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Wednesday 27 March 2013

UK Financial News on 2013-03-27

European Commission probes economic impact of reforms
Moves comes amid growing criticism over efforts to assess reform implications.....

LSE membership resignations hit five-year high
The resignations range from high-frequency trading firms to wealth managers.....

Cyprus banks to reopen on Thursday
Banks in Cyprus are to reopen on Thursday at 10:00 GMT, 10 days after they closed as a controversial bailout was negotiated, the Cypriot central bank says......

Banks told to raise an extra 25bn
Major UK banks must raise a total of 25bn in extra capital by the end of 2013 to guard against potential losses, the Bank of England (BoE) says......

Ministers warned of possible 10% cut
The Treasury writes to government departments, warning most ministers that they will have to cut up to 10% of their budgets for the year 2015/16......

US airlines merger gets approval
The merger of American Airlines and US Airways is approved by a US bankruptcy judge, moving the two firms closer to forming the world's largest carrier......

UK pensioners 'struggling' in Cyprus
Some UK pensioners living in Cyprus are struggling financially following a decision to suspend pension payments to bank accounts there......

Prudential fined 30m over AIA bid
Insurance giant Prudential has been fined 30m by regulators over its 2010 bid to buy AIA, an Asian subsidiary of US insurer AIG......

Figures confirm UK economy shrinking
The UK economy contracted by 0.3% in the fourth quarter of 2012, official figures show, confirming previous estimates......

Lloyd's of London back in profit
Insurance market Lloyd's of London is back in profit, despite paying one of the biggest claims in its history after Superstorm Sandy......

Iberia's chief executive resigns
The chief executive of strike-hit Spanish airline Iberia, Rafael Sanchez-Lozano, has resigned, parent company IAG announces......

Brics nations mull development bank
Leaders of the Brics nations - Brazil, Russia, India, China and South Africa - meeting in Durban discuss the formation of a new development bank......

London Market Report
London Market Report.....

Firm sacks staff over Berlusconi ad
JWT India sacks employees over controversial adverts, including one showing former Italian Prime Minister Silvio Berlusconi with a group of bound women in a car boot......

Government buys airport for 52m
Troubled Cardiff Airport is bought by the Welsh government for 52m, with the first minister saying he expects to see a return on the investment......

Energy policies 'reduce bill rises'
Energy policies will cushion consumers from price rises, but only after contributing to a rise in average household bills, a government report says......

Osborne criticises Cyprus handling
UK Chancellor of the Exchequer George Osborne criticises the handling of the Cyprus crisis by European and Cypriot authorities......

Telegraph extends paywall to UK
The Daily Telegraph is to extend its paywall to UK readers, the latest newspaper to turn to the measure as readerships become increasingly digital......

Pensioners warned on income drawdown
Pensioners are being warned not to take full advantage of new rules on pension drawdown in case they erode their long term finances......

China and Brazil sign currency deal
China and Brazil sign a $30bn (20bn) currency swap deal, which they say will safeguard against any future global financial crisis......

US cuts 'hit consumer sentiment'
US consumer confidence fell sharply this month, affected by federal budget cuts, a closely watched report suggests......

Bids invited to run East Coast rail
The government invites private companies to bid for the East Coast rail franchise and also announces Virgin will run the West Coast Main Line until 2017......

Search and rescue role privatised
Private company the Bristow Group is to take over the UK's helicopter search and rescue operations, including those of the RAF and Royal Navy......

Qantas and Emirates deal approved
Qantas Airways wins a final approval from Australia's competition watchdog for its partnership with Emirates......

Indian state bars S Lanka cricketers
Tamil Nadu state says it will not host Indian Premier League (IPL) matches involving Sri Lankan cricketers, amid anger over Sri Lanka's rights record......

VIDEO: Oxford's Cowley car plant turns 100
It is 100 years this week since the first car rolled off the production line at Cowley in Oxford......

VIDEO: 'Bond' launches new Range Rover
James Bond actor Daniel Craig has launched the new Range Rover Sport at a ceremony in New York......

VIDEO: Banks told to raise an extra 25bn
UK banks must raise a total of 25bn in extra capital to guard against potential losses and sustain lending, the Bank of England (BoE) has said......

VIDEO: Is Beeching's legacy in reverse?
Fifty years after Dr Beeching's controversial report into the reshaping of British railways is published, some of his decisions are now being reversed......

VIDEO: Cyprus bank workers threaten strike
The financial crisis in Cyprus has worsened with workers threatening to strike just 24 hours before the banks are due to re-open......

VIDEO: Reinventing the New York payphone
With mobile phones part of everyday life, the city of New York holds a competition to reinvent the payphone and ensure it will remain relevant in the future......

VIDEO: Energy policies 'reduce bill rises'
Government policies on energy efficiency and climate change are helping to reduce the rise in gas and electricity bills, a report has said......

VIDEO: Brics nations 'to form development bank'
Leaders of the so-called Brics nations - Brazil, Russia, India, China and South Africa are to negotiate over the formation of a development bank......

Global migrants: Which are the most wanted professions?
Our interactive guide to professional global migration - and who wins.....

Should Indonesia be the I in Brics?
Should Indonesia be the I in Brics?.....

Why does Cyprus need capital controls?
Why Cyprus has brought in capital controls.....

Should Britain let go of London?
Is London's success ruining the rest of the UK's chances?.....

Brics nations meet to cement relations
Will Brics delegates be as enthusiastic as the dancers?.....

Fire risk prediction gets technical
Putting out fires using big data analytics.....

NY Car Show: CEO targets double-digit share for new Cherokee
Mar 27 - Mike Manley, CEO of Chrysler's Jeep unit, is aiming for his newly launched Grand Cherokee to hit sales of 800,000 units, but points out that it will be difficult to hit that goal in 2013......

U.S. Day Ahead: BlackBerry bears could get skinned
Mar. 27 - With Blackberry shares being shorted at record levels, investors should pay special attention to what the company says about its sales projections of its latest smartphones when it reports results......

Techquity: Apple's China challenges and stock's value
Mar 27 - Apple products and policies come under scrutiny in China while analysts see short-term weakness but longer term upside for firm and its shares......

FACTBOX: Netflix may be top dog for Q1, but beware!
Mar. 27 - Netflix is the biggest gainer in the S&P 500 for the first quarter, but there are signs the stock may be too hot to handle......

BRICS cut deals, can't agree on development bank
March 27 - BRICS nations failed to resolve their differences over the funding for and the location of a proposed joint development bank at their summit in Durban. But they did launch a business council, aimed at increasing trade and investment ties b.....

Reuters Asks: How well has ECB emerged from Cyprus crisis?
Mar. 27 - Few, if any of the principle players in the Cyprus crisis have emerged with their reputations untarnished. Does the same apply to the ECB?.....

Breakingviews: Potemkin M&A?
March 27 - Rob Cox and Breakingviews columnists discuss the latest twists and turns in the Dell buyout, where even if the counter-bids dont succeed, they have optical benefits for everyone involved......

Europe Day Ahead: Cyprus banks to reopen - but with controls
Mar. 27 - Banks in Cyprus are due to open for the first time since March 15th. Finance minister Michael Sarris says he wants to stop large sums leaving the country - but WON'T restrict dealings at home......

Trading at Noon: Wal-Mart tries to close online sales gap
Mar 27 - Wal-Mart steps up its online game with help from its physical stores......

NY Car Show: China-Japan tension cost 1 year of growth-Ghosn
Mar 27 - Chairman and CEO of Nissan & Renault Carlos Ghosn says political friction between China and Japan has shaved a year off of Nissan's progress in China, but aims to grow market share to 10% by 2016......

Dutch company offers one way ticket to Mars
March 27 - A Dutch company called Mars One is looking for volunteer astronauts to participate in the first manned-mission to Mars. The company wants to send four people to the Red Planet to start a colony in 2023 although there is one catch - the suc.....

Daily Digit: UK banks need 25 bln extra capital
March.27 - Major UK banks must raise 25 billion in extra capital to keep regulators happy after an inquiry into their financial health was published. Hayley Platt reports.....

Cyprus finalizes capital controls to avoid bank run
March 27 - Cyprus is putting the finishing touches to capital control measures to prevent a run on the banks after the country agreed a painful rescue package with international lenders. As protests gather pace Ciara Sutton reports on what is likely .....

U.S. Morning Call: S&P 500 could hit all-time closing high
Mar 27 - The S&P 500 is within striking distance of its all-time closing high, but weak economic data out of Europe and a potentially disappointing home sales tally could block the index from the record......

In the Boardroom: Centrica chairman imports revolution
Mar. 27 - As Britains gas reserves dwindle to 2 days supply, Lucy Marcus interviews Centrica Chairman, Roger Carr, on guiding a board through an energy industry in crisis......

Breakingviews: UK bank capital: credible at last?
Mar. 27 - The BoE has ordered banks to raise 25 bln by the year end. But its required 7% core Tier 1 ratios fall short of some continental banks......

Shanghai Siri scrap latest China trouble for Apple
Mar. 27 - After two weeks of persecution by official Chinese media, Apple is again on the defensive - hitting the courtroom in Shanghai to defend its Siri voice-assistant, as Jon Gordon reports......

China's migrant millions search for a place to call home
Mar. 27 - Migrant workers built China's cities, but cant afford to live in them. Now a heavy-handed drive to replace slums with cheap housing will limit their options even further. Jane Lanhee Lee reports......

Economy 2013: Return to profit for Lloyds of London?
Mar. 27 - After a 516 mln loss in 2011 Lloyds of London is expected to report profits of 2.8 bln in 2012, as events such as the Thai and Australian floods and tsunami in Japan are not repeated......

Reuters Today: Cyprus races to stop bank run
Mar. 27 - Cyprus races to stop a run on the banks with capital controls due to be in place by noon. Meanwhile, UK lenders look set to face tougher capital requirements......

High hopes for Indonesia's new central bank chief
Mar. 27 - Indonesia's economy is in desperate need of stabilization, according to Breakingviews' Andy Mukherjee, so expectations of the new head of the country's central bank will be high......

Market Pulse: BoE gives UK banks a 25 bln thumbs up
Mar. 27 - British banks must raise 25 bln of new capital, says the BoE. Thats a lot, but much less than feared. Investors breathe sigh of relief, UK banks outperform......

How sweet is a $200K+ Bentley?
Mar 26 - It's a bird. It's a plane. It's a Flying Spur. The Bentley Flying Spur is not actually a flying car, but maybe it should be for the $200,500 price tag. So what do you get for almost a quarter of a million dollars? Conway G. Gittens takes an .....

Putin arrives in South Africa for BRICS meeting
March 26 - Russian President Vladimir Putin arrives in South Africa as BRICS leaders gather for annual summit in the South African city of Durban. Rough Cut (no reporter narration)......

Calculating Buffetts Goldman bonanza
Warren Buffets reworked warrants deal stands to make him one of the largest shareholders in Goldman Sachs, providing the stocks current upward trend continues......

Centrica executives enjoy 16.4m payday
Centrica's top five executives took home 16.4m in pay and bonuses in 2012, the company's accounts revealed on Wednesday.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2a118aee/mf.gif' border='0'/><br/>&.....

Cyprus bail-out: live
Cypriots face a suspension of credit card payments for overseas goods and a ban on cashing cheques under draft capital controls designed to avert a run on the banks.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s.....

Fears for lending as Bank of England tells lenders to raise 25bn
Banks could be forced to reduce the size of their investment banking operations, slash staff bonuses and cut dividend payments to investors after the Bank of England ordered lenders to raise 25bn in new capital.<img width='1' height='1' src='http:.....

This Cyprus debacle proves that EMU is dangerous and must end
The punishment regime imposed on Cyprus is a trick against everybody involved in this squalid saga, against the Cypriot people and the German people, against savers and creditors. All are being deceived.<img width='1' height='1' src='http://telegr.....

Cyprus has finally killed myth that EMU is benign
The punishment regime imposed on Cyprus is a trick against everybody involved in this squalid saga, against the Cypriot people and the German people, against savers and creditors. All are being deceived.<img width='1' height='1' src='http://telegr.....

Bank of England plays the confidence game
Central bank suggests measures aimed at reassuring the markets that Britain's lenders are safe.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2a10dc57/mf.gif' border='0'/><br/><br/><a href="htt.....

Train firms drop 40m lawsuit over Great Western costs
Four of Britain's major train operators have dropped a lawsuit against the Government to recover up to 40m of costs lost when the bidding competition for the Great Western rail franchise was scrapped earlier this year.<img width='1' height='1' src.....

Traders stockpile Tesco on hopes of higher shareholder returns
Deutsche analysts suggested Tesco could return 1.6bn a year from 2016.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2a102b50/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/.....

FSA accused of 'lack of perspective' by fining the Pru 30m
The City watchdog has been accused of showing a "lack of perspective" and being "uber sensitive" after it fined Prudential a total of 30m for failing to keep regulators informed of its botched $35.5bn (23.4bn) bid for AIA in 2010.<img width='1' he.....

Young people more likely to switch bank as trust levels fall
Younger people do not feel loyalty towards "untrustworthy" banks and are more likely to switch, according to research.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2a0f6035/mf.gif' border='0'/><br/><.....

Make the most of cash Isas
With the tax deadline fast approaching, we explain how to track down the best deals.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2a0f6281/mf.gif' border='0'/>.....

Record number of short positions in BlackBerry shares
BlackBerry's hopes that its new handset will help the company to regain the lead in smartphones it once enjoyed have been dealt a blow with news that a record number of short positions have been taken in its shares.<img width='1' height='1' src='h.....

BlackBerry shares targeted on Z10 scepticism
BlackBerry faces a record number of bets from investors that its new phone will fail to restore the fortunes of a company that once dominated the market.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2a0ef861/mf.....

Cypriots face draconian cash controls to stop run on banks
Cyprus was looking at imposing draconian capital controls on Wednesday in a bid to stem panic when the country's banks reopen on Thursday.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2a0f51f4/mf.gif' border='0.....

Bubbles and bankruptcy: a British history
We review the Bubbles and Bankruptcy exhibition at the British Museum, which charts four hundred years of British bank collapses and the frenzied asset bubbles that all too often beguiled investors.<img width='1' height='1' src='http://telegraph.f.....

Pound fears as current account deficit jumps to near 25 year high
Britain's current account deficit jumped to its highest level in almost a quarter of a century last year, leading analysts to suggest that the pound may need to fall further in order to get the British economy back to a sustainable path.<img width.....

Adnams calls for review of 'unfair' tax breaks for micro brewers
Suffolk brewer Adnams warns the tax break is distorting the beer market.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2a0d0472/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/.....

Tui summer bookings up 9pc as Brits look to escape chill
Bookings for summer holidays are up 9pc as Britons look to escape the extended cold spell, according to Tui Travel.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2a0cfe77/mf.gif' border='0'/><br/><br.....

Can we please stop tinkering with the banks
Five years on from the financial crisis, British regulators still have an unquenchable desire to tinker with the country's largest banks, to the increasing detriment of us all.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726.....

Merlin Entertainments states preference for London listing
Merlin Entertainments, the attractions giant behind Madame Tussauds and Legoland, stressed London remains its preferred location for a stock market flotation although it is still "evaluating all options".<img width='1' height='1' src='http://teleg.....

Top ten FSA fines
The Financial Services Authority has fined Prudential 30m for failing to follow correct protocol in notifying the city regulator about its $35.5bn (23.4bn) bid for Asian rival AIA in 2010. Here is where that fine sits in the top ten largest handed ou.....

Berlusconi's media empire slips to first ever annual loss
Silvio Berlusconi's media empire has slipped to its first ever annual loss, as a weak Italian advertising market forced the company to scrap its dividend.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2a0be069/m.....

UK economy contracts by 0.3pc - reaction
Britain's economy contracted by 0.3pc in the fourth quarter of 2012, official data confirmed on Wednesday, as industrial production posted its biggest quarterly fall in almost four years. Here experts give their view.<img width='1' height='1' src=.....

UK GDP contraction confirmed at 0.3pc
Britain's economy contracted by 0.3pc in the fourth quarter of 2012, official data confirmed on Wednesday, as industrial production posted its biggest quarterly decline in almost four years.<img width='1' height='1' src='http://telegraph.feedsport.....

FTSE 100 tepid as TUI Travel warms up
Tour operator enjoyed a moment in the sun on upbeat profit outlook.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2a0b40a7/mf.gif' border='0'/><br/><br/><a href="http://da.feedsportal.com/r/161.....