott plan
Largest US pension scheme threatens to shun listings that give minority shareholders voting power.....

Rio gets the Olympics, London gets Ita
Brazilian asset manager gains FSA authorisation.....

Long-term views offer decade of outperformance
Consultant Towers Watson says investors are on course to outperform indices by two percentage points a year after the payment of fees.....

HBOS fund completes 1.5bn manager move
The pension fund has moved the money out of passive equities and bonds, and made new investments with active fund managers.....

UK banks could game BoE lending scheme
Market participants believe the Bank of England's funding-for-lending scheme could benefit banks without increasing lending to the real economy, the purpose for which it was designed......

Credit Suisse beefs up ETF team in bid for expansion
Second largest player in physical exchange-traded funds adds director and vice-president.....

Winters builds team to target real estate debt market
Ex-JP Morgan banker's Renshaw Bay boutique has made several hires.....

Does the era of the 1 trade beckon?
If trade sizes continue to decline at the current rate they would fall beneath the £1 benchmark by 2036, according to analysis of LSE data.....

Surprise increase in UK borrowing
The UK government borrowed 600m to cover a budget shortfall in July, usually a good month for tax receipts, leading to fears it will fail to cut borrowing this year......

Go-ahead for first UK 4G service
The telecoms regulator allows the owner of Orange and T-Mobile to launch 4G services, meaning faster mobile downloads could arrive in the UK earlier than expected......

Soros buys stake in Man United
The billionaire investor George Soros buys a stake in Manchester United football club, according to a US regulatory filing......

Best Buy rocked by profit plunge
Struggling US electronics chain Best Buy suspends its profit guidance for the year after a dramatic fall in earnings......

Virgin launches domestic flights
Virgin Atlantic is to introduce a new short-haul service between London Heathrow and Manchester from next March - the airline's first domestic route......

Dell warns of tough third quarter
Dell says the "uncertain economic environment" means it expects third-quarter revenue to be down from 2% to 5% on second-quarter levels......

Facebook investor cashes in stake
One of Facebook's earliest backers, the venture capitalist Peter Thiel, sells most of his stake in the social network, making a profit of almost $400m......

Samsung boosts US iPad chip plant
Samsung invests $4bn into a factory in Texas that makes chips for mobile devices including Apple's products......

Spain's borrowing costs decline
Spain's short-term borrowing costs fall, boosted by hopes that the European Central Bank will soon start buying the country's bonds......

BT hit by cloud gaming shake-up
UK telecoms group BT says it expects to lose the millions of pounds of investment it put into the cloud gaming firm OnLive......

Google told to reveal influencers
A US judge orders Google to identify consultants and other commentators it has financial ties to after it "failed" to meet his original deadline......

Bank charges challenged by Which?
Consumer group Which? says there are large variations between banks in the cost of "free" current accounts......

Glencore warns over Xstrata deal
Glencore's chief executive rejects demands by a key shareholder of Xstrata to improve terms ahead of a proposed merger with the miner......

Thousands call for Virgin rethink
More than 25,000 people sign an e-petition calling for the government to keep Virgin Rail services on the West Coast Mainline......

Row over MPs' alleged tax dodge
Tax inspectors raise concerns over MPs claiming accountancy fees on expenses, but Parliament's watchdog says they are a legitimate "business cost"......

Apple most valuable company ever
Apple becomes the most valuable company of all time, with a market value of $623bn (397bn), surpassing Microsoft's record......

New rules for charity fundraisers
UK charities face fines of at least 1,000 if their street fundraisers breach new rules designed to protect members of the public......

HMRC wins big tax avoidance cases
HM Revenue and Customs has trumpeted three victories in the courts last month against complex tax avoidance schemes......

Mortgage lending rebounds in July
Total mortgage lending rose in July to the highest level so far this year, but the Council of Mortgage Lenders warned that the property market was still flat......

Sell best council houses - No 10
Councils should consider selling off their most expensive houses to build more cheap homes, says Downing Street......

Greece under pressure over cuts
Greece must stick to its bailout conditions, Germany says, at the start of a week in which Greece is expected to ask for more time to make agreed cuts......

Thai economy outpaces forecasts
Thailand's economy grew by more than forecast in the second quarter of the year as robust domestic consumption helped offset a decline in exports......

Belize close to default on debt
Belize is in danger of defaulting on its debt after it missed a $23m payment to bondholders that was due on Monday......

China's CNOOC profits fall 19%
China's largest offshore oil and gas company, CNOOC, posts a drop of 19% in profits in the first half of the year, after the closure of its biggest oil field......

Maruti Suzuki's factory reopens
Maruti Suzuki's car factory in India's Haryana state reopens, after a month-long lock-out following violent clashes......

China online firms merger backed
Shareholders of China's online video firms, Youku and Tudou, approve their plan to merge and create the biggest online video firm in China......

Premiership trial new video rules
Premiership Rugby will trial greater use of video technology for the new season in games broadcast live on television......

VIDEO: Is free banking in the UK a myth?
Many bank customers are paying hundreds of pounds in charges for their current accounts, which has led the consumer group Which? to say its researchers have "shattered the myth" of free banking......

AUDIO: Petrol retailers join fuel tax row
The chairman of the Petrol Retailers Association told 5 live why they had joined with the Taxpayers' Alliance......

AUDIO: Getting rid of cash in hand culture
Christian Fraser reports from a Belgium where a system of service vouchers is in place to avoid cash in hand......

VIDEO: Virgin announces domestic flights
Virgin has announced it wants to run three flights a day between London and Manchester, with further plans for more services......

VIDEO: Teen invents cancer test using web
US high schooler Jack Andraka invents advanced pancreatic cancer test using search engines and free online science papers......

VIDEO: Police seize millionth uninsured car
The police say they've seized the one millionth uninsured car, in a crackdown that began in 2005.....

VIDEO: UK public borrowing disappoints
The UK government borrowed more than expected in July, traditionally a good month for tax receipts, the Office for National Statistics said......

VIDEO: Greece under pressure over cuts
Greece must stick to its bailout conditions, Germany says, as Greece looks set to ask for more time to make agreed cuts......

Algorithms that can help us spend
How algorithms tempt you to spend, spend, spend.....

Bangladesh shipbuilders in export push
Bangladesh's growing shipbuilding industry.....

Investors wary after mining deaths
The risks of mining come under the spotlight.....

How Americans view wealth and inequality
How Americans view wealth and inequality.....

U.S. Day Ahead: Counting down to Fed minutes
Correspondent Alister Bull says minutes from the Fed's last meeting will tell us how far we are from more action......

Trading at Noon: U.S. stocks hit 4-year high
Aug 21 - The S&P 500 has risen nearly 3 percent so far in August as investors continue to hope that central banks will act in the near future......

Russia calls time on alcohol adverts
Aug. 21 - Russia has banned outdoor ads and TV commercials for alcohol, with a further ban covering print ads from January, in an attempt to curb alcohol consumption. Ivor Bennett reports......

Breakingviews: Rogue regulator?
Aug 21 - Jeffrey Goldfarb talks to Breakingviews columnists about the ongoing fallout from Standard Chartered's settlement and the trouble with the lack of coordination among U.S. financial watchdogs......

Europe Day Ahead: EU shuttle diplomacy fuels crisis hopes
Aug. 21 - Europe's leaders are preparing for a series of talks which are fuelling hopes for progress in resolving the debt crisis......

Glencore Xstrata "not a must-do deal"
Aug. 21 - Stronger than expected first half results could see Glencore dig its heels in over the price it will pay for miner Xstrata. Joel Flynn reports......

Russia wheat export ban fears over drought
Aug. 21 - The wheat harvest is beginning in central Russia, but drought has damaged the crop, leaving farmers little grain to sell abroad and Russia is mulling a grain export ban. Joanna Partridge reports......

ECB intervention optimism
Aug. 21 - Global stocks rally to 3-1/2-month highs and the euro hits a seven-week peak against the U.S. dollar on hopes the European Central Bank will soon start buying Spanish and Italian bonds to contain the debt crisis. Jamie McGeever reports......

Wealth Strategies: Retail investor should stay clear of IPOs
Aug. 21 - Sageworks CEO Brian Hamilton says the poor performances of IPOs like Facebook and Groupon should serve as a warning sign to retail investors, but points out good companies can still come to market......

3XSQ: Best Buy lacking buyers, sales decline
Aug 21 - Shares of Best Buy fell 9 percent after the electronics retailer cut its fiscal-year profit outlook citing lower expectations for sales, and suspended its share buybacks for the year......

U.S. Morning Call: 'Apple' of investors' eye breaks record
Aug 21 - Apple's market value climbed past $623 bln a day before the tech giant and Samsung prepare closing arguments in a heated patent trial......

Market Pulse: Platinum to peak as euro auto demand wanes
Aug. 21 - Supply issues in South Africa have pushed platinum prices sharply higher, but the rally may be about to fizzle out. Demand is weak and end-users have plentiful stocks. Gold is also close to peaking......

Russian business underwhelmed by WTO entry, says HSBC
Aug. 21 - After 18 years of tortuous negotiations, Russia is joining the World Trade Organisation, but HSBC's chief Russia economist, Alexander Morozov, says local businesses do not expect big benefits......

Reuters Breakingviews: Glencore leaves bid on skid row
Aug. 21 - Resistance to improving the terms of the $30 bln merger with Xstrata appears to be hardening at Glencore, though don't rule out a last minute sweetener, says Breakingviews......

Telekom Austria banks on Carlos Slim backing
Aug. 21 - Mexican tycoon Carlos Slim is set to take a stake in Telekom Austria, but with the telco's share price sliding how robust is the deal? We ask Telekom Austria CEO Hannes Ametsreiter......

China's private jet pipe dreams
Aug. 21 - Even for Chinese with millions of dollars to burn, buying a jet is no easy task. Red tape, poor infrastructure and sky-high taxes are stalling growth in the country's business jet industry......

Reuters Today: Apple climbs to the top of the tree
Aug. 21 - Apple becomes the most valuable company ever, its market cap of $623 bln surpassing the record set by Microsoft at the peak of the 1999 dot.com boom. Plus, a euro zone reality check looms......

No 'big bang' WTO boost for Russia - Lamy
Aug. 21 - Russia formally joins the World Trade Organisation after an 18-year campaign on Wednesday. Director-General Pascal Lamy says don't expect short-term economic gains from accession......

Apple breaks record, market fatigued
Aug 20 - Summary of business headlines: Apple now the most valuable company in history; CME takes European fight to Deutsche Boerse, NYSE Euronext; Best Buy picks CEO; Lowe's low forecast. Conway G. Gittens reports......

What's goosing gas prices
Aug 20 - As Labor day weekend approaches, a variety of factors are driving gasoline prices higher, at a time they usually head south. Bobbi Rebell reports......

U.S. Day Ahead: Patent trial win-win for Apple
Correspondent Poornima Gupta says not even a loss would hurt Apple's stellar share performance......

No end to mine crisis for Lonmin
Aug. 20 - The owner of a South Africa platinum mine where 34 striking miners were shot dead by police remains under pressure despite a third of the mine's workforce returning. Ivor Bennett reports......

Trading at Noon: Apple now most valuable company in history
Aug 20 - Shares of Apple rose to a new record high of $664 per share and hit $622 bln in market cap, making the tech giant the most valuable public company in history......

Breakingviews: Not the same as cash
Aug 20 - Richard Beales and Breakingviews columnists discuss the regulatory changes that the $2.7 trln U.S. money market fund industry is resisting......

Tesco's virtual grocery store
Aug. 20 - Many of us are increasingly shopping online or on our smartphones, but UK consumers wont have ever visited a virtual store. Britain's biggest retailer, Tesco, has just trialled its first virtual shop at Londons Gatwick airport where instead.....

Glencore merger with Xstrata not a 'must-do' deal, says Glasenberg
The chief executive of commodities trading giant Glencore prepared the City for the failure of the deal of the year as he said his company's planned merger with FTSE 100 miner Xstrata is not a "must-do deal".<img width='1' height='1' src='http://t.....

ITV in talks with BT to show Premier League games
ITV could show live Premier League football matches for the first time in its history under a tie-up with BT, it can be revealed.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2298d315/mf.gif' border='0'/><.....

Premier League tie-up is a good tactical move for BT and ITV
News that BT and ITV are in talks about sharing the telecom group's Premier League football rights suggests all sorts of intriguing possibilities for the two companies.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56830.....

China bubble in 'danger zone' warns Bank of Japan
China risks a repeat of Japan's boom-bust disaster 20 years ago as exorbitant property prices combine with a demographic tipping point, a top Japanese official has warned.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56.....

Building bridges and airports won't solve the UK's key problem of household debt
Unlike Team GB, the UK economy has made no progress since 2008. Quite the reverse.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2298745d/mf.gif' border='0'/><br/><br/><a href="http://da.feedsp.....

The Coalition must really go for growth
Disappointing public spending figures for July and the CBI's declining factory orders index provide a clear warning to the Treasury that a rethink is required on how the economy is being managed.<img width='1' height='1' src='http://telegraph.feed.....

Q and A: What you need to know about 4G spectrum
Mobile operators are at loggerheads over spectrum, the airwaves they will need to launch 4G services in Britain. Katherine Rushton runs through the facts.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2298c6bf/m.....

Everything Everywhere gets up to a year's head start in 4G race
Britain's biggest mobile phone operator, Everything Everywhere, has been given up to a year's head start in the race to launch 4G services and the chance to make a major grab for new customers.<img width='1' height='1' src='http://telegraph.feedsp.....

Banks favoured on hopes debt crisis resolution is near
Investors should snap up RBS shares as a solution to Europe's debt turmoil moves closer, Liberum Capital has advised.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/22983507/mf.gif' border='0'/><br/><.....

Essar Energy investors told to vote down Indian billionaire chairman
This is all Essar Energy needs. After losing its chairman to "criminal conspiracy" charges and then 60pc of its shareprice in a year, the Indian oil giant is now feeling the heat of London's corporate governance rules.<img width='1' height='1' src.....

Essar Energy investors told to vote down Indian billionaire chairman
THIS is all Essar Energy needs. After losing its chairman to "criminal conspiracy" charges and then 60pc of its shareprice in a year, the Indian oil giant is now feeling the heat of London's corporate governance rules.<img width='1' height='1' src.....

Debt crisis: financial markets rise on hope of decisive action by ECB and Brussels
Global markets rose and borrowing costs of Europe's sinner states dropped as traders bet that deadlock over debt crisis may shift decisively within days.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2298d020/mf.....

Debt crisis: financial markets rise on hope of decisive action by ECB and Brussels
GLOBAL stockmarkets rose and the borrowing costs of Europe's sinner states dropped as traders bet that the political and economic deadlock over debt crisis may shift decisively within days.<img width='1' height='1' src='http://telegraph.feedsporta.....

Afren strikes oil as profits surge 621pc
Afren, a lesser known UK oil and gas company, reminded investors yesterday just how much it pays to be in be in the energy business.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/22982e90/mf.gif' border='0'/>.....

Johnston Press revenue down 8.2pc
Johnston Press, publisher of The Yorkshire Post and The Scotsman, saw revenue fall 8.2pc in the half-year, amid declining print advertising and newspaper sales.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2298.....

RBS wins Scottish interest rate swap mis-selling case
The Royal Bank of Scotland has won an interest rate swap mis-selling case against a small Scottish property developer.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/22982e9d/mf.gif' border='0'/><br/><.....

Glencore's Ivan Glasenberg ready to walk away from Xstrata
As Glencore prepares the City for the failure of the deal of the year, what next for the FTSE 100 commodity giant and its target Xstrata?<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/229827b7/mf.gif' border='0'.....

Hedge funds are a 'limited' risk, says FSA
The latest survey of hedge funds by the FSA has concluded they pose little risk to the financial system.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/22982ea1/mf.gif' border='0'/>.....

Hedge funds are 'limited' risk, says FSA
The latest survey of hedge funds by the FSA has concluded they pose little risk to the financial system.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/22979d1d/mf.gif' border='0'/><br/><br/><a .....

Steel group Severfield-Rowen suffers squeezed margins
Structural steel group Severfield-Rowen is suffering squeezed margins as competition on projects intensifies amid public sector spending cuts and weak demand for construction.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/.....

Debt crisis: as it happened - August 21, 2012
Quitting the euro is not an option according to the Finnish president, who said leaving the eurozone would not help resolve the economic crisis plaguing the currency bloc.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56.....

Heritage Oil soars after it scraps rights issue
Heritage Oil shares jump 22pc after it calls off a rights issue following a deal with Tony Hayward's Genel<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/22979d21/mf.gif' border='0'/><br/><br/><.....

Lonmin may raise new money from investors
Platinum miner Lonmin has confirmed that the deadly dispute at a mine in South Africa could result in a rights issue.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2298317d/mf.gif' border='0'/>.....

Lonmin may raise new money from investors
Platinum miner Lonmin has confirmed that the deadly dispute at a mine in South Africa could result in a rights issue.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2297a605/mf.gif' border='0'/><br/><.....

Housebuilder Persimmon has strong first half
Persimmon's focus on family homes helped to secure a successful first half for the housebuilder, while the Government's scheme to help first-time buyers also drove sales.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568.....