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Wednesday 20 March 2013

UK Financial News on 2013-03-20

Osborne: Stick with us despite gloom
The chancellor halves his economic growth forecast - but announces measures to help businesses, homebuyers, drivers and beer drinkers......

Economic growth forecast is halved
The official forecast for growth in the UK economy is cut from 1.2% to 0.6% by the independent Office for Budget Responsibility......

Infrastructure spend boosted by 3bn
The government says it will spend an extra 3bn a year to fund infrastructure projects in hope of boosting economic growth......

National Insurance cut to boost jobs
Companies in the UK are to get up to 2,000 off their National Insurance Contributions (NIC) in an attempt to boost job creation, the chancellor announces......

New help for home-buyers outlined
Chancellor George Osborne announces a new Help to Buy scheme, aimed at helping people to buy their own homes......

Cyprus 'to present new bailout plan'
The president of Cyprus will on Thursday present political leaders with a "Plan B" for funding the country's controversial bailout, state TV says......

Cyprus banks shut until next week
Cyprus's banks are to remain shut until at least next Tuesday as the cabinet meets in emergency session after a eurozone bailout was rejected......

Barclays execs earn 39m in shares
Barclays awards nine senior staff shares worth nearly 39m in long-term bonuses, including 17.5m for investment bank chief Rich Ricci......

IMF head Lagarde's flat searched
French police search the Paris apartment of IMF chief Christine Lagarde, in an inquiry into alleged abuse of her authority when finance minister......

Fed cautious on US economic recovery
The US Federal Reserve says the economy has strengthened "moderately" but still needs stimulus measures to underpin recovery......

London Market Report
London shares close slightly lower as investors give a muted response to Chancellor George Osborne's latest Budget......

UK unemployment rises to 2.52m
Unemployment rose by 7,000 to 2.52 million between November and January, according to official figures......

Lufthansa calls off 500 flights
German airline Lufthansa, Europe's largest by revenue, cancels more than 500 flights in advance of a mass walkout on Thursday......

Bank of England still divided on QE
Members of the Bank of England's rate-setting committee remain divided over whether to inject more stimulus money into the UK economy, minutes of its March meeting reveal......

Volkswagen in record recall in China
Volkswagen says it will recall 384,181 vehicles in China to replace a part of their gearboxes, its largest recall in the country to date......

Apple 'losing inspiring reputation'
Technology giant Apple is perceived as less "inspiring" than it was three years ago, a brand survey suggests......

Firm fined 90,000 over cold-calling
A Scottish fitted kitchen company becomes the first firm in the UK to be fined for "blighting" the public with thousands of unwanted marketing calls......

Fashion retailer Asos in sales boost
Online fashion retailer Asos bucks the gloomy retail trend with a sales rise of 37% year-on-year......

Greggs sees full-year profits fall
Greggs, the UK's largest bakery chain, blames "challenging market conditions" and wet weather for a fall in full-year profits......

Marmite returns to New Zealand shops
'Marmageddon' over as New Zealand shops restock locally-made Marmite, after shortages caused by the Christchurch quake in 2011......

Public sector pay rise cap extended
A 1% pay rise cap for public sector workers will be extended for an extra year to 2015-16, Chancellor George Osborne announces......

More Equitable Life compensation
More pensioners are to be compensated for losing money on their pension investments with the collapsed Equitable Life insurance company......

Parents 'to get 20% childcare costs'
Some parents in the UK will be able to claim back up to 1,200 a year for each child - or 20% of childcare costs - from 2015, under government plans......

Asia currencies gain on Cyprus fears
Asian currencies continue to strengthen as uncertainty over the developments in Cyprus hurts the euro......

Fuel costs push inflation to 2.8%
UK consumer price inflation rises to 2.8% in February thanks in part to rising energy prices, including household fuel bills......

New nuclear power plant approved
Energy Secretary Ed Davey gives the go-ahead for the first of a planned new generation of nuclear power plants in the UK......

Ryanair in new expansion drive
Ryanair is planning to increase its aircraft fleet by a third to 400 planes after ordering 175 planes from Boeing......

Sainsbury's annual sales grow 2.1%
The supermarket chain Sainsbury's reports higher sales for the year to the end of March and record customer numbers......

VIDEO: Cable: 'Economy is flat lining'
The government "cannot predict" when the austerity measures will end, the business secretary has said......

VIDEO: Cut in corporation tax to 20% from 2015
The chancellor announced that corporation tax would be cut by 1% to 20% from April 2015, and claimed it showed that Britain was "open for business"......

VIDEO: Tax avoiders 'won't get away with it'
George Osborne said his Budget was introducing "one of the largest ever packages of tax avoidance and evasion measures"......

VIDEO: Will the Budget fix the economy?
Business leaders have given a cautious welcome to George Osborne's Budget plans, despite the chancellor being forced to slash growth forecasts......

VIDEO: Budget 'absolutely disgusting'
Three pensioners in Plymouth have been giving their reactions to Wednesday's budget.....

VIDEO: How will the Budget hit families?
Families and small business owners have been giving their reaction to the chancellor's fourth Budget......

VIDEO: 'I am going to level with people'
George Osborne said he was "going to level with people" as he admitted the government had more work to do on the UK economy and "it's taking longer than anyone hoped.".....

VIDEO: Labour: 'Downgraded chancellor'
Labour leader Ed Miliband has accused the chancellor of delivering "a more of the same Budget" in response to downgraded growth forecasts......

Budget calculator 2013
How will the chancellor's Budget affect you?.....

How is borrowing not up this year?
How is government borrowing not up this year?.....

Budget 2013: National Insurance, the Cinderella tax
Why National Insurance cuts could make a huge difference.....

VIDEO: The electric car with an extra kick
The electric car that disproves that battery power is boring.....

Kurdish oil exports stall in row
A row has cast a shadow over exports from oil rich Kurdish Iraq.....

Cyprus crisis: What happens next?
Cyprus scenarios: From euro exit to new Russian support.....

Is inflation making you poorer?
How much are rising prices affecting you?.....

Cyprus crisis stalls financial lives
Homeowners and businesses face uncertainty.....

U.S. Day Ahead: 5 million reasons to watch home sales
Mar 20 - Existing home sales expected to hit a level not seen since 2009......

Saft Says: More worried about Cyprus than Bernanke
Columnist James Saft says he's more worried about the impact of Cyprus on markets than Fed Chair Ben Bernanke who said he doesn't it being a major risk to the U.S. economy......

ROTH 2013: Reed CEO - oil engineer to soda entrepreneur
Mar. 20 - Chris Reed, CEO of soft drink maker Reed's Inc., started brewing soda in Venice Beach 25 years ago and now expects to grow his market outside of traditional health food markets. One fan: Snoop Dogg......

British budget offers hope but little change
March 20 - British finance minister George Osborne delivers another austerity budget to a country impatient with near-zero growth. Joel Flynn looks at the headline announcements and asks whether they'll help reduce the UK's 1trl debt problem......

Daily Digit: Lennar's $1.5 billion
March 20 - Lennar, the No. 3 U.S. homebuilder, has a demand backlog worth $1.5 billion, as new orders rose 34 percent to 4,055 homes. Conway G. Gittens reports......

Techquity: Facebook advertising concerns, Schmidt vs. Apple
Mar 20 - Facebook's latest advertising initiative criticized by an analyst while Google's Eric Schmidt goes after Apple's legal tactics......

Breakingviews: Putting Martin Lipton on ice
March 20 - Breakingviews editors discuss why companies need more up-to-date responses to shareholder activism than those offered by Wachtell, Lipton's king of takeover defense......

Europe Day Ahead: Flash PMIs, earnings from H&M and Hermes
Mar. 20 - Investors brace for flash German, French, euro zone PMIs, a Spanish and UK bond auction. Plus, earnings from H&M and Hermes......

Trading at Noon: U.S. stocks rebound after 3-session decline
Mar 20 - U.S. stocks rising ahead of an announcement by the Federal Reserve about whether to push ahead with aggressive measures to boost the economy......

Scientists see extinct frog resurrection as great leap forward
March 20 - Like the plot of the blockbuster movie, Jurassic Park, an effort to revive an extinct species of frog is showing signs of success in a laboratory in Australia. Scientists at the University of Newcastle, part of the so-called Lazarus Projec.....

Wealth Strategies: Apple won't be a tech leader in 2013
Mar 20 - Lipper Award Winner Walter Price says Apple will struggle to deal with competition in 2013 and instead likes names like Salesforce.com (CRM) and Angie's List (ANGI).....

UK Budget: Britain's growth halved
March 20 - British finance minister George Osborne has turned to the Bank of England to do more to help spur the country's stagnant economy as he announced a halving of this year's growth forecast. Rough Cut (no reporter narration)......

Bank of England told to do Fed impression
Mar. 20 - BoE will look more like the Federal Reserve after a new remit from the UK government requires more forward guidance. So say NAB currency strategist Nick Parsons and head of market economics Tom Vosa......

Cyprus seeks Russian rescue
March 20 - Cyprus has pleaded for a new loan from Russia to avert a financial meltdown but there's no sign yet of a deal to avert financial meltdown following the rejection of an EU bailout. Sonia Legg reports......

UK Budget 2013: Dear BoE, please help
Mar. 20 - UK Chancellor George Osborne looks to the BoE for more help in todays budget. Full analysis from the NAB trading floor with currency strategist Nick Parsons and head of market economics Tom Vosa......

In the Boardroom: Its a marathon not a sprint - John Kay
Mar. 20 - Lucy Marcus talks to Economist, John Kay about how boards can ditch short-termism, improving investor relationships for long-term success......

U.S. Morning Call: FedEx posts 31% drop in quarterly profit
Poll of $1.38......

Daily Digit: Deutsche Bank's litigation bill
March 20 - Deutsche Bank says if will lower its 2012 pretax profit by 600 million euros ($773 million) hit by new charges related to mortgage-related lawsuits and other regulatory investigations. Hayley Platt reports......

One in five reptiles threatened with extinction, says study
March 20 - A landmark study has concluded that almost one in five reptile species are threatened with extinction. The more than 200 world experts involved in the study say loss of habitat is the driving force behind the plummeting reptile populations.....

Reuters Breakingviews: Europe should hold firm on Cyprus
Mar. 20 - The Cyprus bailout has become a geopolitical standoff between the euro zone and Russia, says Breakingviews, and Europe should hold firm. Plus why gas shouldnt be a factor and a renegotiated EU deal is the least worst option......

Fewer claimants, not much growth the UKs riddle
Mar. 20 - The UK claimant count hits a 20-month low, but with wage growth at three-year lows is there any hope of a growth turnaround? We ask UK jobs minister Mark Hoban......

Cyprus suffers from scaremongering Iron FXs Gittler
Mar. 20 - What would be the point of an agreement that allowed the financial system to collapse? Iron FXs Marshall Gittler tells us why scaremongering is making the situation in Cyprus seem worse than it is......

China's new reformers - in name only?
Mar. 20 - China's equity markets need beefing up and state-owned enterprises should be taken down a peg. Breakingviews' John Foley looks at whether those installed by the new leadership are up to the job......

Despite issues, miners still see Indonesia as land of plenty
Mar. 20 - Worries over resource nationalism are causing some companies to rethink their Indonesia investments, but Peter Albert, CEO of mining company G-Resources, is optimistic about the country's prospects......

Reuters Today: No deal throws Cyprus bailout into disarray
Mar. 20 - Cypriot leaders holding crisis talks to avert financial meltdown. Plus, UKS Osborne boxed in by austerity on budget day......

Budget 2013: 40bn infrastructure scheme could help underwrite nuclear projects
The Government has made a belated attempt to kick-start infrastructure spending with the promise of an extra 3bn a year from 2015-16 and the potential use of guarantees to fund new nuclear power plants.<img width='1' height='1' src='http://telegra.....

Budget 2013: Who was left disappointed by George Osborne?
Cocktail drinkers, air passengers, hotel owners and pensioners too: you were warned.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/29ccc0b6/mf.gif' border='0'/><br/><br/><a href="http://da.feed.....

The economy needs ashove, not a nudge
Telegraph View: This was as much a political as an economic Budget, designed to restore the Chancellor's credentials<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/29cca94f/mf.gif' border='0'/><br/><b.....

Budget 2013: A long, slow walk to recovery
George Osborne's Budget will do no harm to the economy, but it was far from being the transformative exercise the country needs, says Jeremy Warner<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/29cca51d/mf.gif' .....

Government cracks down on tax avoidance
The Government is aiming to claw back almost 5bn in a crackdown on tax avoidance and evasion that could see wrong-doers "named and shamed".<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/29cca764/mf.gif' border='.....

Government cracks down on tax avoidance
The Government is aiming to claw back almost 5bn in a crackdown on tax avoidance and evasion that could see wrong-doers "named and shamed".<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/29cca51e/mf.gif' border='.....

Budget 2013: Struggling shops could be turned into homes
Britain's property industry welcomed the news that planning rules might be relaxed to allow struggling retail properties to be converted into homes to help meet the country's housing shortage.<img width='1' height='1' src='http://telegraph.feedspo.....

Budget 2013: OBR halves growth forecasts as UK pushes up debt load
UK will dodge triple-dip recession but recover more slowly.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/29cca950/mf.gif' border='0'/>.....

Budget 2013: OBR halves growth forecasts as pushes up debt load
Britain will dodge a triple-dip recession but will recover more slowly than previously expected, the independent fiscal watchdog warned, as it halved its growth forecasts for 2013.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/3.....

Budget 2013: OBR halves growth forecasts as pushes up debt load
Britain will dodge a triple-dip recession but will recover more slowly than previously expected, the independent fiscal watchdog warned, as it halved its growth forecasts for 2013.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/3.....

'Aspiration nation' drive centres on small businesses
Small businesses were put at the heart of efforts to rebuild Britain's battered economy as the Chancellor attempted to unleash an "aspiration nation".<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/29cca766/mf.gi.....

'Aspiration nation' drive centres on small businesses with cut to jobs levy
Small businesses were put at the heart of efforts to rebuild Britain's battered economy as the Chancellor attempted to unleash an "aspiration nation".<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/29cca524/mf.gi.....

Bank gets radical new powers to help boost growth and jobs
The Bank of England has been handed new powers to target unemployment and boost growth in a radical overhaul of its 15-year old remit.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/29cca525/mf.gif' border='0'/&g.....

Budget 2013: Housebuilders' shares soar as Osborne promises billions
Homebuilders' shares soared after the Chancellor committed billions of pounds of Government backing to get the housing market moving.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/29cca526/mf.gif' border='0'/>.....

Budget 2013: Bank levy increased for sixth time since introduction
The tax on bank balance sheets has been increased for a sixth time since being introduced two years ago as the Government moved to ensure its levy would raise its annual target of 2.5bn.<img width='1' height='1' src='http://telegraph.feedsportal.c.....

Budget 2013: Asset managers to benefit from tax change
Stamp duty on UK funds is to be scrapped in an effort to bolster the competitiveness of the asset management industry.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/29cca528/mf.gif' border='0'/><br/><.....

Budget 2013: How George Osborne buried the bad news on borrowing
Following George Osborne's 2013 Budget, economic commentator Liam Halligan sifts through the fine print and reveals what the Chancellor did not say.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/29cca529/mf.gif'.....

Countrywide shares brighten up a grey day as Budget renews optimism
Estate agency giant leaps 13.4pc on its first day of "grey market" trading.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/29cca52a/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.c.....

Budget 2013: Tax relief to tackle sickness absence
Emlpoyers are in line to get tax relief worth up to 500 per worker to pay third-party providers to help tackle workplace absence.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/29cc2786/mf.gif' border='0'/><.....

Cyprus bail-out - live
Banks in Cyprus will not re-open until at least Tuesday, the central bank announced, as 'Plan B' looks set for rejection by Troika.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/29c4d28c/mf.gif' border='0'/>&.....

Budget 2013: Victory for business over tax rule for state contracts
Companies bidding for state contracts will not have to prove that they have clean tax records dating back 10 years after the Government ditched the retrospective proposal.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56.....

Banks still shut in Cyprus as island fights to stave off collapse
The Cypriot financial system stands on the edge of collapse as local banks on Wednesday remained closed and the European authorities warned they could begin withdrawing support for the country within days.<img width='1' height='1' src='http://tele.....

Budget 2013: John Lewis-style staff shares incentive unveiled
Measures to kick-start a wave of John Lewis-style staff shares were unveiled, under plans to encourage more employee buyouts of businesses.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/29cc278d/mf.gif' border='.....

A Budget about business is a welcome start
It is a golden rule of Budgets that it is better to concentrate on the price of booze, fags and how much tax people pay because all the other stuff is of no interest to the general public. And it is the general public that ultimately decides the fate.....

Budget 2013: Small businesses freed from jobs tax
Hundreds of thousands of businesses will no longer have to pay employment taxes as part of a drive to convince small companies to boost job creation.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/29ccc0b7/mf.gif.....