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Saturday 13 October 2012

UK Financial News on 2012-10-13

RBS queries branch sale collapse
The chairman of the Royal Bank of Scotland challenges Santander's explanation for pulling out of a deal to buy 316 of its branches......

Npower adds to energy bill rises
Npower joins rival British Gas in announcing it is increasing gas and electricity prices in the UK from next month......

MP wants answers on app fraud
The chair of the Treasury Select Committee is to write to the head of NatWest about a fraud which has led to suspension of its banking app Get Cash.....

Taxi maker in recall cash crisis
Manganese Bronze, maker of the London cab, suspends sales of its taxis and recalls 400, warning of "a very detrimental impact" on its cash flows......

O2 suffers mobile call problems
A fault affecting millions of customers on O2's mobile network has been fixed, the operator confirms......

JP Morgan predicts housing upturn
JP Morgan Chase boss Jamie Dimon cuts the amount set aside to cover mortgage losses and announces a 33% rise in three month profit......

IMF backs more time for Greece
IMF chief Christine Lagarde backs calls for Greece to have more time to meet the targets of its bailout, but Germany's finance minister rebuffs the idea......

UK construction contracts again
Activity in the construction sector contracts 11.6% in August, compared with the same month last year, official figures show......

Lord Turner urges new approach
The head of the Financial Services Authority suggests it may be time for more unconventional policies to revive Britain's stagnant economy......

Travis Perkins reports weak sales
Building supplier Travis Perkins, owner of Wickes, confirms sales fell over the summer due to Olympics and bad weather......

Bumi shares surge on split offer
Shares in the London-listed Indonesian coal miner Bumi rise sharply for a second day after a proposal from Indonesia's powerful Bakrie family to split from the firm......

Mortgage lending jumps in August
Mortgage lending to house buyers jumped from July to August, according to the Council of Mortgage Lenders......

US overturns Samsung phone ban
A US court overturns a ban on sales of the Samsung Galaxy Nexus phone, dealing a blow to Apple in the ongoing battle between the two rivals......

Sprint talks hit Softbank shares
Shares in Japanese mobile phone company Softbank fall 16.9% in Tokyo after confirmation that it is in takeover talks with Sprint Nextel......

Ken Clarke given trade envoy role
Veteran minister Ken Clarke takes on a new role as the UK's roving trade envoy, a month after after losing his role as justice secretary......

Singapore economy contracts 1.5%
Singapore's economy contracts in the July to September period, but narrowly avoids a technical recession......

RBS bank branch sale collapses
Royal Bank of Scotland's planned sale of 316 branches to Santander collapses, with the Spanish bank saying the deal could not be agreed on time......

VIDEO: Your Money: Keeping fuel bills down
In this week's Your Money, Declan Curry looks at rising electricity prices and takes a look at ethical finance......

VIDEO: RBS queries Santander sale collapse
Royal Bank of Scotland chief executive Stephen Hester says he is disappointed at the collapse of the sale of more than 300 branches and other business to Santander......

VIDEO: Health warning over third runway
A third runway at Heathrow would be worse for public health than a completely new airport in the Thames Estuary, according to a study funded by American university MIT......

VIDEO: Gulf seeks aluminium profits
Keen to find sources of revenue away from oil, the Gulf has significantly increased the number of aluminium smelters in recent years......

VIDEO: How do you crack the Rubik's cube?
The European Rubik's Cube Championship and hundreds of competitors are taking part......

VIDEO: EU wins Nobel Prize amid turmoil
The European Union has been awarded the Nobel Peace Prize for six decades of work in advancing peace in Europe......

VIDEO: Npower adds to energy bill rises
Npower has joined rival British Gas in announcing it is increasing gas and electricity prices in the UK from next month......

VIDEO: Britain's most remote broadband user?
Rory Cellan-Jones visits the Knoydart Peninsula, one of Britain's most remote locations, to find out how it gets a broadband connection......

Should Bank start the helicopter?
Is it time for the Bank of England to do a 'helicopter drop' of money to kick-start recovery?.....

Is boutique gin the tonic?
Is boutique gin the tonic for the shrinking spirits market?.....

Investing the ethical way
Finding the right ethical investment can be complicated.....

Obama touts benefits of auto bailout as debate looms.
Oct. 13 - Obama focuses on auto bailout in weekly address highlighting strength of industry, underscoring rival Romney's opposition to industry rescue. Deborah Lutterbeck reports......

Worst Wall St. week since June
Oct 12 - Summary of business headlines: Stocks drop big for the week, but flat for the day; U.S. consumer sentiment hits five-year high; JPMorgan Chase, Wells Fargo sink despite record profits; Apple may debut iPad mini on October 23 source. Conway G.....

Banks profit from housing rebound
Oct 12 - JPMorgan Chase and Wells Fargo posted record profits in the third quarter as mortgage lending picks up, but there are bigger concerns around the corner. Jill Bennett reports......

U.S. Week Ahead: Get ready for an earnings deluge!
Oct 12 -15% of the S&P 500 is reporting with big names from the financials, tech and consumer sectors. Highlights include Goldman Sachs, Google and General Electric......

Daily Digit: 83.1 consumer high
/University of Michigan survey......

The upstart street art of Moniker
Oct. 12 - Organizers of the Moniker Art Fair in East London acknowledge their four-day event is a blatant attempt to capitalize on the much larger Frieze Art Fair in central London, but it's all in the name of giving emerging artists like RemiRough a.....

Trading at Noon: Workday, AMD & Travelzoo moving markets
Oct 12 - Workday soars 72 pct in market debut. AMD & Travelzoo fall on weak Q3 revenue forecasts......

Breakingviews: JPMorgans whale recedes
Oct 12 - Breakingviews columnists discuss why despite the banks noteworthy third-quarter results, its too soon for JPMorgan boss Jamie Dimon to get too confident......

Sake diplomacy at IMF World Bank meeting in Japan
Oct. 12 - Finance officials and Japan's Prime Minister break open sake barrels at a reception ceremony for the IMF World Bank meeting in Japan. Rough Cut (no reporter narration)......

The exodus of Hungarian workers
Oct. 12 - Although Hungary's Prime Minister looks set to make a loan deal with the IMF that could stabilise its economy, hundreds of thousands are leaving to work overseas. Joanne Nicholson reports......

Europe Week Ahead: EU summit countdown stokes tension
Oct. 12 - Market tensions ease as Spain says Europe's bond-buying fund is ready for action, but the countdown to next week's EU summit could see tensions rise again......

Decoder: Nobel Prize - more politics than peace?
Oct. 12 - Eurasia Group analyst Antonio Barroso discusses the thinking behind, and controversy surrounding, the decision to award the Nobel Peace Prize to the European Union.....

Europe celebrates timely distraction amid gloom
Oct. 12 - European leaders, citizens and business analysts react to the European Union winning the Nobel Peace Prize at a time when there's great discord over the bloc's economic future. Ivor Bennett reports.....

3XSQ: Housing market has turned the corner - JPM CEO Dimon
Oct. 12 - JPMorgan Chase posted record quarterly profits on Friday, up 34 percent from a year earlier, as low interest rates and a recovering housing market brought big increases in mortgage lending......

Europe deserves Nobel Peace prize, but 60 years too late
Oct. 12 - The European Union was founded to prevent war in Europe and the EU winning the Nobel peace prize should remind us of this says former special adviser to the Foreign Office on Europe, Adam Fergusson......

Market Pulse: Bet on U.S. banks, techs - Barclays
Oct. 12 - U.S. bank stocks look like a buy as we head into earnings season, with tech stocks also looking cheap, says Barclays' Will Hobbs......

Reuters Asks: Can automakers steer out of crisis in 2013?
Oct. 12 - Will 2013 be any better for the world's automakers? We ask CEOs and analysts at the Paris car show......

Breakingviews: Don't laugh, the EU deserves it
Breakingviews assistant editor Robert Cole......

Asia's fastest millionaire machine? Indonesia
Oct. 12 - Forget China, it's Indonesia that's cranking out millionaires faster than anywhere else in Asia, thanks to a surging economy. Lisa Yuriko Thomas reports......

Reuters Today: Biden comes out swinging at debate
Oct. 12 - U.S. Vice President Joe Biden and rival Republican Paul Ryan battle fiercely in a lively debate. Plus Softbank looks to bid for Sprint......

Reuters Right Now: JP Morgan rocks, Jamie gets a break
Oct. 12 - JPMorgan Chase posted record quarterly profits on Friday, providing relief to a beleagured Jamie Dimon, whose reputation had been dented with the whale trade losses, federal probes, and lawsuits......

Scientists find silk solution to eardrum repair
Oct. 12 - Researchers in Perth, Western Australia say they are excited by research showing the effectiveness of silk in repairing damaged ear drums. Unlike conventional materials, silk can be used as a scaffold to grow cells, repair the damage and al.....

Wealth Strategies: Silver prices driven by QE, Euro buying
Oct. 12 - John Smith, CEO of Silver Standard Resources, says as central governments try to stimulate their economies, they'll devalue their own currencies, making silver a safe haven and providing price support.....

Reuters Right Now: JPMorgan profits rise 34% with mortgage surge
Oct. 12 - JPMorgan Chase's net income came in at a record $5.71 billion, or $1.40 a share, compared with $4.26 billion, or $1.02 a share, a year earlier......

Asia Week Ahead: Brace for weak China GDP data
Breakingviews......

The Sunday Interview: Colin Kersley, chief of M&S Bank
In his first interview, the head of M&S Bank explains why the retailer's latest venture is the way forward for banking after the credit crisis .<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2471b1e2/mf.gif'.....

Car industry in drive for lenders
Britain's car industry will bring together the country's biggest lenders with the automotive supply chain in an attempt to boost lending and investment in the sector.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/.....

Lessons of the 1987 crash are clear - don't panic, invest
At the risk of matching weatherman Michael Fish for disastrous overconfidence, I think there is little danger of history repeating itself next week on the 25th anniversary of the 1987 stock market crash.<img width='1' height='1' src='http://telegr.....

Investors join rebels over Murdoch's News Corp position
Two largest public pension funds in US vote to oust Rupert Murdoch as chairman of News Corporation, putting pressure on media chief executive ahead of investor showdown.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/5683.....

Think Tank: If you want work, be professional from the start
The receptionist answering the telephone sounded apologetic. "There's no one here apart from me at the moment, I'm afraid. We are a very small company." Somewhat defensively, she added: "It is Friday, you know."<img width='1' height='1' src='http:.....

RBS hopes dashed by one phone call
After 26 months, hundreds of millions of pounds of costs, and letters to 1.8m customers, one phone call was all it took to bring Royal Bank of Scotland's hopes of selling 316 branches to rival Santander to an end.<img width='1' height='1' src='htt.....

Lord Turner: banks in need of cash boost
Britain's banks should have been recapitalised with far more taxpayers' money in 2008 to make them strong enough to support the recovery, Lord Turner, the chairman of the Financial Services Authority, has said.<img width='1' height='1' src='http:/.....

Britain's business leaders back third Heathrow runway
Britain's most senior business leaders are overwhelmingly in favour of a controversial third runway at Heathrow Airport.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2471b1e8/mf.gif' border='0'/><br/>&.....

Rainmaker: RBS chief stuck between a rock and an EU rule
Stephen Hester had been having a good time of it of late, relatively speaking. Following a tough summer - in which the Royal Bank of Scotland's computer system decided to play up - the autumn months had begun with relative ease for the chief executiv.....

UK's 'forgotten sector' that is key to economic recovery
If you've got a hidden talent, it's no talent at all," says Rami Ranger. The founder of 109m-turnover firm Sun Mark, which takes well-known British brands to far-flung markets, is fond of the pithy phrases.<img width='1' height='1' src='http://tel.....

Hand Picked Hotels will never be a chain says chairman
What's a chain of luxury hotels when it's not a chain? It's a collection, says Julia Hands, the chairman and chief executive of Hand Picked Hotels and the wife of Guy Hands, the Guernsey-based financier behind private equity group Terra Firma.<img.....

Now then, what else can we attack Germany for?
Like penalties and towels on sunloungers, when it comes to inconvenient failings it is always a good idea to blame the Germans. Greece had a go at it last week, with protesters in Nazi uniforms out in force to greet Chancellor Angela Merkel.<img w.....

George Osborne boost as economy 'begins to grow'
Britain poised for dose of good news when leading forecaster predicts that the economy will bounce back to 0.7pc growth, and a housing market recovery will start in the spring.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726.....

Rail franchise deal raises Virgin's West Coast hopes
The Department for Transport by-passed EU rules and extended a train franchise as recently as August last year without putting the contract out to tender, industry sources say.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726.....

What David Cameron failed to say in his speech
The party conference season is over for another year. While it was uninspiring midterm fare for the most part, I offer some observations.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2471b1f1/mf.gif' border='0'.....

Prudential drops plans for moving HQ from London
Prudential looks set to keep its headquarters in London despite previous suggestions that it could move to Asia amid concerns about European capital requirements.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/24.....

Poor old Bob - now the BBC's going after him
Poor old Bob Diamond, the banking CEO some people just love to hate.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2471b1f7/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/14.....

Oil giant may need EGM over TNK-BP sale
BP could be forced to hold its first extraordinary general meeting in more than a decade to gain approval for selling out of TNK-BP.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2471b1f6/mf.gif' border='0'/>.....

Rentokil plans City Link exit
Rentokil Initial has drawn up plans to either close down or spin off City Link, its underperforming parcel delivery service.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2471b1f4/mf.gif' border='0'/><br/&.....

How the Germans shot down the BAE deal
It was the aerospace deal of the decade - the 28bn merger of UK defence giant BAE Systems and its continental cousin, EADS. Then Chancellor Angela Merkel sank the negotiations, leaving BAE chairman Dick Olver and CEO Ian King to pick up the pieces.&l.....

The UK is best placed to grab a tech dividend
I'm an immigrant. I chose to live in the UK. During both the US presidential seasons and the UK party conferences, I can't help but think almost constantly about why I choose to live here rather than there.<img width='1' height='1' src='http://tel.....

Ministers demanded permanent British control in BAE-EADS deal
The Government demanded that the new chief executive of the defence division of a merged BAE-EADS aerospace giant should be British "in perpetuity", in a move that is believed to have increased tensions with Germany.<img width='1' height='1' src='.....

Goldman Sachs under renewed pressure to cut costs
Goldman Sachs will face renewed pressure to cut costs even though the Wall Street bank is expected to deliver this week an increase in profits to $1.15bn for the third quarter.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726.....

Kate Swann saved WH Smith by focusing on service and costs. What will her successor do?
When Kate Swann joined WH Smith nine years ago, she toured stores across Britain.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2471ae6a/mf.gif' border='0'/><br/><br/><a href="http://da.feedspo.....

Sir Richard Branson set to make a move on 316 RBS branches
Virgin Money is poised to work on a bid for the 316-branch Royal Bank of Scotland division after the collapse of the 1.65bn deal to sell it to lender Santander.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2471.....