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Tuesday 18 September 2012

UK Financial News on 2012-09-18

Buyout firms plan debt-funded dividend drive
Investors balk at return of controversial practice of recapitalising through the issue of high-yield bonds.....

Deutsche Bank takes knife to corporate finance
German bank cuts several high-profile bankers with managing directors said to be bearing the main brunt.....

Where are Lehmans European bankers four years on?
New research shows less than half of the US firm's London bankers are no longer FSA-registered four years after its collapse.....

Buyside laments over-the-counter liquidity drought
Liquidity in the OTC markets reported to be in a 'dire' state as dealers steadily reduce their marketmaking activity.....

Pressure grows to scrap Scargill pension ruling
Towers Watson calls for judicial review of 1984 court decision that has influenced trustees' investment strategies for a generation.....

Bradley departs JP Morgan amid fears of Christmas bloodbath
Managing director is among a string of senior bankers with private equity-related positions to have left so far this year.....

Dark pool chiefs exit Icap
Departures come after the interdealer-broker closed its pan-European multilateral trading facility BlockCross.....

Former Nomura traders reunite at hedge funds
LindenGrove Capital and Occitan Capital Partners build investment teams with former senior colleagues from bank.....

EU Council proposes trading tape tender
Move marks latest effort to end five-year spat over how trading data is reported and aggregated.....

ETFs to resume sky-high trajectory
BlackRock chairman Larry Fink expects assets in the sector to nearly double to beyond $3 trillion in 2015.....

Inflation rate falls back to 2.5%
The annual rate of inflation in the UK, as measured by the Consumer Prices Index, falls to 2.5% in August, due to smaller rises in furniture, clothing and gas prices......

Fedex warns of weakening economy
Global shipping service company Fedex cuts its full-year profit forecast, warning that the global economy is continuing to weaken......

Manchester United's revenue falls
Manchester United's annual revenue falls after last season's early elimination from the Champions League, but net profits rise thanks to a tax credit......

SA miners 'to go back to work'
Striking miners at a Lonmin platinum mine in South Africa will return to work on Thursday after accepting a pay offer, mediators and reports say......

Key party quits India government
A key regional party pulls out of India's governing coalition over its decision to open up the retail sector to global supermarket chains......

Fears grow over Japan-China trade
Fears grow over the possible economic impact of the dispute between China and Japan if the row over islands in the East China Sea is not resolved soon......

Electronic Arts creates 300 jobs
Games company Electronic Arts creates 300 new jobs at its European customer service centre in Galway, in the Republic of Ireland.....

Bank account exclusion 'rethink'
Banks must "look again" at financial inclusion after new bankrupts saw the end to a choice of bank accounts, consumer minister Jo Swinson says......

Lawyers face tax dodging scrutiny
Tax inspectors are to target the legal profession among others during their latest trawl for suspected tax dodging......

Uganda confirms new oil deposits
Uganda increases the estimates of the country's oil resources by 40%, or one billion barrels, thanks to new discoveries......

Debenhams sales rise bucks market
Department store Debenhams reports a rise in sales despite what it calls "extremely challenging market conditions"......

Blacks knocks JD Sports profits
JD Sports announces a sharp fall in half-year profits due to losses at its Blacks Leisure chain and the cost of moving warehouses......

Two-speed housing market persists
House prices continued to accelerate much quicker in London than the rest of the UK, latest figures show......

Spanish bank bad debts at record
Some 9.9% of loans by Spain's banks are now in arrears, according to central bank figures, the highest bad loan ratio since records began......

Digital book sales soar in the UK
Sales of digital books show impressive signs of growth, but some booksellers still face an uncertain future......

iPhone orders boost Apple shares
Apple shares have closed at a record high of almost $700 as the firm receives two million pre-orders for its newly unveiled iPhone 5......

Brokerage boss admits $100m fraud
The founder of US futures broker Peregrine Financial Group pleads guilty to a massive fraud involving 24,000 customers in the US state of Iowa......

Bankrupts face account shut-out
People recovering from bankruptcy will no longer have a choice over where they can access a bank account, as Co-op withdraws from the market......

HSBC to allow Post Office access
HSBC becomes one of the last major banks to allow customers to use the Post Office counter network for basic transactions following government criticism......

Universal credit plans 'on track'
The government dismisses calls to delay the introduction of the universal credit benefit system, amid concerns over payments and IT systems......

Obama and Romney duel over China
Barack Obama and Mitt Romney spar over Chinese trade relations, as the White House accuses Beijing of illegally subsidising car exports......

India makes move to boost lending
India's central bank lowers the amount of money that banks need to keep in reserve, in a bid to boost lending and spur domestic demand......

Fortescue shares up on debt deal
Shares in Fortescue Metals Group surge after the Australian miner secures a $4.5bn (2.8bn) credit facility to pay down debts......

Treasury 'slow' on Northern Rock
The Treasury's most senior civil servant has told MPs the government should have been quicker to nationalise Northern Rock following its collapse......

Hamleys sold to French toy group
The 250-year old toy chain Hamleys has been taken over by a French toy retailer for a reported 60m......

Ex-RFU chief scolds English clubs
Ex-RFU chief Martyn Thomas says Celtic nations must fight the 'bully' tactics of English and French clubs in the Heineken Cup row......

World Cup in Olympic Stadium link
The 2015 Rugby World Cup could include matches at London's Olympic Stadium, alongside football stadia......

Berekum dismiss bribery allegation
Berekum Chelsea angrily deny a report that they were offered money to lose their final African Champions League group game......

VIDEO: Man Utd revenue falls to 320m
Manchester United has reported a 3.3% fall in revenue to 320.3m ($520m) for the year to 30 June, after its early elimination from the Champions League last season......

VIDEO: Belfast rides cruise liner wave
Belfast has become one of the world's fastest growing destinations for cruise liners and is enjoying a welcome boost to its economy......

AUDIO: S Africa 'must diversify' economy
South Africa needs to diversify its economy, away from mining, argues Moeletsi Mbeki, of the country's Institute of International Affairs......

VIDEO: Fedex cuts full-year profit forecast
Global shipping service company Fedex has cut its full-year profit forecast, warning that the global economy is continuing to weaken......

VIDEO: A look at Motorola's new Razr i
The BBC's Rory Cellan-Jones takes a look at Motorola's Intel-powered smartphone......

VIDEO: Inflation increase slows to 2.5%
The latest figures from the Office of National Statistics show the rate of increase in inflation has slowed to 2.5%......

VIDEO: Benefits inflation link may end
The government is considering ending the automatic annual increase in benefits in line with inflation, sources have told BBC Newsnight......

AUDIO: Benetton on 'revamping' the brand
The clothing company Benetton is inviting unemployed 18-30 year olds to submit ideas that will change their communities, with the 100 winners getting 5,000 euros each. Alessandro Benetton explains how he hope to "revamp" the brand......

Will the rich flee France's 75% tax rate?
Will high taxes make the rich leave and never come back?.....

Do low rates help boost growth?
Is it safe to cut interest rates to bolster growth?.....

Is teleworking driving us crazy?
Is teleworking from home driving us crazy?.....

Young Asians making their mark on Australia
How Australia's Asians are subtly changing the country.....

Past philanthropists: How giving has evolved
How philanthropy has evolved since Carnegie's day.....

U.S. Day Ahead: Investors to get housing recovery evidence
Sep 18 - IFR says we should see existing home sales rise to 4.55 million units as the property market slowly gets back on its feet......

Ford CEO: European car production won't hit previous highs
European car production will rebound but will not hit previous highs......

Lonmin strikers accept pay offer
Sep 18 - Striking miners at Lonmin's Marikana mine in South Africa accept a pay offer to end a six week-long violent strike, though some say it may not have come soon enough to prevent long-term damage to the industry. Joel Flynn reports......

Court bans topless Kate pictures
Sep 18 - A French court has banned a gossip magazine from further publishing topless photographs of the wife of Britain's Prince William, the former Kate Middleton. Andrew Potter reports......

Quick fix material is design winner
Sep 18 - The founder of a London-based company named Sugru, which makes a material that can be used to fix and modify a range of products, wins a top design award. Matt Cowan reports.....

Trading at Noon: FedEx cuts 2013 profit view on slow economy
Sep 18 - FedEx lowered its fiscal 2013 profit target, saying earnings could slide as much as 6 percent for the year......

Breakingviews: Mortgage schmucks
Sept 18 - Antony Currie and Agnes T. Crane discuss how Fannie Maes inept $512 mln home loan deal with Bank of America further emphasizes the inadequacies of U.S. housing finance......

Investors increase pressure on Spain
Sept. 18 - Investors pile pressure on Spain to request aid and trigger an ECB bond-buying programme as the 10-year benchmark bond rises above 6 percent. Sonia Legg reports......

Europe Day Ahead: BoE to give clues on stimulus thinking
Sept. 18 - With the UK set to emerge from recession in the fourth quarter, the BoE is expected to extend its easing programme, Saxo Bank's Nick Beecroft says the improving climate makes more action less likely......

European defence super-merger hits turbulence
Sept. 18 - Talks to create a new European defense giant have entered a perilous political phase, with national concerns growing over security and jobs if BAE Systems and EADS merged. Andrew Potter reports.....

Wealth Strategies: Opportunities in Indonesia, Korea
Sep 18 - Wells Fargo's Paul Christopher says investors should be cautious of China and India, but thinks Indonesia and South Korea will benefit from strong domestic spending, insulating them from global issues.....

3XSQ: Apple tries to take out $700 mark
Sep 18 - Apple stock approaches $700 as another brokerage upgrades its price target......

A Conversation with Justice Scalia & Professor Bryan Garner
EIC Stephen Adler......

Mali's surprise cotton and gold boom
Sept. 18 - Mali's cotton and gold industries are still pushing the economy forward despite political chaos reigning in the country, and the tourism industry being brought to its knees. But lack of new investment and frozen foreign aid will start to b.....

Market Pulse: oil steadies after mystery $5 slide
Sept. 18 - The surprise fall in oil prices at the start of the week is not down to any fundamentally bearish shift, and was probably caused by computer trading, says Simon Wardell of IHS Global Insight.....

No backing down in South Africa strikes - Gold Fields CEO
Sept. 18 - Gold Fields CEO Nick Holland says the company won't bow to the demands of striking miners, and can tough out the dispute no matter how long it lasts......

Breakingviews: Romes next battle
Sept. 18 - Rome has declared war on Italys productivity gap, but without the pressure of the financial markets there is the risk of slipping back to business as usual says Breakingviews.....

Japan share prices hurt as companies hunker down in China
Sept. 18 - Growing anti-Japanese protests in China over a group of disputed islands could have serious repercussions for the Asian powerhouses' business and investment relationship......

Witness: Worried in Shanghai
Shanghai senior correspondent Kazunori Takada gives his perspective as a Japanese resident of Shanghai, one of many Chinese cities to be rocked by anti-Japan protests......

Reuters Today: Japan-China spat reignites
Sept. 18 - Japanese businesses shut their shops and factories in China as the two countries' territorial dispute deepens, and a sharp drop in crude prices has market-watchers puzzled......

Brain scanner may help "locked in" people communicate
Sept. 18 - People unable to speak through paralysis may one day be able to spell out their thoughts with technology being developed by Dutch scientists. The brain-scanner measures different levels of brain activity and associates each level with a le.....

U.S. Morning Call: Stock futures signal a continuing drop
Sep 18 - Stock futures dipped for a second day and oil also slipped to around $113 a barrel, extending the previous session's steep slide......

U.S., China lock horns over trade
Sept 17 - The U.S. is filing a trade complaint against China alleging it pays unfair subsidies to its auto industry. China has retaliated with a complaint of its own. Analysts disagree whether the move was simply presidential politics or business, as.....

Wall Street rally takes Monday pause
Sept 17 - Summary of business headlines: Wall Street's Monday blues continue as manufacturing data and China-U.S. trade spat give reason to pause after run-up; Apple shares hover near $700 record; Occupy Wall Street returns. Conway G. Gittens reports.....

U.S. Day Ahead: FedEx results to confirm recovery woes
Sep 17 - Analysts will want to know where FedEx is hurting when it releases its latest results. The company has already cut its outlook citing economic weakness globally......

Saudi Arabia ready to step up oil production to counter price spike
Saudi Arabia has signalled it is prepared to step up oil production to prevent the price of crude hurting the fragile global economy.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2390f65b/mf.gif' border='0'/>.....

No surprises George Osborne, just make Paul Tucker the next Bank of England Governor
Alistair Darling has likened the Bank of England, as envisaged under the Coalition's regulatory reform, to a "structure that is reminiscent of Louis XIV's court of the Sun King".<img width='1' height='1' src='http://telegraph.feedsportal.com/c/327.....

Beijing hints at bond attack on Japan
Row over disputed Senkaku/Diaoyu islands takes another twist.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/23904e20/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/144543259.....

Tobacco shares soar as investors get back in the habit
British American Tobacco and Imperial Tobacco were among the best performing FTSE 100 companies.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/23906c3b/mf.gif' border='0'/><br/><br/><a href="ht.....

Debenhams shrugs off gloom of high street and weather
Debenhams has shrugged off a slowdown on the high street and Britain's wet weather to deliver like-for-like sales growth ahead of market expectations.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/238fbedc/mf.gi.....

Pentagon calls for more information from BAE Systems and EADS
The Pentagon has called for more information from BAE and EADS over their proposed 30bn mega-merger, suggesting the defence and aerospace companies have work to do to secure political backing for the deal.<img width='1' height='1' src='http://tele.....

Apple's iPhone 5 hits Volex shares
UK company issues profit warning after Apple changes phone charger.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/23906c3c/mf.gif' border='0'/>.....

Apple's iPhone 5 hits Volex shares
Apple's iPhone 5 may have smashed sales records but not everyone is benefiting from the success of the new device.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/238fbee6/mf.gif' border='0'/><br/><br/.....

Bank of England could force banks to increase buffers under Treasury plans
The Bank of England will have the power to force lenders to increase capital buffers against bad debts if it believes financial stability could be at risk, the Treasury has proposed.<img width='1' height='1' src='http://telegraph.feedsportal.com/c.....

Race for the Governor: Paul Tucker - the insider whose chances dived with Libor-rigging
Until the Libor-rigging scandal erupted in June, there was one outright favourite to take over as Governor of the Bank of England when Sir Mervyn King's term expires: Paul Tucker.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32.....

Inflation change could deliver 3bn windfall
Pension deficits, train fares and water bills are in line to fall under plans to change the way inflation is calculated that could save the Government up to 3bn a year.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56830.....

Pay freeze at BHP Billiton as Australia cuts mining forecasts
The world's biggest mining company froze pay for its top staff, as Australia slashed its expectations for how much it would earn from its mining exports.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/238fbbdb/mf.....

UBS was aware of Kweku Adoboli's billion-dollar trading problems six weeks prior to arrest
UBS knew of $3.6bn black hole in trading accounts, a court heard.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/238fbbdc/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/14454.....

Mining and oil firms could be forced to disclose govenment payments
Campaigners claimed a major victory as MEPs backed new rules that would force mining and oil companies to reveal details of the payments they make to governments.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/23.....

Akzo Nobel boss takes leave due to 'fatigue'
The chief executive of Dulux paint maker AkzoNobel has been forced to temporarily step down from the supervisory board of the Dutch company due to "temporary fatigue".<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300.....

Irish buyers Stafford Group waits in wings of JJB deal if Sports Direct talks collapse
If JJB Sports fails to close its rescue deal with Sports Direct, the company could be broken up or sold to a private Irish conglomerate, Stafford Group.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/238f652a/mf......

Harvey Nichols owner Dickson Poon takes home 6m
The Hong Kong-based owner of Harvey Nichols has received a 6m payout from the luxury department store after it recorded a near-20pc rise in profits.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/238f652b/mf.gif'.....

Debt crisis: central bank action is work of the devil, says Germany's Jens Weidmann
The head of Germany's Bundesbank has raised eyebrows across Europe after he appeared to compare Mario Draghi's bond buying programme with the "devil's work".<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/238f652.....

Debt crisis: Bundesbank chief compares money printing to work of the devil
The head of Germany's central bank has defended his right to speak out about the need for a stable currency, even using a German literary classic to describe printing money to help governments as temptation from the devil.<img width='1' height='1'.....

Lonmin workers to return to work after accepting 22pc pay rise
Striking workers at the London-listed Lonmin platinum mine in South Africa have secured a 22pc pay hike and will resume work on Thursday, ending a six-week deadly wildcat strike.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/327.....

Debt crisis: as it happened, September 18, 2012
Jens Weidmann defends his right to speak out about concerns over ECB policy, and uses Faust's Mephistopheles to describe printing money to help governments as temptation from the devil.<img width='1' height='1' src='http://telegraph.feedsportal.co.....

Good News Britain: UK has to allow knowledge-based businesses to flourish
At IP Group we firmly believe that intellectual property and its commercialisation will be a vital component in the growth and future development of the UK economy.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/.....

There's never been a better time for the Government to be pro-capitalist
You would never have guessed it, given the generally low regard in which the City is held by the public these days, but Britain is becoming a more economically conservative nation, with growing opposition to welfare and redistribution and an increasi.....

Debt crisis: Spanish bad bank loans climb - live
Jens Weidmann defends his right to speak out about concerns over ECB policy, and uses Faust's Mephistopheles to describe printing money to help governments as temptation from the devil.<img width='1' height='1' src='http://telegraph.feedsportal.co.....

Indian ministers to resign over Tesco plan, raising fears over coalition
A key partner in India's ruling coalition has withdrawn support from the government and said its ministers would resign in protest over a plan to allow foreign retailers such as Tesco into the country.<img width='1' height='1' src='http://telegrap.....