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Monday 1 October 2012

UK Financial News on 2012-10-01

Ministers call Brussels to heel on regulation
Six member states of the EU, including Germany and the UK, have openly criticised the European Commission for ignoring advice on a new regulation.....

Former Chi-X Europe chief creates new start-up
Alasdair Haynes has founded a new trading venue that will compete head-on with the platform he used to run.....

Private equity titans consider IPO market return
Bankers say buyout trio lining up IPOs of European assets over next six months.....

German private equity prepares for hit from AIFMD
Germany's private equity market could be sharply curtailed by proposed rules that observers fear will set a dangerous precedent across Europe.....

Syntegra eyes steep valuation for Moleskine
Moleskine is best known for its notebooks that were popular with the 'lost generation' of Parisian-based writers and artists such as Ernest Hemingway.....

Benchmark maths generates endless rise in high pay
New research suggests remuneration committees' reliance on peer group benchmarking will lead to ever higher pay.....

Companies tap the private bond market
Unusually positive sentiment has put 2012 on track to be a boom year.....

Shadow banking label could deter financing
Allianz Global Investors chief warns asset managers could decide against offering much-needed financing to avoid shadow banking rules.....

Sunrise scores further hires from rivals
The London broker's ranks of approved persons have grown 7% in three months.....

JJB collapse sees 2,200 jobs shed
About 2,200 staff at JJB Sports are to be made redundant after the sports clothes and equipment retailer goes into administration......

EADS boss vows swift BAE decision
The chief executive of EADS calls a proposed $45bn (28bn) merger with the UK's BAE Systems a "great opportunity" and vows a swift decision on the merger......

Cautious welcome for pension move
New rules which will automatically enrol millions of low and middle earners into a workplace pension are given a cautious welcome by trade unions and employers......

Eurozone jobless at fresh high
Unemployment in the eurozone has hit a fresh high of 18.2 million in August, the EU statistics agency says......

US manufacturing 'shows gains'
US manufacturing activity gained after three months of contraction, according to the Institute for Supply Management's monthly survey......

Minimum wage change takes effect
A rise in the earnings of the lowest paid workers has come into effect, but athletes and hairdressers are likely to see their tax bill increase......

Greece 'in deeper 2012 recession'
Greece is predicting its economy will shrink by much more than previously estimated this year, while also seeing a sixth year of recession in 2013......

Xstrata board backs Glencore deal
The board of mining group Xstrata recommends that shareholders back the merger terms offered by commodities trader Glencore......

Defence firms seek merger backing
The chief executives of defence firms BAE and EADS seek political backing for their proposed $45bn (28bn) merger, as the deal receives another setback......

Personal borrowing still stagnant
The value of loans to individuals fell in August by 400m, Bank of England figures show, the third largest monthly drop on record......

Iata ups airline profit forecast
The International Air Transport Association raises its profits forecast for airlines in 2012 to $4.1bn, thanks to efficiencies and consolidation......

Doorstep lender tactic questioned
A BBC investigation finds a prominent doorstep lender extending credit to vulnerable clients, including a woman with mental health problems......

Finance sector activity 'falls'
The UK's financial services sector cut jobs in the third quarter of the year as activity levels fell, the CBI business organisation says......

Iran rial hits record dollar low
Iran's currency, the rial, falls as much as 18% on Monday to a record low against the US dollar, a decline caused in part by tightening sanctions......

Balls puts Labour focus on homes
Shadow chancellor Ed Balls is calling for a two-year stamp duty holiday to help kick-start growth - paid for by the sale of 4G mobile frequencies......

Japanese business mood worsens
Japanese businesses sentiment worsened in the three months to September, underlining the weakness in the country's economy......

Primark to sell CDs in UK stores
Clothing retailer Primark enters the music market and is to begin selling CDs in a selection of its UK stores......

Ikea regrets Saudi catalogue slip
The furniture giant says it regrets that women are completely absent from images in the Saudi version of its catalogue......

Euro manufacturing slump 'eases'
The downturn in the manufacturing sector in the eurozone eased slightly in September, according to a closely-watched survey......

China manufacturing shrinks again
Manufacturing in China has contracted for a second month, another sign of economic slowdown in the world's second largest economy......

Spain's debts to increase further
Spain's debt levels will increase further next year, the government predicts, putting Madrid under more pressure to trim spending......

Russia's World Cup budget soars
Russia reveals that its preliminary budget for holding the 2018 World Cup is almost twice what it projected when it won the bid in 2010......

VIDEO: Mervyn King's economic inspirations
The governor of the Bank of England speaks to BBC's economics editor Stephanie Flanders about three of the great thinkers of economics......

VIDEO: New generation of e-readers hit stores
With the first shipments of Amazon's Kindle Paperwhite and Kobo's Glo on Monday, the e-reader industry is going through a 'reboot'......

VIDEO: Flying rule changes 'raise crash risk'
The British Airline Pilots' Association (Balpa) says passenger safety could be at risk if plans to lengthen flying hours across Europe are brought in......

VIDEO: Pensions auto-enrolment begins
From Monday, hundreds of thousands of people are being automatically signed up to pension schemes by their employers......

VIDEO: Should Labour support general strike?
Ed Miliband can thank union support for becoming Labour leader but he is set to clash with left-wing union bosses fighting government spending cuts who are looking into organising a general strike......

VIDEO: Austerity hits hard for Spanish youth
The Spanish government has predicted that debt levels will rise as much as 90.5% of the country's total wealth in 2013 because of the money spent bailing out the banks......

VIDEO: Iranian currency hits record low
Iran's currency, the rial, has fallen as much as 18% on Monday, bringing it to a record low against the dollar......

VIDEO: Ed Balls calls for stamp duty break
Shadow chancellor Ed Balls is to call for 100,000 new affordable homes and a two-year stamp duty holiday for first-time buyers to kick-start the economy......

BAE Systems-EADS: The rationale
What is the rationale behind the BAE-EADS tie-up?.....

'Never forget your dreams'
Young people explain how they got their first job.....

Global youth unemployment: The numbers
How many young people around the world are unemployed?.....

The drive to make giving more effective
How do you measure the effectiveness of giving?.....

Cuts hit Spain's young hardest
The youth of Spain protest against high unemployment levels.....

Q&A: Pension automatic enrolment
The new automatic enrolment pension system explained.....

Cultural thirst drives premium tea boom in China
Cultural thirst drives China premium tea boom.....

U.S. Day Ahead: Get ready for Einhorn's next big short!
It's all about the next big short when hedge fund superstar and Greenlight Capital founder David Einhorn speaks at the Value Investing Congress in New York Tuesday morning......

Splunk to go kerplunk; Investor Buckley makes case for short
Oct 1 - Hedge fund manager Zack Buckley made the case for shorting data analytics company Splunk and believes the tech sector is overvalued in general......

Trading at Noon: Goldman Sachs gets the Midas touch
Oct. 1 - Shares of Goldman Sachs rise after Barron's says the stock could rise 25 percent in the next year......

Smart cars project wireless future at Paris Motor Show
Oct. 1 - For the next two weeks, car enthusiasts in Paris have the opportunity to see the future of automotive technology at the the Paris Motor Show. Among the highlights this year are a car with a built in movie projector and another which utilises.....

Breakingviews: Congress puts hope in Pandoras box
Oct 1 - Antony Currie and Breakingviews columnists discuss why a rare piece of bipartisan legislation in Washington could be a boon for the Internet radio companys stock......

Europe Day Ahead: Spain's Rajoy meets regional leaders
Oct. 1 - After meeting EU Commissioner Olli Rehn, Spain's Prime Minister Mariano Rajoy, faces the country's 17-regional leaders at a time when anti-austerity sentiment across the country is on the rise......

Empty property after Spain's burst bubble
Oct. 1 - Ruthless building contractors, banks offering attractive loans and locals blinded by a property boom. Thousands of properties stand empty since Spain's property bubble burst, and it left a bitter taste in the Murcia region. Joana Partridge r.....

3XSQ: 3M buying Ceradyne for $860 mln
Oct. 1 - Ceradyne's stock is soaring after 3M's announcement to purchase the armor and industrial components maker......

A step closer to a Glencore Xstrata deal
Oct. 1 - Mining group Xstrata has given its long-awaited blessing to a revised $33 billion bid from trader Glencore, bowing to investor pressure by changing the deal to ensure a payment plan to keep its top managers does not sink the tie-up. Hayley P.....

Euro Crisis Watch: Rehn in Spain as ECB looms
Oct. 1 - EU Commissioner Olli Rehn hails Spain's austerity drive, but still no formal aid request from Madrid. The focus turns to ECB and Mario Draghi on Thursday......

Breakingviews: Euro crisis a race against time
Breakingviews Editor Hugo Dixon.....

U.S. Morning Call: Slow global growth renews recession fears
Oct 1 - Poor manufacturing data in the euro zone and China is worrying investors, potentially signaling a new recession......

Market Pulse: $33B "Glenstrata" to give stocks an M&A boost
Oct. 1 - Xstrata's board gives the green light to a $33 bln merger with Glencore. Xstrata shares rise more than 3%, and the positive spillover could offer the FTSE an M&A boost in Q4......

Euro malaise hits Asian factory sector
Oct. 1 - Asia's manufacturers are continuing to struggle in the face of tepid demand from the United States and Europe, according to business surveys and data that underline the fragility of the global economy. Lisa Yuriko Thomas reports......

No China hard landing - Goldman Sachs' O'Neill
Oct. 1 - The slowdown in China growth is here to stay, posing challenges for previously strong sectors but there'll be no hard landing says Goldman Sachs Asset Management Chairman Jim O'Neill......

Breakingviews: Spains rose-tinted slip
Oct. 1 - Spains optimistic assumption in the amount of capital its banks will need for recapitalisation is another misstep in their approach to the crisis say Breakingviews......

Buy Thales, Sell BAE says SocGen's Khan
Oct. 1 - While the BAE/EADS marriage looks increasingly unlikely Zafar Khan, Societe's Generale aerospace and defence analyst, suggests other stocks that may benefit from industry consolidation......

German faith in Europe undented by debt crisis
Oct. 1 - On the streets of the German capital Berlin, support for closer ties between European nations is unwavering, despite scepticism over the bailouts for Greece and other weak economies......

Gloom under the gleam at Paris auto show
Oct. 1 - For all the razzmatazz, it's the threat of job cuts and plant closures that is the real story of this week's Paris car show, reports Julian Satterthwaite......

Reuters Today: Xstrata backs Glencore bid
Oct. 1 - Xstrata's board backs Glencore's takeover bid, Asia's factory sector struggles to shake off euro malaise and Europe stuns the U.S. in the Ryder Cup......

Are Germans becoming more euro sceptic?
Oct. 1 - German taxpayers will have to pay the biggest share of bailing out weaker economies as the debt crisis bites ever deeper, but on the streets of the capital Berlin, faith in closer European unity seems unscathed. David Sincock reports......

Small biz borrowing up across the board: PayNet
Oct. 1 - PayNet president Bill Phelan says small business lending has been posting consecutive months of gains, signaling the overall economy is on the upswing......

Progress and tradition collide in Warsaw's green oases
Sept. 30 - Owners of traditional Polish garden allotments in Warsaw are preparing for an environmental fight after the country's constitutional court ruled that developers should have the chance to build on hundreds of personal plots across the capit.....

Neighbours say farmer's biofuel is a gas
Sept. 30 - A Cuban farmer has taken an innovative approach to energy production and distribution by bagging the methane emitted by his pigs to share with neighbours. Tara Cleary reports......

Fed chief Ben Bernanke says stimulus is not a green light for 'bad fiscal policy'
Federal Reserve chairman Ben Bernanke has hit back against critics who accuse the central bank's stimulus plan of allowing the US to run a "bad fiscal policy".<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/24049.....

Why Germany must face up to its 1 trillion headache
Here's another fine mess the political hubris of the euro has got Europe into.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/24048a3a/mf.gif' border='0'/><br/><br/><a href="http://da.feedsporta.....

What next for Xstrata chief Mick Davis?
While Xstrata and Glencore dig in for the final push to achieve their 30bn mega-merger, attention is turning to the key spin-off from the deal: Mick "the miner" Davis.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300.....

Glenstrata fudges its 53bn merger - but at what cost?
The way Xstrata chairman Sir John Bond has handled the so-called merger with Glencore doesn't reflect well on either his independence or suitability to chair the enlarged group.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/3272.....

Prospect of investor rewards lifts Polymetal
The gold miner could pay a special dividend to investors, analysts said.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2403a8cf/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/.....

G7: Europe will tell US to deal with 'fiscal cliff'
Europe will tell the US, Japan and Canada next week that it is acting to resolve its sovereign debt crisis, but that US fiscal policy and slowing growth in Japan and China also pose risks to the global economy, according to reports.<img width='1' .....

John Bond is a 'marked man' for some investors as Xstrata approves 50bn merger
Shareholders in Xstrata warned that chairman Sir John Bond was a "marked man" as the miner's board recommended the 50bn mega-merger with Glencore.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2403a8d1/mf.gif' b.....

Debt crisis: Greece heads for sixth year of recession
Greece is heading for its sixth year in recession, the finance ministry in Athens warned, adding to pressure on European leaders to ease their demands for austerity or watch the indebted country crumble.<img width='1' height='1' src='http://telegr.....

Stephen Hester: RBS is 'poster child' for banking failures
Stephen Hester, chief executive of Royal Bank of Scotland, has admitted the institution is a "British poster child for what went wrong in banking".<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/24037b36/mf.gif' .....

EADS chief Tom Enders tries to salvage BAE deal
EADS chief executive Tom Enders attempted to salvage a proposed merger with BAE Systems after one of the company's key shareholders, Lagardre, demanded a rethink on the deal.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f.....

Cadbury defeats Nestl in battle for purple wrapper
Dairy Milk maker wins legal right to stop other firms using the colour.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/240377ae/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r.....

Spanish banks will need up to 105bn, warns Moody's
Fears for Spain escalated after rating agency Moody's warned that the country's stricken banks may need almost twice as much capital as the official estimate and Catalan's separatists stepped up their rhetoric against Madrid.<img width='1' height=.....

Oligarchs hire Rothschild to raise $20bn for BP stake
BP's oligarch partners in its troublesome Russian joint venture have appointed investment bank Rothschild to raise at least $20bn (12.4bn) to buy the UK oil major's stake.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56.....

Audit rules relaxed in red tape cuts
Thousands of small businesses were yesterday given the flexibility to decide whether or not their company accounts should be audited.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2403124d/mf.gif' border='0'/>.....

The rise and fall of JJB Sports
JJB's dramatic rise and fall began when former Blackburn Rovers footballer and Wigan Athletic owner Dave Whelan bought a single store in Wigan in 1971.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/24030a05/mf.g.....

Debt crisis: as it happened, October 1, 2012
Greece's draft budget predicts that the economy will contract by 3.8pc next year and unemployment will rise, as public debt is expected to soar to close to 180pc of GDP next year.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32.....

Retailers that have collapsed in 2012: in pictures
JJB Sports has called in administrators after failing to secure a rescue deal for all of its stores, meaning more than 2,000 jobs will be lost. Here, we look at some high street chains that have failed this year.<img width='1' height='1' src='http.....

The JJB stores Sports Direct has bought
Here is a list of the JJB Sports stores bought by Sports Direct International and the number of employees at each outlet.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2402cfed/mf.gif' border='0'/><br/>.....

Debt crisis: live
Greece's draft budget predicts the economy will contract by 3.8pc next year and unemployment will rise, as public debt is expected to soar to close to 180pc of GDP next year.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f.....

JJB Sports goes into administration with 3,500 job losses
Britain's battered high street suffered another major blow after administrators managed to save just 20 JJB Sports stores, with the demise of the retailer costing 3,500 jobs and leading to the closure of 160 shops.<img width='1' height='1' src='ht.....

JJB Sports goes into administration with 2,200 job losses
Britain's battered high street suffered another major blow after administrators managed to save just 20 JJB Sports stores, with the demise of the retailer costing 3,500 jobs and leading to the closure of 160 shops.<img width='1' height='1' src='ht.....

AstraZeneca chief Pascal Soriot suspends share buyback on first day
Pascal Soriot suspends programme as he prepares a new strategy.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/24025ff3/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/1445440.....

Vijay Mallya's Kingfisher Airlines is grounded
Debt-laden Kingfisher Airlines has been grounded after its staff, who have not been paid for weeks, said they would no longer work.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/24025ff4/mf.gif' border='0'/>&.....

Greece's 2013 budget forecasts sixth year of recession
Greece will bring forward painful budget cuts to end a decade of primary deficits while grappling with a sixth year of recession, according to a 2013 draft budget.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2.....

Amazon to hire 10,000 Christmas staff
Amazon is to hire more than 10,000 temporary staff at its UK packing centres to help it manage what is expected to be unprecedented demand over the Christmas period.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s.....