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Wednesday 30 January 2013

UK Financial News on 2013-01-30

US economy in surprise downturn
The US economy unexpectedly shrank at an annualised rate of 0.1% in the fourth quarter of 2012, official figures indicate......

UK petrol market 'working well'
The OFT says petrol and diesel competition is working well in the UK but motoring organisations are unhappy with the findings......

Facebook's profits drop sharply
Facebook reports a sharp drop in profits, partly due to increased spending on research and development......

US interest rates kept on hold
The Federal Reserve confirms it will keep interest rates at near-zero at least until the US jobless rate falls below 6.5%......

Barclays 'ignored pay warnings'
Ex-Barclays boss Bob Diamond was "reluctant" to agree that pay at the bank was too high, a former employee tells a Parliamentary commission......

Spanish economic decline worsens
Spain's economic downturn worsened in the last three months of 2012, official data indicates, while across the eurozone retail sales continued to fall......

Mortgage approvals pick up again
The number of mortgages agreed by lenders for home buyers has risen for the fifth month in a row, figures from the Bank of England show......

UK first to get Blackberry 10 phone
The first handsets to be powered by the new Blackberry 10 operating system are unveiled in New York. The UK is first to get the touchscreen Z10......

Boeing reports record revenues
Boeing says its revenues in the last quarter of 2012 reached a record $22bn, just before its flagship Dreamliner was grounded due to a battery fault......

BP record $4bn penalty approved
A US court approves the biggest criminal fine in US history given to British oil giant BP as part of a settlement related to the fatal 2010 Deepwater Horizon disaster......

Tesco drops supplier over horsemeat
Tesco drops supplier Silvercrest for using meat that was not from "approved suppliers", after horse DNA was found in the supermarket chain's value burgers......

Zimbabwe 'had $217 in account'
Zimbabwe's Finance Minister Tendai Biti says that the country only had $217 (138) left in its public account last week after paying civil servants......

H&M profits fall on higher costs
Fashion retailer Hennes & Mauritz (H&M) blames higher costs and investment in new brand & Other Stories for its falling three month profits......

Mothercare Australia collapses
The Australian version of Mothercare enters into administration, sending shares in London down 2.8%......

Shell 'happy' over Dutch verdict
A Dutch court rejects four out of five allegations against Anglo-Dutch oil giant Shell over oil pollution in Nigeria's Niger Delta region......

Japan firms 'changed' 787 battery
Japan's two top airlines say they replaced a number of batteries in the 787 Dreamliners over the past months......

Call for soft-drink sugar tax
Leading medical bodies and charities are calling for a levy on sugary drinks to be included in this year's Budget......

Mortgage lending set to increase
Wales' biggest building society sets out plans to boost mortgage lending by 50% over the next five years as it reports a steady year in profit......

House prices 'see 2012 pick-up'
House prices in England and Wales rose by 1.7% in 2012 - driven by rising values in London, the Land Registry says......

PPI complaints 'at 11,000 a week'
A record level of 11,000 complaints a week about mis-sold Payment Protection Insurance (PPI) were made to an ombudsman between October and December......

Boards need more women, Cable says
The business secretary seeks to turn up the pressure by writing to the seven FTSE 100 firms with no women on their boards, to ask what they are doing to increase diversity......

US housing recovery gains steam
The rebound in US house prices gained momentum in November, but consumer confidence in the country took a hit in January, data suggests......

Israel central bank chief resigns
Stanley Fischer, the governor of the Bank of Israel, is to step down on 30 June, two years before his term is due to end......

Amazon announces lower profits
The online retailer Amazon has announced a fall in quarterly profits, despite an increase in revenues during the period......

Nintendo cuts Wii sales forecast
Nintendo cuts its sales forecast for its Wii-U and other consoles, but still expects to make a profit for the year to March thanks to the weaker yen......

US judge rejects Apple's demand
A US judge rejects Apple's demand to increase the damages from Samsung's patent infringement to more than the $1.05bn awarded......

Cycling gets 62m funding boost
The government announces more than 60m of investment in facilities for cyclists in England......

MPs tell football it must reform
English football is told to introduce reforms within the next year or expect the government to bring in legislation......

Online growth boosts William Hill
Britain's biggest bookmaker William Hill predicts better-than-expected full year results after reporting strong growth in its online business......

VIDEO: Attitudes to fuel in Belgium and Venezuela
The BBC's Matthew Price and Sarah Grainger compare the attitudes to and costs of fuel in Belgium and Venezuela......

VIDEO: Blackberry 10 TimeShift and BB Balance
The first two handsets powered by the new Blackberry 10 operating system have been unveiled, at a launch event in central London......

VIDEO: Petrol market working, says OFT
There is no need to investigate the UK petrol and diesel market a report by the Office of Fair Trading has found......

VIDEO: The 'nuclear hotline' economist
Economist Tim Harford tells an assembled audience the story of Thomas Schelling, an economist who helped America and the Soviet Union to avoid nuclear war......

VIDEO: Cumbria votes on nuclear waste store
Three councils in Cumbria are due to vote on whether to continue with plans for a 12bn underground storage facility for nuclear waste......

AUDIO: Could brand sponsors affect landmarks?
The Italian fashion house Fendi has announced it is to sponsor the Trevi Fountain in Rome, and is looking at sponsoring others, too......

VIDEO: Tesco drop supplier over horsemeat
Meat in Tesco burgers which was found to contain horse DNA did not come from a list of "approved suppliers", the supermarket chain has claimed......

AUDIO: Benefits on pre-paid cards?
A report published today has proposed that state benefits be paid onto pre-paid cards which preclude spending on non-essential items......

The benefits system and you
How to claim your financial entitlements.....

Ireland presses EU for debt deal
Dublin presses EU to reduce debt owed on loans to bail out banks.....

Chinese brands tap Hollywood in quest to go global
Chinese brands tap Hollywood in quest to go global.....

Blackberry 10 underpins revival hope
Will BB10 smartphones revive RIM's fortunes?.....

U.S. Day Ahead: FB stabilizes after tumbling post results
Jan. 30 - Facebook investors give a knee-jerk reaction to the company's results, despite its revenue growing at a better-than-expected 40%......

Saft says: Fed surprising no one by keeping rates on hold
columnist James Saft says the Fed did as expected by saying highly accommodative policy will remain for considerable time after asset purchase program ends and economy strengthens......

Daily Digit: 15% drop in govt spending
Jan. 30 - A 15 percent drop in federal government spending leads the U.S. economy to its first contraction since the 2007-09 recession. Conway G. Gittens reports......

How the Fed built a $3 trillion balance sheet
The Federal Reserves amazing asset accumulation was spurred by the financial crisis but it continues to this day. Heres how Ben Bernanke & Co. filled the central banks coffers with bonds. Next stop: $4 trillion......

Reuters Right Now: Fed eyes Sandy for shrinking Q4 GDP
Fed Correspondent Pedro Da Costa......

Techquity: Amazon scores, Blackberry squashed
Jan 30 - Amazon jumps after strong results while Research in Motion slips as its launches new Blackberry......

EU freezes Polish road funding over fraud
Jan. 30 - Warsaw calls the European Union decision to freeze about 890 million euros in aid earmarked for building Polish roads, "completely incomprehensible" because of a suspected fraud by contractors. Ciara Sutton reports......

Trading at Noon: RIM no more, it's all about Blackberry
Jan 30 - Shares of RIMM are falling after it renamed itself Blakcberry, hoping for a fresh start......

Breakingviews: Amazon and bananas
Jan 30 - Jeffrey Goldfarb talks to Breakingviews columnists about the head-scratching discrepancy between the way investors are looking at Amazon and Apple......

Wealth Strategies: GDP's drop shouldn't rattle investors
Jan 30 - Wells Fargo's Ann Miletti says that she's not worried about owning slower-growth companies like grocery chain Kroger, as long as there is an opportunity to buy the stocks at a discount......

RIM changes name, unveils BlackBerry 10 in comeback bid
Jan. 30 - BlackBerry-maker Research in Motion CEO Thorsten Heins announces the company's new name while launching its new BlackBerry 10 devices. Rough Cut (no reporter narration)......

Europe Day Ahead: Earnings Galore
Jan. 30 - A look at Thursdays key events including a raft of corporate results from Deutsche Bank, Santander, Shell, Ericsson, Diageo and LVMH......

FACTBOX: U.S. economy unexpectedly shrinks
Jan. 30 - Investors and analyst are caught off guard as the economy contracts in the fourth-quarter against all estimates......

3XSQ: GDP contracts 0.1% on tepid inventories
Jan 30 - The economy unexpectedly contracted in the fourth quarter, suffering its first decline since the recession ended more than three years ago......

Shell partly responsible for Nigeria spills
Jan. 30 - A Dutch court rules that Royal Dutch Shell can be held partially responsible for pollution in the Niger Delta in southern Nigeria, saying the company should have prevented sabotage at one of its facilities. Ciara Sutton reports......

Daily Digit: Spain's recession deepens
Jan. 30 - Spain's GDP shrunk by 0.7 percent in the fourth quarter of 2012, it's sixth straight quarter of contraction, as unemployment soars. Hayley Platt reports......

India rate cut "a step in the right direction"
India's finance minister says he welcomes the decision by the country's central bank to lower its key policy rate on Tuesday. Rough Cut (no reporter narration)......

U.S. Morning Call: Boeing earnings beat forecasts
Jan 30 - Boeing's earnings per share for the fourth quarter came in above estimates, but revenues just missed forecasts at $22.3 billion......

No global currency war yet: Indian finance minister
Jan. 30 - Indian Finance Minister Palaniappan Chidambaram says its too early to talk of an FX war, but if any countries follow Japan and depreciate their currencies, Indias exports will be badly hurt......

Reuters Breakingviews: Bank of Italy didn't push hard enough on MPS
The scandal at Italys third largest bank Monte dei Paschi threatens the Bank of Italy and its former governor and current ECB chief Mario Draghi.....

BlackBerry: Don't call it a comeback ... yet
Jan. 30 - Its been tough watching the old champ waste away to just a shadow of its former glory. But BlackBerry-maker RIM is plotting a comeback, and it might gain some traction with its newest models......

Reuters Today - Earnings bonanza. Spain GDP falls. BB10 out
Roche delivers a cautious outlook. H&M results disappoint. Spains economy shrinks again in the fourth quarter. Plus, RIM launches the Blackberry 10......

Microsoft cuts Office cord
Jan 29 - Microsoft launches its Office 365 software for consumers, with constant updates and online access to documents as the software giant attempts to fine-tune its lucrative software for the mobile age. Conway G. Gittens reports......

Microsoft's new Office is a necessary refresh - analyst
Jan. 29 - With competition breathing down its neck, Microsoft had to come out with new Office, says Norman Young, senior equity analyst with Morningstar. But the product is still just an update. Conway G. Gittens reports......

Earnings drive Amazon to record high
Jan 29 - Summary of business headlines: Amazon reports highest profit margin in years, Ford and Pfizer beat forecasts, Microsoft's new Office software launches, consumer confidence drops. Bobbi Rebell reports......

Blackrock takes 8pc stake in Manchester United
Investment firm buys 3.3m shares in football club, giving it an 8pc stake.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/28122948/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.co.....

Facebook sales jump 40pc to $1.59bn
Facebook has reported fourth-quarter sales of $1.59bn (1bn), as the social network learned to translate the rapid growth in smartphone users into revenue.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2811ea2f/m.....

Italy risks political crisis as MPS bank scandal turns 'explosive'
Italian magistrates investigating losses at Banca Monte dei Paschi say the mushrooming scandal has taken a dramatic turn.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2811e7ce/mf.gif' border='0'/><br/>.....

US economy has 'paused', says Federal Reserve
The Federal Reserve left its ultra-loose monetary policy unchanged on Wednesday, saying the US economy had "paused" in recent months largely due to transitory issues.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/.....

David Cameron is right on EU, says Bundesbank's Jens Weidmann
Bundesbank President Jens Weidmann has said David Cameron is right to push for the EU to be more open and competitive.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/28119aee/mf.gif' border='0'/><br/><.....

EU must be more competitive, says Bundesbank's Jens Weidmann
Bundesbank President Jens Weidmann has agreed with David Cameron that the EU must be more open and competitive.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/28115c7f/mf.gif' border='0'/>.....

No one can afford to ignore the smartphone revolution
The juggernaut growth of smartphones marks a major opportunity for businesses to capitalise on changing consumer habits - whether they are Shoreditch technology start-ups launching new apps or established businesses using the devices to learn more ab.....

Shrinking European car market hits Johnson Matthey
Airbag and wiper problems have led to the recall by the Japanese giant.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2810bf05/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r.....

Facebook sales set to jump 34pc to $1.52bn
Facebook was expected to report fourth-quarter sales of $1.52bn (960bn) on Wednesday evening, as the social network learned to translate the rapid growth in smartphone users into revenue.<img width='1' height='1' src='http://telegraph.feedsportal......

Boeing: solving Dreamliner problem is top priority for 2013
Boeing said its top priority for 2013 would be to resolve the safety concerns plaguing its Dreamliner fleet of 787 aircraft, but gave no guidance on when that might be.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56830.....

Europe's car market: not dead yet
Airbag and wiper problems have led to the recall by the Japanese giant.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2810bf0b/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r.....

Smartphone surge hits Nintendo and Canon
Nintendo slashes sales forecasts while profits tumble at Canon.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2810bbba/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/1559843.....

Enjoy the stock market rally while it lasts
Stock markets have been surging, but for how much longer can they defy gravity, given evident constraints on growth and the run of disappointing economic indicators and earnings updates?<img width='1' height='1' src='http://telegraph.feedsportal.c.....

Oil services companies hit by Saipem warning
Petrofac, John Wood Group and Amec all lost ground today.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2810bbbd/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/155984381179/.....

Mortgage lending 'at strongest since crisis'
Lending in the housing market is at its healthiest since the financial crisis, according to economists.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2810b96c/mf.gif' border='0'/><br/><br/><a h.....

Barclays former pay boss said Bob Diamond should have got 'zero bonus'
Barclays former pay boss urged the bank to give Bob Diamond "zero bonus" but was over-ruled by the rest of the board, the Commission on Banking Standards has been told.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56830.....

Alison Carnwath wanted 'zero bonus' for Bob Diamond
Barclays former pay boss urged the bank to give Bob Diamond "zero bonus" but was over-ruled by the rest of the board, the Commission on Banking Standards has been told.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56830.....

10 best money saving apps
Whether you own a smartphone or tablet these apps may make a difference to your wallet.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/280e8864/mf.gif' border='0'/><br/><br/><a href="http://da.f.....

Chart: How tax on petrol has soared
OFT report concludes petrol price rises due to fast-rising taxes.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2810b1c3/mf.gif' border='0'/>.....

Mothercare Australia collapses into administration
The Australian arm of Mothercare has collapsed into administration on a day of upheaval for the baby clothing and equipment retailer that also saw its UK managing director depart.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32.....

H&M profits fall as it invests in battle with Inditex
H&M has suffered a setback in the battle between the two biggest clothing retailers in the world after its profits fell in the final quarter of its financial year.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300.....

Alison Carnwath wanted 'no bonus' for Bob Diamond
Bob Diamond, the former Barclays chief executive, should have received no bonus for 2011 according to the woman who oversaw executive pay at the bank.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/280f91a8/mf.gi.....

WWF to launch mobile network
Network pledges 10pc of revenues to WWF's conservation work.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/280e8867/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/1559843408.....

Boeing sees no significant hit from Dreamliner
Boeing posted stronger-than-expected profit on Wednesday as its backlog of orders rose, and said its 2013 forecast assumed no significant impact from the grounding of its 787 Dreamliner jet by regulators.<img width='1' height='1' src='http://teleg.....

Shock 0.1pc decline in US growth: reaction
The US economy unexpectedly contracted 0.1pc in the fourth quarter, suffering its first decline since the 2007-09 recession as businesses scaled back on restocking and government spending plunged. This is how economists reacted:<img width='1' heig.....