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Thursday 11 October 2012

UK Financial News on 2012-10-11

Cuts could hit growth 'for years'
Reducing private, business and government debt could impact economic growth for many years, the head of the Financial Services Authority has says......

British Gas to raise its prices
British Gas is to announce 8% increases to its gas and electricity charges on Friday, adding about 100 to an average bill, the BBC understands......

UK visitors drop despite Olympics
The number of visitors to the UK fell in August, despite the Olympics, although the amount of money they spent rose, official figures show......

WH Smith chief Swann to step down
Shares in WH Smith fall after it announces that its chief executive Kate Swann is to step down after nine years in charge......

Greece unemployment hits record
Unemployment in Greece hit a record 25% in July, government figures show, with youth unemployment reaching more than 54%......

Burberry confirms weak Asia sales
Burberry confirms sharply slower demand growth in China, although stronger sale results elsewhere lift the fashion house's shares......

Kindle sales make Amazon no profit
Amazon's boss confirms it only breaks even on its hardware as he launches the Kindle Paperwhite and a book lending service in Europe......

BAE warns on US spending outlook
Defence group BAE Systems warns of uncertainties in the US market, a day after ending EADS merger talks......

Direct Line shares rise on debut
Shares in insurer Direct Line rise on their first day of limited trading after Royal Bank of Scotland floats the company on the stock exchange......

Facebook criticised over UK tax
The company paid 238,000 in tax last year in the UK according to its latest accounts despite estimates of making 175m in sales......

Germany 'faces risk of recession'
Four German economic think tanks slash forecasts for their country's growth and warn it could slip into recession if the eurozone crisis does not stabilise......

Lenders cut mortgage rates again
A fresh round of cuts in mortgage rates has been announced by ten lenders, which some say is due to the Bank of England's Funding for Lending Scheme......

Greggs warns sales to remain weak
Greggs, the UK's largest bakery chain, warns that sales will remain weak this year as customers continue to economise......

Auto-enrolment warning on charges
The recently launched landmark policy of pension auto-enrolment may be a bad idea for some workers, pensions experts have warned......

Ulster Bank compensation at 18m
Ulster Bank's chief executive says more than 18m has been paid out in compensation to 300,000 customers in NI affected by a computer glitch......

Rangers to float on AIM market
Rangers football club formally announces that it intends to float its shares on the AIM market in London......

Child benefit cut letters 'soon'
Millions of parents will be getting letters from the taxman in the next month setting out details of how their child benefit could be cut......

NatWest admits app fraud problem
NatWest bank has admitted that fraud is behind its decision to suspend a mobile phone application which lets customers withdraw cash without a debit card......

Barclays changes branch bonuses
Barclays bank is changing the way it awards bonuses to 18,000 staff in High Street branches and call centres......

IMF issues fresh crisis warning
Christine Lagarde, head of the International Monetary Fund, says the global economic crisis has started to hurt growth in emerging economies......

S&P cuts Spain's credit rating
S&P downgrades Spain's credit rating to one level above junk, highlighting a deepening recession and mounting pressure on Madrid's finances......

Housing market 'lifts US economy'
The US economy has expanded "modestly" in the past six weeks thanks to a stronger housing market, a survey by the US Federal Reserve suggests......

US hikes China solar cell tariffs
The US is to impose sharply higher tariffs on solar cells imported from China, which it says will offset the subsidies China pays its manufacturers......

Lenovo 'ousts HP as top PC maker'
Chinese PC maker Lenovo replaces Hewlett-Packard as the world's top PC maker, according to figures released by research firm Gartner......

Toyota to recall 7.4 million cars
Toyota is recalling more than seven million vehicles worldwide, including some Yaris, Corolla and Camry models, over faulty window switches......

VIDEO: Ryanair boss: Fuel risk claims are lies
Ryanair's CEO Michael O'Leary has dismissed claims that his airline is risking more emergency landings because pilots are not being allowed to carry sufficient spare fuel......

VIDEO: ASA bans misleading Virgin Media ads
Over the last year and a half the Advertising Standards Authority (ASA) has banned 25 Virgin Media adverts for being either misleading or factually incorrect. BBC Watchdog has looked into a few of them to find out why so many are falling foul of the .....

AUDIO: McLaren 49m 'cheat' fine is tax deductible
The British Formula One motor racing team McLaren has successfully argued that a 49m fine it had to pay for cheating is tax deductible......

VIDEO: Book shops get Super Thursday boost
Book shops have high expectations for Super Thursday when more than 200 new hardbacks reach the shelves - in the face of competition from electronic reading devices......

VIDEO: IMF calls for co-operation in Asia
The IMF calls for co-operation among countries in the Asia-Pacific region to benefit the global economy......

VIDEO: 'Fewer tourists spent more in August'
The number of visitors to the UK fell in August, despite the Olympics, but the amount they spent rose......

VIDEO: New airspace plan could 'triple capacity'
A proposal to simplify airspace over Europe is being considered in a move which the EU believes could cut costs and reduce delays for passengers......

AUDIO: Overspending 'not behind bust football clubs'
The theory that football clubs go bust because they overspend and are badly run has been called into question......

Testing times for India's MBAs
India's MBA graduates face up to new reality.....

Singapore: Economic slowdown opens foreign labour debate
Weak growth sparks foreign labour debate.....

Where now for BAE Systems?
After the EADS failure, BAE Systems needs a new strategy......

Should the UK worry about Huawei?
Should the UK be worried about using Chinese tech firms?.....

U.S. Day Ahead: JPMorgan and Wells Fargo up next
Oct 11 - Forget the doom and gloom, financial earnings kick off with JPMorgan and Wells Fargo - Wall Street's banking on profits!.....

FACTBOX: Who is Softbank?
Oct 11 - The facts and figures behind the Japanese company that's making a $12.8 bln bid for Sprint Nextel......

Reuters Right Now: From Navistar to Oshkosh-Icahn's on it!
Correspondent Scott Malone takes a look at what's driving the moves......

Back to the drawing board for BAE
Oct. 11 - BAE Systems warns it faces uncertainty in its core market, the United States, after the collapse of talks with EADS, how much damage has the failed mega merger done to both companies and their bosses? Sonia Legg reports.....

Nigerian farmers sue oil giant Shell
Oct. 11 - Royal Dutch Shell is in court in the Hague after farmers from the Niger Delta brought a civil case for the damage caused by oil leaks between 2004 and 2005. It's the first time a multinational has been taken to court in its own country. Joa.....

Trading at Noon: Sprint up, confirms talks with Softbank
Oct 11 - Sprint confirms that it is currently in talks with Softbank about selling a stake that could be valued at $12.8 billion......

Breakingviews: Japanese adventurism
Oct 11 - Richard Beales and Rob Cox discuss whether theres more to Softbanks interest in Sprint Nextel than Japan Incs recent penchant for big acquisitions overseas......

Reuters Right Now: Sprint confirms talks with Softbank
Oct 11 - Sprint has confirmed the talks with Japanese mobile carrier Softbank to buy a majority stake in U.S. operator for $12.8 billion, a deal that would give Softbank cheaper access to smartphones......

Europe Day Ahead: IMF, Germany at odds on debt
Oct. 11 - Germany's finance minister shoots down an IMF suggestion that euro zone strugglers should get more time to meet budget targets as debt worries dominate the IMF and World Bank meeting in Tokyo......

Mexican company turns plastic waste into low-cost housing
Oct. 11 - A pioneering company in the western Mexican state of Jalisco is building houses made of recycled waste plastic collected by trucks on their weekly rounds. The company, called Kuadro Ecological Solutions, says it is making the most of waste .....

Double trouble after Spain rating cut
Ovt. 11 - Spain's latest downgrade was partly due - says S & P - to a lack of clear direction in euro zone policies. With the IMF also calling for Spain and Greece to be given more time, is the pressure to solve the debt crisis back on Europe's polic.....

3XSQ: Japan's Softbank eyes Sprint for majority stake
Oct 11 - Softbank is in talks to buy two-thirds of Sprint Nextel for $12.8 billion, but says reports about the talks were "based on speculation.".....

Wealth Strategies: Mortgage biz, cost cuts to boost banks
Oct 11 - A jump in mortgage refinancing and cost cutting will help banks boost earnings relative to last year, but poor market conditions and a weak economy will mean a drop in M&A revenues in Q3......

Sports Spread: World Cup Qualifiers
Oct. 11 - The Road to Rio continues with a World Cup qualifying double-header. We look at England's chances plus other key European ties......

U.S. Morning Call: Softbank in talks to buy Sprint majority
Oct 11 - Japanese mobile carrier Softbank is in talks to buy more than two-thirds of U.S.-based telecoms company Sprint Nextel for at least $12.8 billion......

Geithner backs IMF support for Spain
Oct. 11 - U.S. Treasury Secretary Timothy Geithner says he would back IMF support for Spain "if the terms make sense"......

Market Pulse: Oil price rise unsustainable
' Chris Johnson says his sources don't think the rally will last due to the prospect of weakening global demand......

Breakingviews: Bumi Bakrie buyback
Oct. 11 - Details of troubled Bumi's buyback offer from the Bakrie family are murky at present, investors should hold on tightly, and not act too quickly say Breakingviews......

Lenovo king of a crumbling castle
Oct. 11 - Lenovo may have at last surpassed HP as the world's top PC vendor. But being #1 won't mean much if the industry keeps losing its customers to smartphone and tablet makers, as Jon Gordon reports......

Reuters on the Road: To Russia on a handshake
Oct. 11 - Russia Local founder Ignaty Dyakov takes the taxi challenge to explain the art of doing business in Russia and how his company can help......

Trichet Exclusive: Would rather ECB spoke with one voice
on managing internal ECB differences - notably between German inflation hawks and others - the bank's mandate, and continuity under his successor Mario Draghi......

Reuters Today: S&P cuts Spain to just above junk
Oct. 11 - S&P cuts Spain's credit rating to near junk. Plus the IMF prods the world's rich economies for swifter action to boost global growth......

Breakingviews: Islands row costs China more than words
Breakingviews......

Rough Cuts: IMF's Lagarde calls for action
Oct. 11 - IMF managing director Christine Lagarde urged "courageous and cooperative" action from its members to quell economic uncertainty ahead of their twice-yearly meetings in Tokyo......

Japan's Softbank in talks for $12.8 billion Sprint stake
Oct 11 - Softbank Corp, Japan's third-largest mobile carrier, is in talks to buy a majority stake in U.S. telecoms company Sprint Nextel Corp in a deal worth more than $12.8 billion......

BAE investors should not expect any quick answers from the US
Shareholders and board directors at BAE should set their alarms for 2am on Wednesday morning. Where the future of their defence company is concerned, the second US presidential debate in Kentucky could ultimately be rather telling.<img width='1' h.....

EADS chief was 'politically naive' over defence merger
EADS boss Tom Enders has been accused of being "naive" for misunderstanding the nature of Berlin's political structure and failing to approach Angela Merkel directly over the group's proposed 30bn merger with BAE Systems.<img width='1' height='1' .....

BAE poised for battle to keep lead role in global defence market
BAE returned to "business as usual" today, following a month of excitement which culminated a day earlier in the collapse of 30bn merger talks with EADS.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/24620f03/mf.....

'Rights for shares' swap will aid economy and jobs, say entrepreneurs
Goerge Osborne's 'rights for shares' plan will bring new businesses to Britain, some of the country's most successful entrepreneurs argue today.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/24620f06/mf.gif' bor.....

China's Lenovo ousts Hewlett-Packard as world's biggest PC maker
China's Lenovo Group has ousted Hewlett-Packard as the world's largest PC maker, underlining the growing muscle of Asian technology companies.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/24620f08/mf.gif' borde.....

Global banks bet on green shoots, defy IMF gloom
The US economy appears to have turned the corner at last after flirting with danger earlier this summer, according to a rash of new data.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/24626549/mf.gif' border='0'.....

Bank of England frontrunner says QE not enough to get growth going
Britain's 375bn money printing programme has run out of steam and new ways must be found to stimulate the economy, according to Lord Turner, one of the leading candidates for the Bank of England governorship.<img width='1' height='1' src='http://t.....

Bumi's Indonesian backers plan 750m split from Rothschild
Indonesia's powerful Bakrie family have laid out a 750m plan to cut links with Bumi, the troubled FTSE 250 coal group they co-founded with financier Nat Rothschild.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/.....

QinetiQ boosts apprenticeship drive
Defence and security company QinetiQ is to quadruple the number of trainees it takes on over the next year.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2461d6cb/mf.gif' border='0'/><br/><br/><.....

Good News Britain: Apprentices are the stars of the future
Dave Bradley, Group HR Director of FTSE250 technology solutions and services provider, QinetiQ, explains why increasing the apprentice intake this year will help maintain Britain's tradition of excellence in developing high-end technologies.<img w.....

Profile: Kate Swann, the WH Smith chief who made critics eat their words
Kate Swann, the straight-talking WH Smith Chief Executive, shunned the limelight to focus on the hard graft of turning the business around - and has made her critics eat their words.<img width='1' height='1' src='http://telegraph.feedsportal.com/c.....

Swann's graceful exit bolsters the argument for boardroom equality
At only 47, Kate Swann clearly has another major job in her once she leaves WH Smith next summer.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2461bb62/mf.gif' border='0'/><br/><br/><a href="h.....

Why would Scotland turn itself into Greece?
A fatal financial contradiction infects the Scottish National Party's independence plan, says Jeremy Warner<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2461b73e/mf.gif' border='0'/><br/><br/><.....

Kate Swann ready for new chief executive role after WH Smith
WH Smith chief executive Kate Swann is to look for another chief executive role after calling time on her ten-year career with the high street chain.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2461b73f/mf.gif.....

EADS board backs CEO Tom Enders despite growing criticism
EADS chief executive, Tom Enders, has been given a vote of confidence by his board despite mounting criticism over his failure to secure a 30bn merger with BAE.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2461.....

Burberry blames Olympics for profits warning
Burberry has blamed its shock profits warning in September on the London Olympics and an economic slowdown in China.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2461469d/mf.gif' border='0'/><br/><b.....

BAE Systems and EADS: Finmeccanica could look for rival deal
The Italian defence company Finmeccanica could look to take advantage of the collapse of merger talks between BAE Systems and EADS by seeking its own industry-shaping deal.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/5.....

Investor appetite for Tate & Lyle grows
The FSTE 100 group was boosted by a positive write-up from City analysts.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/246146a4/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com.....

Shell sued for negligence by Nigerian farmers
Four Nigerian villagers are suing Royal Dutch Shell for failing to clean-up oils spills that have destroyed their farms and damaged their health in landmark case that has started in The Hague.<img width='1' height='1' src='http://telegraph.feedspo.....

Banks becoming 'irrelevant' to big companies
Banks are becoming irrelevant to big businesses that can source funding direct from investors without the need to deal directly with a lender.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2461101a/mf.gif' borde.....

Debt crisis: as it happened - October 11, 2012
German thinktanks warn euro crisis putting a strain on German economy and halve forecast for German growth next year to 1pc, warning there is a "great danger" of recession in Germany if euro situation deteriorates.<img width='1' height='1' src='ht.....

Greece's Coca Cola Hellenic called Athens Stock Exchange into question
The effectiveness of Greece's capital markets was called into question on Thursday, as the country's biggest business announced it was moving its listing to the London Stock Exchange.<img width='1' height='1' src='http://telegraph.feedsportal.com/.....

UK visa system attacked as tourists stay away during Olympics
The Government has come under fresh attack over the UK's visa system which is discouraging wealthy tourists from Bric nations, in particular China.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/24609ae6/mf.gif' .....

Debt crisis: 'Great danger' of recession hitting Germany - live
German thinktanks warn euro crisis putting a strain on German economy and halve forecast for German growth next year to 1pc, warning there is a "great danger" of recession in Germany if euro situation deteriorates.<img width='1' height='1' src='ht.....

Why are women CEOs leaving?
The small number of women CEOs just got smaller. Sophie Cornish asks why the likes of Kate Swann and Dame Majorie Scardino are leaving their high-profile jobs.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/24601.....