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Tuesday 30 October 2012

UK Financial News on 2012-10-30

Scramble for yield drives down buyout borrowing costs
Investor demand for yield has pushed borrowing costs for private equity portfolio companies to among their lowest this year.....

Eurozone hedge funds set for 12% contraction
‘Staggering' underperformance globally has left investors feeling disenchanted.....

Edinburgh goes big on timber
Lothian pension scheme raised its investment in timber from £800,000 to £46m in the year to March, according to newly released council minutes.....

TOM gears up for a bigger slice of Liffe
Dutch trading venue is to launch an attack on one of NYSE Liffe's most popular index option contracts.....

UKFI moves back next door to the taxman
Three years ago it was encouraged to move to its existing offices a mile away, to demonstrate its independence.....

Jefferies reaps its reward from Knight Capital rescue
Jefferies received a $20m advisory fee from the rescue of broker and high-frequency trader Knight Capital.....

HSBC hires head of oil and gas in Europe
Paul Connolly is set to join HSBC as head of oil and gas for Europe, the Middle East and Africa.....

Disney buys firm behind Star Wars
Disney buys Lucasfilm, the company behind Star Wars, from George Lucas for $4.05bn (2.5bn) and will release a seventh Star Wars film in 2015......

Sandy damage estimated at $20bn
Businesses on the US East Coast continue to be disrupted by storm Sandy, with total damage estimated at between $10bn and $20bn (6bn-12bn)......

Hitachi buys UK nuclear project
Japan's Hitachi has bought the UK's Horizon nuclear project from German companies E.On and RWE, giving it rights to build new power plants......

Talks to save London taxi firm
Administrators at the maker of London black cabs, Manganese Bronze, say they are talking to an "encouraging" list of parties interested in its rescue......

'No detail yet' for energy plan
The prime minister announced the "intent, not the detail" of a plan to put energy customers on the cheapest tariff, the energy minister tells MPs......

Negative equity problem 'easing'
The problem of negative equity has eased in the past year, according to research from the Council of Mortgage Lenders......

Swiss bank UBS cuts 10,000 jobs
Swiss bank UBS confirms plans to cut 10,000 job worldwide, including 100 London traders who are made redundant immediately......

Greece reaches austerity accord
Greece reaches agreement with its international creditors on new austerity measures, but the deal needs parliamentary approval......

Europe losses curb Ford profits
Ford and Fiat report higher third quarter profits driven by strong North America sales, while problems in the eurozone continue to hit sales there......

Branston sold by Premier Foods
Premier Foods agrees to sell its Branston range of pickles and sauces to Japanese vinegar company Mizkan, which recently also bought Sarson's......

'I lost control', says UBS trader
An alleged rogue trader accused of gambling away 1.4bn tells a jury how he "lost control in the maelstrom of the financial crisis"......

Apple ousts two key executives
Apple ousts a longtime software architect, as well as the former head of Dixons, in the wake of problems with the firm's mapping software......

Royal Mail to create 1,000 jobs
Royal Mail is to create 1,000 jobs in the UK over the next four years as part of a 75m investment programme for its parcels business......

BP profits fall but dividend up
Oil giant BP reports a fall in profits for the last three months, but increases its shareholder dividend by 12.5%, sending the shares up 5%......

Police fire tear gas at SA mine
Police fire rubber bullets and tear gas to disperse about 1,000 striking miners at a leading platinum mine in South Africa......

Japan gets $138bn stimulus boost
The Bank of Japan takes further stimulus measures amid concerns that Japan's economic recovery may be running out of steam......

Deutsche Bank profit helps shares
Deutsche Bank shares rise more than 3% after its profits - though flat from the same quarter in 2011 - beat analyst expectations......

Bad weather 'hits honey yield'
A cold and wet summer causes a "dramatic fall" in the amount of honey produced by British bees, the British Beekeepers' Association says......

Occupy movement played 'key role'
A top Bank of England official says the Occupy movement has played a key role in financial reformation......

Welfare shake-up 'risks hardship'
Benefit claimants could find themselves "trapped in poverty" as a result of the government's introduction of a new single welfare payment, it is claimed......

Five million 'below living wage'
One in five workers in the UK is paid less than required for a basic standard of living, a KPMG report says......

Child benefit letters to go out
One million households will receive letters from the UK tax authority this week about losing child benefit, with tax experts expecting a flood of calls for advice......

India cuts bank reserve not rates
India's central bank leaves rates unchanged but cuts the amount of money lenders need to keep in reserve in an attempt to boost growth......

Bank loans 'to hit six-year low'
Bank lending to businesses will hit its lowest level this year since 2006, despite government efforts to stimulate lending, a report suggests......

Firms 'upbeat' on overseas growth
UK medium-sized businesses are upbeat about the prospects for international expansion, a survey by accountants BDO suggests......

Baidu posts 60% rise in income
Baidu, China's biggest search engine, sees a 60% rise in quarterly net income as it continues to attract increasing amounts of advertising......

UK's first 4G service launches
Eleven cities around the UK will be able to receive 4G mobile coverage from Tuesday morning, but critics have doubts over its cost......

Singapore Air buys Virgin stake
Singapore Airlines buys a 10% stake in Virgin Australia, as competition heats up in the Australian aviation market......

Murrayfield name change explored
Scottish Rugby considers renaming Murrayfield and says it could generate millions of pounds a year......

Inverness chief upbeat on debts
Inverness chairman Kenny Cameron says the club's financial figures could have been worse despite almost doubling losses......

Germany to host 2015 Solheim Cup
The Solheim Cup, the women's version of the Ryder Cup, will he held in Germany for the first time in 2015......

VIDEO: Speed testing 4G in Manchester
Rory Cellan-Jones speed tests Everything Everywhere's new 4G service as it goes live in Manchester......

VIDEO: How has Ikea changed furniture design?
As Ikea celebrates 25 years since its first store opened in the UK, the Design Museum's Michael Czerwinski evaluates the furniture giant's impact on design......

VIDEO: Royal Mail expanding parcels service
Royal Mail is to create 1,000 jobs in the UK over the next four years as part of a 75m investment programme for its parcels business......

VIDEO: UBS cuts 10,000 staff worldwide
Swiss bank UBS has announced it is cutting 10,000 jobs worldwide as it slims down its investment banking activities......

VIDEO: Leaders welcome nuclear plant deal
Welsh political leaders have welcomed confirmation that Hitachi is to buy nuclear project Horizon on Anglesey, which could create up to 6,000 jobs......

VIDEO: Branston sold by Premier Foods
Premier Foods has agreed to sell its Branston range of pickles and sauces to Japanese company Mizkan for 92.5m......

VIDEO: Tricky times for Foxconn
Taiwan's Hon Hai, which trades under the name Foxconn, is set to report its third quarter earnings, amid unrest amongst its workers and rising production costs......

VIDEO: World's highest power pylon stands tall
The worlds tallest power pylon has recently been completed in Chinas Anhui Province, standing at an impressive 277.5m high......

The hidden costs of a hurricane
The hidden costs of an 80mph hurricane.....

Can China's internet firms balance nationalism with global dreams?
Can China's internet firms balance nationalism with global dreams?.....

India's digital switchover begins
Taking India's 150 million televisions digital.....

Villagers 'buy in' to wind farm
The village encouraged to invest in its local wind farm.....

How do you stop online students cheating?
How do you stop an online student from cheating?.....

Whole-of-life insurance complaints rise
The growing problem with whole-of-life policies.....

U.S. Day Ahead: U.S. stock markets expect to reopen
Oct 30 - Major U.S. stock exchanges expect to open on Wednesday after a monster storm shut down their trading for two days......

EE brings 4G to UK
Technology Correspondent Matt Cowan reports......

Apple enters the true era of the Ive
Oct. 30 - Jonathan Ive takes charge of designing both hardware and software for Apple after the man behind the firm's Maps product is given the boot......

Trading at Noon: Sandy's impact; Cook changes chefs
Oct 30 - We look at the impact of Sandy on the NYSE, and Apple's Tim Cook changes his sous-chef to Jonathan Ive......

The axe falls at UBS - who's next?
Oct. 30 - UBS unveils plans to wind down its fixed income business and fire 10,000 bankers in one of the biggest bonfires of finance jobs since the implosion of Lehman Brothers in 2008. Hayley Platt reports......

Daily Digit: 37m Barclays Libor test case
Oct. 30 - The figure Barclays is being sued for over the alleged mis-selling of interest rate hedging products. It's the first bank to face trial in a British court over the damages stemming from manipulation of the Libor interets rate. Sonia Legg re.....

South African police clash with striking miners
Oct. 30 - Police used rubber bullets and teargas to disperse striking workers at Amplats' Rustenburg mine on Tuesday after a power sub-station was set alight. Sarah Sheffer reports......

In the Boardroom: Change of the guard cuts uncertainty
columnist Lucy Marcus discusses the motives behind quick corporate reshuffles......

Telefonica's launches biggest 2012 IPO
Oct.30 - Shares in Telefonica's O2-branded German unit rise over 3 percent following Europe's biggest initial public offering in more than a year. Ciara Sutton reports......

Factbox: Is Sandy a Democrat or a Republican?
Oct. 30 - Superstorm Sandy is playing havoc with campaigning in the last full week of the race for the White House......

U.S. Morning Call: NYC floods; NYSE tests contingency plan
Oct 30 - New York City streets saw record levels of floodwater, blacking out power to millions of people and bringing transportation to a halt......

Breakingviews: UBS euphoria overdone
Breakingviews......

Reuters Today: Risk assets hold on despite Sandy threat
Oct. 30 - European stocks rise after updates from Swiss bank UBS and UK energy firm BP. Though trading remains thin as superstorm Sandy keeps Wall Street closed for a second day......

Daily digit: 400 mln iOS devices - Forstall's Apple legacy
Oct. 30 - 400 million is the number of devices running Apple's iOS worldwide - but the software's architect, Scott Forstall, is leaving the firm as part of its biggest reshuffle in a decade......

What's behind the shine of China's bank earnings?
Oct. 30 - Although China's big banks are well capitalized, their results have been subject to some window-dressing ahead of a crucial political transition, says Jim Antos, Asia banking analyst at Mizuho......

Amputees get virtual help to 'feel' prosthetic limb
Oct. 30 - Scientists at the Vienna University of Technology have created a virtual reality system designed to help train recent amputees to use their prosthetic limbs. The 3D optical motion capture system was devised in collaboration with prosthetic .....

Market Pulse: What's moving today and why
Insider has its finger on the market pulse, analyzing and making sense of the biggest movers of the day......

Sandy shuts down Wall Street
Oct. 29 - Hurricane Sandy hits the U.S. East Coast halting public transport and closing businesses. All U.S. stock exchanges were closed on Monday - it's the first time in 27 years bad weather has forced a market shutdown. Conway G. Gittens reports......

Turbulent politics puts Italy in spotlight
Oct. 29 - Italy's Prime Minister Mario Monti meets Spain's Prime Minister Mariano Rajoy in a bilateral summit where some expect Rome to keep pushing Madrid to seek a bailout in order to lower borrowing costs for other peripheral euro zone countries. .....

U.S. Day Ahead: Sandy closes U.S. equity, bond markets
Oct 29 - Stock market executives, regulators and brokers have agreed to close the U.S. stock markets on Tuesday because of Hurricane Sandy......

Penguin Books and Random House to merge
Oct. 29 - Pearson said it would merge Penguin Books with Bertelsmann's Random House to create the world's leading consumer publisher, a day after Rupert Murdoch's Sunday Times said his News Corp group could bid for Penguin. Matt Cowan reports......

Greek editor in court over Swiss bank list
Oct. 29 - A major Greek newspaper has reprinted the names of 2,000 wealthy Greeks with Swiss bank accounts as the editor who first published the list is told he will stand trial for violating data privacy laws. Sonia Legg reports......

Trading at Noon: Hurricane Sandy's impact on sectors, stocks
Oct 29 - The latest on Hurricane Sandy and on sectors that stand to benefit or lose from the impact of the storm......

Europe Day Ahead: Job cuts and earnings galore
Oct. 29 - Investors brace themselves for expected job cuts from UBS and a slew of corporate earnings from Europe and the U.S......

Daily Digit: 10 billion bill for banks who mis-sold
Oct. 29 - The compensation bill lenders have had to pay for mis-sold payment protection insurance is reportedly set to surpass 10 billion pounds this week, putting it on course to become the most aggressively mis-sold product in UK banking history. H.....

Hitachi unveils 20bn plan to build nuclear reactors in the UK
Japan's Hitachi has revived Britain's ailing nuclear power ambitions with plans to invest 20bn in building at least four reactors in the UK.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/250dab5f/mf.gif' border=.....

Walt Disney buys Lucasfilm for $4bn and will release new Star Wars films
George Lucas has sold the film production company behind Star Wars to The Walt Disney Company in a deal worth $4bn.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/250dab65/mf.gif' border='0'/><br/><br.....

BP rewards 'patient' shareholders by raising dividend as profits beat expectations
BP rewarded its "patient" shareholders by raising its dividend as its third-quarter results resoundingly beat market expectations, sending the group's shares up sharply.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/5683.....

Aggreko rises as investors gauge storm impact
The temporary power provider could benefit from the US devastation.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/250d9813/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/148.....

Retailers face new 'poll tax' over business rates revaluation
Under-pressure shops in Britain face the "retail equivalent of the poll tax" if the Government presses ahead with plans to halt a revaluation of business rates, according to MPs.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/327.....

Superstorm Sandy: Wall Street to reopen on Wednesday
Wall Street will reopen on Wednesday as the world's financial capital takes a first step in a recovery that Mayor Mike Bloomberg warned will take many days.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/250d981a.....

Financial Times imposes recruitment freeze amid ad slump fears
The Financial Times has imposed a recruitment freeze and ordered staff to cut travel costs, amid concerns over its advertising revenues.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/250d9828/mf.gif' border='0'/.....

Spain sinks deeper into recession in third quarter
Spain has slipped deeper into recession as the financial crisis and austerity weighs on the embattled country's economy.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/250d20d3/mf.gif' border='0'/><br/>&.....

Hungary plans to offer passports to investors buying its debt
Latest plan from Hungary's politicians to shore up balance sheet.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/250d20d4/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/14865.....

Suitors line up for troubled black cab maker Manganese Bronze
Buyers are queuing up to salvage a future for embattled black cab maker Manganese Bronze, its administrator PricewaterhouseCoopers has claimed.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/250d20d6/mf.gif' bord.....

Standard Chartered on course for record profits despite US fine
Standard Chartered said its operating profits for the first nine months of the year had grown by a "mid single-digit rate" before taking into account the impact of a $340m (212m) fine to settle allegations it broke US sanctions.<img width='1' heig.....

West Coast figures cast fresh doubt over Department for Transport decisions
Subdued half-year revenue figures for the beleaguered West Coast Main Line have raised further questions over why the Department for Transport accepted a bid that promised annual growth of 10.4pc.<img width='1' height='1' src='http://telegraph.fee.....

HBOS whistleblower was 'abused' by top executive
Managers at HBOS were routinely threatened and abused by colleagues and senior executives at the lender in the years leading up to its collapse, according to a former head of risk at the bank.<img width='1' height='1' src='http://telegraph.feedspo.....

UBS bankers in London head for the pub after being turned away at office door
UBS bankers in London were turned away from their offices on Tuesday and handed a letter putting them on "special leave", just hours after the Swiss bank unveiled a radical restructuring to axe 10,000 jobs.<img width='1' height='1' src='http://tel.....

Debt crisis: as it happened - October 30, 2012
Spain's economy shrank for a fifth straight quarter in July to September, undermining efforts to plug the budget deficit that is pushing the nation closer to a bailout.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56830.....

Banks are wrong on PPI 'fraud', says top ombudsman Natalie Ceeney
Britain's top financial ombudsman has questioned allegations by high street lenders that many of the claims against them for payment protection insurance compensation are fraudulent.<img width='1' height='1' src='http://telegraph.feedsportal.com/c.....

Banks are wrong on PPI 'fraud', says top ombudsman
Britain's top financial ombudsman has questioned allegations by high street lenders that many of the claims against them for payment protection insurance compensation are fraudulent.<img width='1' height='1' src='http://telegraph.feedsportal.com/c.....

Francois Hollande pushes for 160pc rise in beer taxes
French president wants to fund struggling social programmes.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/250cfdb0/mf.gif' border='0'/>.....

Our tax system is a chain around the economy's ankles
France's tyrannical Sun King knew how to pick his finance ministers.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/250cd5ad/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/14.....

Debt crisis: Spanish recession deepens - live
Spain's economy shrank for a fifth straight quarter in July to September, undermining efforts to plug the budget deficit that is pushing the nation closer to a bailout.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56830.....

Your credit card details at risk as companies store them unwittingly
Shoppers' credit card details are at risk of being stolen because companies are storing them without realising, according to research.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/250bdc7d/mf.gif' border='0'/&g.....

Superstorm Sandy: Clean-up could offset hit to US growth
The clean-up operation from Superstorm Sandy could offset the expected significant short-term damage to the US economy.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/250ba54e/mf.gif' border='0'/>.....

IntraLinks
IntraLinks has become the dominant platform for secure document and information exchanges.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/250ba552/mf.gif' border='0'/>.....

How not to get a job
Recruiters say one of their biggest turn-offs is candidates applying for jobs that are way above their experience level - with many blacklisting candidates who do so.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/.....

Black cab maker Manganese Bronze appoints PwC as administrator
Manganese Bronze, the maker of London's iconic black cabs, has appointed PricewaterhouseCoopers as administrators after talks to secure funding were unsuccessful.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/25.....