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Tuesday, 20 November 2012

UK Financial News on 2012-11-20

Surge in high-yield demand raises fears of bubble
Weaker covenants and altered investor base could make the corporate bond market less stable.....

London could lose global hub status in five years
Commercial opportunity is the major driver of location decisions but regulation is a key consideration.....

Fan and Rankin reshape Deutsche Banks fixed-income business
New business will comprise global finance and foreign exchange, and rates and credit.....

Names emerge in JP Morgan research hiring spree
US investment bank has hired two heads of sector equity research in recent weeks, adding to the appointment of a new head of food retail research.....

Thomson Reuters offers traders storm defences
New tool can be used to help forecast swings in commodity prices in both the physical and financial markets.....

Deutsche Brse eyes closer Equiduct ties
A fresh wave of consolidation is likely in the coming months as falling trading volumes put pressure on many European equities platform operators.....

Managers smart indices catch on with pension funds
'Smart beta' concept was pioneered in the early 2000s by US-based manager Research Affiliates and ranks company shares by metrics, such as sales and turnover, rather than by market cap.....

Graphite plots co-investment fund
Dual approach allows the UK firm greater flexibility and typically offer investors better terms than a normal fund.....

Doughty slashes real estate fund target
Firm has so far only gathered about €40m in soft commitments to participate in fund.....

Autonomy 'misled HP on finances'
Computer maker Hewlett Packard asks US and UK authorities to investigate alleged misrepresentations of Autonomy's finances before HP took over the UK software group last year......

Energy tariffs to be simplified
Energy companies will be able to offer only four tariffs each for gas and electricity under government plans to get customers a better deal on energy......

Payday loan firms warned by OFT
The payday loan industry has been warned to improve the way it lends money and collects debts, or face fines or closures......

Record insider trading case filed
An ex-fund manager is charged with what could be the biggest insider trading case in US history after allegedly using early information about drug trials......

Seven years for 1.4bn UBS trader
City trader Kweku Adoboli, who lost 1.4bn of Swiss bank UBS's money, is jailed for seven years after being found guilty of two counts of fraud......

Xstrata-Glencore merger approved
Both Xstrata and Glencore shareholders vote overwhelmingly in favour of merging the mining and commodities giants......

EU faces crunch Greece decision
Eurozone finance ministers are meeting to decide whether to release the next 33bn euros of bailout cash needed by Greece to stay afloat......

Premier Foods to cut 900 UK jobs
Premier Foods, the maker of Hovis, is cutting 900 jobs at its bread division and is closing two bakeries in west London and Birmingham next year......

French downplay credit rating cut
The French government downplays the importance of rating agency Moody's decision to deprive the country of its top triple-A credit rating......

Fermanagh will host G8 summit
Prime Minister David Cameron confirms that next year's G8 summit will be held in County Fermanagh......

Easyjet reports record profits
Easyjet has reported a record annual profit after cutting costs and increasing profits per passenger leaving its shares sharply higher......

Comet to cut hundreds more jobs
The insolvent electrical chain Comet confirms a further 735 redundancies at its head office, central functions and its home delivery network......

Obama urges reduced Asia tensions
US President Barack Obama urges Asian nations to ease tensions over maritime disputes, amid terse exchanges at the end of a summit in Cambodia......

Olam shares slump on Muddy claims
Olam International, an agricultural commodities trader, sees its Singapore-listed shares fall following allegations by US short seller Muddy Waters......

Twinkies firm in last-ditch talks
The maker of Twinkies agrees to go to mediation on Tuesday to avoid liquidating the company as part of a labour dispute......

US home sales continue to rise
Sales of previously-owned homes in the US rose by more than expected in October, a report suggests, a sign that confidence is returning to the economy......

One in 10 shops empty, says BRC
More than one in 10 UK shops is empty, according to the BRC, the highest since it began collecting data on occupancy levels of High Street premises......

Rag trade under tax microscope
The rag trade and landlords are among the latest targets of a tax crackdown by HM Revenue and Customs (HMRC)......

Tax powers call 'taken seriously'
The UK government says it will give serious consideration to a report calling for Wales to have its own tax system......

Spanish banks' bad debts hit high
Problem loans at Spain's banks hit a new all-time high, as the collapse of the country's property bubble continues to hurt the economy......

Watchdog targets 'shadow banking'
International regulators are pushing for tighter rules on companies that operate like banks, but fall outside current oversight......

Business more upbeat, says Cable
The UK economy is showing "reassuring" signs and there is a "more upbeat mood" in the business community, Business Secretary Vince Cable says......

'Good prospects' for Vion sale
Finance Secretary John Swinney says there are "good prospects" for the sale of Vion's UK plants, but urges the company to find a buyer "quickly"......

SAS cuts deal to avoid bankruptcy
SAS reaches an agreement with trade unions needed to ensure the troubled Scandinavian airline's survival following all-night talks......

Intel chief executive to retire
Chipmaker Intel announces that its chief executive Paul Otellini is going to retire from the company that he joined in 1974......

SPL clubs to 'explore expansion'
Scottish Premier League clubs say they have unanimously agree to pursue an expansion of the top flight......

Football club beats legal action
A High Court judge dismisses a winding-up petition against a Welsh Premier football club in a row over tax debts......

VIDEO: 'My 7k payday loan debt'
Meggan Tile describes how she lost sleep after borrowing seven thousand pounds from eight different payday loan lenders......

VIDEO: Payday loan firms warned by OFT
The payday loan industry has been warned to improve the way it lends money and collects debts, or face fines or closures......

VIDEO: Final typewriter made in UK
A typewriter, which its makers say is the last to be built in the UK, has been produced at a north Wales factory.....

VIDEO: Hovis bakery worker 'devastated'
A hovis worker in Birmingham says he is "devastated" by sudden news of the closure of the bakery in the city......

AUDIO: Why are Easyjet profits up 28%?
As Easyjet posts its full-year results, the chief executive tells 5 live why they will not board people by seat row......

VIDEO: Moody's downgrades France's credit rating
Moody's downgraded France's debt from Aaa to Aa1, and kept its negative outlook, meaning it could be cut again......

VIDEO: Energy firms forced to limit tariffs
The government forces energy companies to limit the number of gas and electricity tariffs......

VIDEO: Europe mulls perfume ingredient ban
The European Commission is to consider restricting 12 ingredients used in the production of perfume which it is thought can cause allergic reactions in users......

The psychology of the rogue trader
What makes some traders go 'rogue'?.....

Consumer front line: Your experiences
Are you on the firing line of customer anger?.....

G-day: Insurance upheaval for men and women
Who will win and lose from gender neutral insurance changes?.....

Would you pay 20p to read an article?
Would you pay 20p to read an article online?.....

'Wise guys' turn oil into knowledge
Can oil really be recycled into knowledge?.....

CEO Guru: Dreams and ambitions
Why chief executives must learn to inspire.....

Does your sausage need protection?
Lincolnshire sausage can't have it but Melton Mowbray pork pies can.....

Q&A: EU budget battle
How much do you know about the EU's crunch summit?.....

Party leaders dominate CBI conference
Politicians dominate at CBI conference.....

Small firms prove 'easy to hack'
Expert warns small businesses are targets for hackers.....

U.S. Day Ahead: Deere results could show drought impact
Nov 20 - Deere, the world's largest agricultural equipment maker, is set to see higher profits from last year although that could be tempered by last summers severe drought......

Another ex-SAC manager arrested for insider trading
Nov 20 - A former hedge fund manager who worked for a fund affiliated with Steven A. Cohen's SAC Capital was arrested for alleged insider trading......

Daily Digit: HP takes $8.8 bln charge
Nov. 20 - Hewlett-Packard takes an $8.8 billion charge and sparks a war of words with the former management of Autonomy, the company it acquired last year.Conway G. Gittens reports......

FACTBOX: Tablets rule shopping lists - Reuters/Ipsos
/Ipsos poll......

Economy 2013: Fiscal cliff wont disappear - banking CEO
Nov 20 - Expect some progress on resolving the fiscal cliff in 2012 but there will still be lingering issues in 2013 according to Bill Cheney, CEO of the Credit Union National Association......

Trading at Noon: HP hit hard by accounting charge
Nov 20 - HP said it took an $8.8 bln charge related to its acquisition of software firm Autonomy......

Breakingviews: HPs Autonomess
Nov. 20 - Rob Cox and Breakingviews columnists catalogue the history of dysfunction at Hewlett-Packard culminating in an $8.8 bln hit, amid charges of fraud, over the acquisition of Autonomy......

Europe Day Ahead
Nov. 20 - A look to the close of the European markets and a look ahead to the next day's trading, as well as what to expect from the Asian markets overnight......

After downgrade, France pushes reforms
Nov. 20 - French officials have leapt to the defence of their economy, after Moody's became the second ratings agency to strip Paris of its AAA rating. Analysts say France has some fundamental problems such as its lack of competitiveness, but some sa.....

Euro zone on brink of Greek aid deal
Nov. 20 - Euro zone finance ministers are aiming to approve the next tranche of loans to Greece, although the money is unlikely to be disbursed before December and a deal on debt reduction may need further talks. Ciara Sutton reports.....

3XSQ: Hewlett-Packard takes $8.8 bln charge
Nov 20 - Hewlett-Packard saying it found "serious accounting improprieties" at software firm Autonomy which appear to have been part of a willful effort to mislead investors and potential buyers......

Daily Digit: easyJet's soaraway success
Nov.20 - British low-cost airline easyJet will raise dividends after outperforming the sector with a 28 percent rise in full-year profit helped by a surge in late summer demand. Sonia Legg reports.....

U.S. Morning Call: HP revenue slightly lower than expected
Nov 20 - Hewlett-Packard Co's quarterly revenue fell short of Wall Street expectations as the company's share of the personal computer market shrank and sales of its printers declined......

Wealth Strategies: Obamacare to benefic HCA, UnitedHealth
Nov. 20 - GAMCO's Jeff Jonas says there is selective strength in the healthcare industry with looming healthcare reform and likes hospital operator HCA and insurance company UnitedHealth.....

Breakingviews: Credit Suisse shrinks to fit
Nov. 20 - Credit Suisse is slashing headcount & making businesses more separate - is this the beginning of the end for the one-bank strategy? asks Breakingviews......

A family face-off over Singapore's F&N
Nov. 20 - A multi-billion dollar deal over F&N is set to become Southeast Asia's biggest, and has put the spotlight on the wealthy regional dynasties going head to head over the Singapore-based conglomerate......

Reuters Today: Moody's strips France of prized badge
Nov. 20 - Moody's strips France of triple-A rating, China FDI inflows slow, Gaza truce pressure builds & Olam battles Muddy Waters......

Daily Digit: China's foreign investment funk
Nov. 20 - Foreign direct investment into China has extended its longest run of declines in three years - but that's not necessarily a distress signal for the economy. Tessa Dunlop reports......

China's online shopping war leaves big boys bruised
Nov. 20 - About 200 million people are shopping online in China, leading to an explosion in e-retailing sites. But success is not guaranteed as competition grows increasingly cutthroat. Tara Joseph reports......

Stocks rally before France loses AAA
Nov. 19 - Summary of business headlines: Wall Street jumps 2 percent as Washington backs away from the fiscal cliff, Wal-Mart moves up dividend with fiscal cliff in mind, Existing home sales and homebuilder optimism point to continued rebound, Intel .....

Market Pulse: A gallic shrug for French downgrade
Nov. 20 - Moody's strips France of its AAA rating, but investors largely take it in their stride. Plus, Credit Suisse's shakeup, and the Glenstrata saga nears its conclusion......

New Intel CEO needs mobile roadmap
Nov. 19 - Can Intel go from being king of the PC market to a master of mobile? A fund manager and an analyst tell us what three steps the incoming CEO needs to make. Carmen Roberts reports......

U.S. Day Ahead: The fiscal cliff saga - enter Bernanke!
Nov 19 - Markets are focusing on what Fed Chair Ben Bernanke says about the fiscal cliff when he speaks in New York about the recovery and Fed policy......

Daily Digit: "Twilight" rings up $341 mln
Nov. 19 - "The Twilight Saga: Breaking Dawn - Part 2" makes $341 million worldwide in its first weekend. Conway G. Gittens reports......

Trading at Noon: Apple shines and so does Wall Street
Nov 19 - Apple stock rises nearly 5 pct today after a rough run, and U.S. stocks climb above 1 percent on optimism over budget talks......

Autonomy accused of 'serious accounting improprieties' in explosive HP dispute
British entrepreneur Mike Lynch has angrily rejected allegations made on Tuesday that his software company Autonomy inflated its financial results before selling it to Hewlett-Packard for $11.1bn (7bn).<img width='1' height='1' src='http://telegra.....

Argentina hit by nationwide strike over pay
Argentine President Cristina Fernandez faced a nationwide strike on Tuesday, led by the union bosses who used to be her most steadfast supporters.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/25c9e383/mf.gif' b.....

Clouds roll in over HP and 'great British success story' Autonomy
Hewlett Packard's acquisition of Autonomy has been a headache from the start, but new revelations threaten to turn the takeover into an outright disaster.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/25c92ee8/m.....

France 'deplores' Moody's over loss of 'AAA' rating
France's foreign minister said on Tuesday he "deplored" the decision of Moody's to strip the country of its AAA credit rating but still dismissed the downgrade as irrelevant.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f.....

Kweku Adoboli was the author of his own downfall
Apologetic email led to uncovering of huge fraud that cost his bank 1.4bn and sent him to jail for seven years.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/25c91645/mf.gif' border='0'/><br/><br/>.....

Profile: Mike Lynch, founder of Autonomy
Autonomy founder Mike Lynch made an unusual FTSE 100 chief executive.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/25c91646/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/1.....

Victim or fool? Hewlett Packard falls for oldest trick in the (cooked) book
Never invest in something you don't fully understand. Few stocks provide better proof of this old investment saw than Mike Lynch's Autonomy.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/25c91419/mf.gif' border=.....

InterContinental Hotels climbs on investor cash hopes
The hotel group was one of the FTSE 100's biggest risers.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/25c9141a/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/148660085772/.....

Ben Bernanke steps up warning over America's 'fiscal cliff'
Fears over America's looming "fiscal cliff" of tax hikes and spending cuts are already holding back growth in the world's largest economy, the head of the US Federal Reserve has warned.<img width='1' height='1' src='http://telegraph.feedsportal.co.....

Ben Bernanke warns Congress to avoid 'fiscal cliff'
Fears over America's looming "fiscal cliff" of tax hikes and spending cuts are already holding back growth in the world's largest economy, the head of the US Federal Reserve has warned.<img width='1' height='1' src='http://telegraph.feedsportal.co.....

Reformed regulation is more complicated, Bill Winters tells TSC
Weak governance at the Bank of England risks leaving the UK with a leadership vacuum in the next financial crisis, despite far-reaching reforms to put the central bank in charge, Bill Winters, a member of the Government's banking committee, has warne.....

Xstrata's merger with Glencore claims chair Sir John Bond's scalp
Mining's biggest ever deal, the tie-up of Glencore and Xstrata, got the greenlight from investors - but Sir John Bond, Xstrata's chairman, resigned after they vetoed bonuses.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f.....

More QE would cause inflation, Martin Weale warns
More money printing or lower interest rates would simply stoke inflation without driving growth, a Bank of England policymaker has warned.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/25c90a7e/mf.gif' border='0.....

SAC Capital executive arrested in $276m insider dealing case
A senior executive with hedge fund SAC Capital has been arrested in what US prosecutors are claiming is the largest case of alleged insider-dealing ever charged.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/25c.....

SAC Capital executive arrested in $276m insider dealing case
A senior executive with hedge fund SAC Capital has been arrested in what US prosecutors are claiming is the largest case of alleged insider-dealing ever charged.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/25c.....

Debt crisis: as it happened - November 20, 2012
Eurogroup leader Jean-Claude Juncker and Finland raise doubts about reaching a deal on Greek aid as eurozone finance minister prepare to meet in Brussels later today.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/.....

Eurozone split over Greek debt
Greece's international lenders remained split on how to deal with Greece's next loan deal and it was not clear if a deal would be reached at a key meeting being held in Brussels this evening, which could be set to turn into an all-nighter.<img wid.....

New Look plans 1.1bn refinancing as store revamp boosts sales
New Look is planning to refinance its 1.1bn of debt in the next 18 months as part of a vital turnaround plan for the private equity-owned fashion retailer.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/25c90a83/.....

Premier Foods is a 'disaster story' say trade unions after 900 Hovis jobs cut
Trade unions have lambasted Premier Foods as a "disaster story" after the owner of Hovis announced it will close two bakery sites and cut 900 jobs - 10pc of the group's workforce.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32.....

Business needs to engage in shaping Britain's post-EU future
There is a very good reason why so few business people make it big in Westminster: they are shockingly bad at the dark arts of politics.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/25c88be5/mf.gif' border='0'/.....

Enterprise Inns faces 'brighter future' despite Olympics hit to sales
Enterprise Inns boss Ted Tuppen insisted the pubs group is no longer in "zombie" territory after paying down 300m of debt and returning to the black over the last 12 months.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/.....

Debt crisis: Eurozone remains split on Greek aid - live
Eurogroup leader Jean-Claude Juncker and Finland raise doubts about reaching a deal on Greek aid as eurozone finance minister prepare to meet in Brussels later today.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/.....

OFT investigates payday loan companies amid 'serious concerns'
The Office of Fair Trading has launched "formal investigations" into payday lenders amid "serious concerns" for vulnerable people who are offered inappropriate loans and are then subject to "aggressive" debt collectors.<img width='1' height='1' sr.....

Mortgage lending hits 11-month high in October
Mortgage lending reached an 11-month high in October, providing evidence that the housing market is finally picking up after a lull in recent months, lenders said.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2.....

Windfall for Sir Stelios as easyJet profits soar
EasyJet founder Sir Stelios Haji-Ioannou and his family are in line for a 32m windfall after the low-cost airline more than doubled its dividend amid record profits.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s.....