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Tuesday 4 June 2013

UK Financial News on 2013-06-04

Sacha Sadan leads L&Gs governance charge
One of the UK's most powerful investors talks to FN about boardroom pay, responsible capitalism and why long term is the best investment period.....

Saunders beefs up Investecs regulatory push
The former chief executive of the IMA takes on a non-executive role at the fund manager.....

BIS unveils weekend rescue plan for mega bank failures
The recapitalisation plans are aimed at influencing forthcoming rules on living wills.....

Debt market revenues dominate like it's 1998
The European DCM business now makes up a bigger share of investment banking revenues than at any time since the year France hosted and won the World Cup.....

Bonds overpriced say strategy chiefs as equities beckon
Investment heads prepare for a ‘catastrophic bear market' for bonds but a great rotation is years away.....

Aquis Exchange to charge up to 10,000 a month for subscription
Fledgling European equities trading venue will offer a two-tier tariff system in its first six months.....

Derivatives players prepare for Libor shake-up
A raft of agreements this week aim to head off disputes that might arise from imminent Libor changes.....

RenCap's Bunce defects to Sberbank
Global head of electronic trading switches firm as Sberbank bids to build an international business.....

Otkritie names new CEO
Russian investment bank best known for direct market access to the Moscow Stock Exchange picks chief executive.....

Trade bodies join forces to fight the European FTT
Exchanges and trade bodies unite against controversial levy in an unprecedented move.....

Chesapeake just the tonic for Platinum
US billionaire-backed firm enters the fray for Anglo-American packaging company.....

Isda set to offer new CDS insurance policy
The $6 trillion credit default swaps market is to upgrade its cover for banks for the first time in a decade.....

EU imposes China solar panel duties
The European Commission announces it is imposing temporary anti-dumping levies on Chinese solar panel imports......

Families 'to lose 1,800 a year'
The average middle-income family in Britain is likely to be nearly 1,800 a year worse-off by 2015, according to the Institute of Fiscal Studies (IFS)......

RBS could be split into two banks
The draft report of the Parliamentary Commission on Banking Standards recommends breaking up RBS into a good bank and bad bank, the BBC learns......

Coca-Cola plant opens in Burma
Coca-Cola resumes business in Burma after six decades, following a US decision to suspend investment sanctions......

Government sees off carbon rebellion
The government sees off a rebellion by Lib Dem and Conservative MPs over calls for a carbon emissions target for the energy industry......

HSBC sued over New York foreclosures
UK bank HSBC is being sued by the state of New York which alleges it has ignored a US law designed to protect homeowners from losing their houses......

IMF urges France to reform economy
The gap between France and its European neighbours will widen unless it introduces fresh economic reforms, the International Monetary Fund (IMF) has warned......

UK construction returns to growth
The UK construction sector returns to growth after a rise in house building activity, a closely-watched survey indicates......

Blacklist workers seek compensation
The GMB is lodging claims in the High Court for compensation on behalf of 70 construction workers whose names were discovered on a blacklist......

Investment schemes face new rules
The promotion of some types of risky investment schemes, which put money into products such as wine or timber, are to be more tightly controlled......

Three network hit by net glitches
Connectivity problems have left many customers on Three's mobile network unable to access the internet......

More working women 'could lift GDP'
Increasing the number of women in the workforce would dramatically boost the UK's economic growth, according to a government-backed report......

New Look back in profit
Fashion retailer New Look returns to profit, boosted by online sales.....

Charity Commission criticised by MPs
MPs have questioned whether the Charity Commission is fit for purpose, after it failed to spot a charity apparently set up for tax avoidance......

Heathrow terminal to open in a year
Heathrow's new 2.5bn terminal will open in exactly one year's time, bosses at the airport announce......

Billabong takeover talks collapse
Shares in Australian surfwear maker Billabong plunge after the firm says takeover talks with two potential bidders have collapsed......

Spain's jobless total falls in May
The number of registered job seekers in Spain fell in May as more firms hired people on a temporary basis ahead of the peak summer season......

Ford to recall 465,000 vehicles
US carmaker Ford says it will recall 465,000 cars globally - including its 2013 Fusion model - to fix a possible fuel leak......

Napster man's big fat wedding bill
Napster's co-founder Sean Parker agrees to pay $2.5m (1.6m) for building a huge wedding venue in an ecologically sensitive area of California......

JD Wetherspoon to open motorway pub
JD Wetherspoon says it will open its first motorway pub after being given the go-ahead at services on the M40......

Bank lending continues to shrink
UK bank lending continues to fall, Bank of England figures show, despite government attempts to reverse the trend......

Balls: I'd restrict winter fuel cash
Ed Balls says a future Labour government would have "iron discipline" on spending - with winter fuel payments, free schools and police commissioners all facing curbs......

US sanctions target Iranian currency
The US unveils fresh sanctions against Iran, targeting the country's currency, as it increases pressure on Tehran to abandon its nuclear programme......

Turkish stock market hit by protests
Turkey's main share index closes 10.5% down following the escalation of anti-government protests over the weekend......

UK manufacturing sees growth pick up
The UK manufacturing sector grew at its fastest pace in more than a year last month, according to a survey, with production and new orders picking up......

Ashraful sorry for 'wrong-doings'
Mohammad Ashraful sorry for "wrong-doings" as investigation into allegations of corruption in Bangladesh takes place......

Fifa on gradual route to recovery
Football's governing body will clean up its tarnished image on its own accord, but what was achieved at the annual congress in Mauritius?.....

VIDEO: Ignoring women 'holds back UK economy'
Ignoring women's potential in the workplace is holding back the UK economy, according to a new campaign......

VIDEO: 'I make my staff sing'
A call centre in Swansea has developed a unique approach to keeping its staff motivated with activities such as sing-alongs......

AUDIO: 'No objections' to M40 pub
JD Wetherspoons is due to open its very first motorway pub, serving alcohol from 8am until 1am, just off the M40 in Beaconsfield, Buckinghamshire......

VIDEO: Is this small Spanish town 'utopia'?
A small communist style town in Spain claims to have no unemployment and no repossessions despite the economic crisis......

AUDIO: Girls 'lack ambition' for good jobs
Ruby McGregor-Smith and Gladys Lawson discuss a new report from the Women's Business Council that says the UK economy needs women's contribution, and action is required to remove the obstacles that currently restrict women from realising their full p.....

AUDIO: Today business round-up
The Today programme's business news with Simon Jack......

VIDEO: 'Business angels' fund French firms
Small businesses are vital to generate much-needed jobs in France, but as in other countries, many start up firms find it difficult to get financing......

VIDEO: Computex: PC makers eye comeback
Asia's biggest computer show begins in Taipei, with PC makers looking to unveil new products to try and offset declining sales......

Vodafone faces tax dilemma
Could UK miss out on tax if massive deal goes through?.....

Businesses tempt customers to be investors
The businesses tempting customers to be their investors.....

China labour costs spook investors
'Scary' rise in Chinese labour costs spooks foreign firms.....

Economic challenges facing Sharif
Getting the lights on - and other problems for Sharif.....

In pictures: Computex 2013 press day
Smartwatches, hybrid laptops and mind-reading headsets unveiled.....

Why is India obsessed with monsoon rains?
Why monsoon rains determine the fortunes of India's economy.....

U.S. Day Ahead: ADP to confirm tepid job market
June 4 - Expect Friday's jobs report to be mediocre at best based on the latest ADP private payrolls report......

Rates rising for home buyers but not car buyers
June 4 - Bankrate.coms senior financial analyst, Greg McBride, advises consumers and savers on what to do in a rising interest rate environment......

Techquity: Microsoft closing in on Apple, Amazon ad power
Jun 4 - Microsoft narrowing the market share gap with Apple in mobile phones according to a new forecast while Amazon becomes more of a player in the advertising market......

China trade war fears remain despite EU solar ruling
June 4 - The European Union is going to press ahead with imposing duties on billions of euros of solar panels imported from China, despite resistance from Germany and other member states who fear it could spark a trade war. As Joanna Partridge report.....

Daily Digit: Amazon pays $200 mln
June 4 - Amazon writes its biggest streaming video check ever to Viacom as it adds Dora, SpongeBob SquarePants and Diego to digital content available for Prime Instant Video customers. Conway G. Gittens reports......

Wealth Strategies: Bond funds could plummet 10% - FINRA CEO
June 4 - Bond investors beware! The head of the Financial Industry Regulatory Authority, Richard Ketchum, says investors could be hit by spiking bond yields if they don't pay attention......

Breakingviews: Non-bank SIFIs at last
June 4 - Reynolds Holding and Breakingviews columnists discuss the designation of AIG, GE Capital and Prudential Financial as systemically risky and whether the move comes too late......

Trading at Noon: Blue skies for cloud computing firms
June 4 - Salesforce.com makes an offer for ExactTarget and IBM grabs SoftLayer, as deals heat up in the cloud computing space.....

Protests, deaths & now strikes in Turkey
June 4 - After more protests overnight and two deaths in Turkey, a union federation has begun a two-day strike involving quarter of a million workers. After Monday's stock market fall Joel Flynn asks how concerned businesses should be about the ongoi.....

Saft Says: Fed is talking but not walking taper
columnist James Saft says QE is here to stay and good for the wealthy......

Nigerian Minister of Mines and Steel Development
June 4 - Nigerias Minister of Mines and Steel Development explains how the countrys wooing mining investors.....

Europe Day Ahead: King's last stand at the Bank of England
June 4 - We will see if signs of economic life are flickering back into the euro zone from services PMIs and revised Q1 GDP, while the UK aims for a PMI hat trick. And Mervyn King chairs his last MPC meeting......

Coca-Cola returns to Myanmar
June 4 - Coca-Cola Co. opens a factory on the outskirts of Myanmar's commercial capital to begin production in the country for the first time in more than 60 years. Edward Baran reports......

Wealth Strategies: RBC looking to grow asset management biz
Jun 4 - George Lewis, head of wealth management at Canada's RBC, says he's looking to expand his firm's asset management capabilities in the U.S. and UK, either by acquisition or through expanding workforce......

U.S. Morning Call: S&P 500 welcomes back AIG and GM
Jun 4 - American International Group and General Motors will rejoin the S&P 500 index this week, marking a key milestone in the recovery of two companies......

Daily Digit: Spain jobless numbers fall
June 4 - The number of registered jobless people in Spain has dropped in May, seized on by the government as an encouraging sign that a prolonged recession could be nearing its end. Sonia Legg reports......

Market Pulse: Green shoots? Sterling still looks weedy
June 4 - More data today suggests green shoots of UK recovery are sprouting. But don't expect weedy sterling to blossom. Dollar/yen back above 100, plus Turkish lira and S African rand - spot the difference......

U.S.-China summit a shot at a fresh, more casual start
June 4 - The summit between U.S. President Barack Obama and Chinese leader Xi Jinping will have a livelier, more laid-back feel than past talks, but is no less crucial to China's image, says one China watcher......

Breakingviews: Stop dithering over Co-op
June 4 - The need to sustain competition in UK banking should guarantee its future. But that doesn't mean it could withstand deposit flight, says Breakingviews......

China's migrants bring new habit home: online shopping
June 4 - Chinas countryside represents the next frontier for the nation's already thriving e-commerce industry, with more rural residents hooking up to the Internet to indulge in some retail therapy......

Reuters Today: Abenomics steps up a gear
June 4 - Japan's government plans to urge the country's public pension funds to increase their investment in stocks and overseas assets to stoke inflation......

IMF warns France over reforms, spending
June 4 - The IMF says France understands the need for structural and labor reforms, but it must step them up to go back to growth and boost competitiveness. Rough Cut (no reporter narration)......

Wall Street bounces back; Zynga cuts staff
June 3 - Summary of business headlines: Market recovers some of Friday's sell-off as data suggest Fed has economic cover to keep buying; Zynga to slash jobs in bid to save up to $80 million per year; Merck drug shows early promise, stock gains. Conwa.....

Decoding the data
June 3 - A slew of economic intel has the markets making waves in every direction- and has economists deciphering what matters most and why. Bobbi Rebell reports......

U.S. Day Ahead: Get ready for Tesla to do the electric slide
Breakingviews' Antony Currie......

Property prices turn one in five middle aged workers into paper millionaires
One in five middle aged people in Britain is a millionaire - on paper at least, a study of official figures shows.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2cd84a5e/mf.gif' border='0'/><div class='mf-.....

Apple 'wanted its ebook prices to be lowest'
Apple claims it did not want to force its rivals to raise their prices for ebooks - it just wanted to make sure its own prices were the lowest and it had "the greatest bookstore on the planet".<img width='1' height='1' src='http://telegraph.feedsp.....

Ex-Barclays chief Jenkins driving US deal
Roger Jenkins, Barclays' former head of investment banking in the Middle East, is buying up a string of luxury car dealerships on the West Coast of America with the aim of floating the company in New York.<img width='1' height='1' src='http://tele.....

Time for 'radical' measures is gone
None of the radical plans for RBS are necessarily wrong, but time for implementation is long past.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2cd7ee09/mf.gif' border='0'/><div class='mf-viral'><ta.....

Time for RBS 'radical' measures is gone
None of the radical plans for RBS are necessarily wrong, but the time for their implementation is long past.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2cd7eacd/mf.gif' border='0'/><div class='mf-viral'.....

The time for inflicting 'radical' measures on RBS is long gone
If George Osborne had a pound for every time someone suggested to him a way to sort out Royal Bank of Scotland he could start his own bank.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2cd7a014/mf.gif' border='.....

Government braced for September deadline on resolving future of RBS
The Government should consider a range of "radical options" for Royal Bank of Scotland, including breaking up the lender, a group of MPs and peers are likely to recommend.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56.....

Heathrow to open new 2.5bn terminal next year
On December 16 1955, a young Queen Elizabeth opened the first terminal building at London Airport, the hub now known as Heathrow.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2cd6ee75/mf.gif' border='0'/><.....

Barclays executive accused of lying in 140m case
The Barclays executive at the centre of a 164m (140m) damages claim against the bank was accused in court on Tuesday of telling a "blatant lie" to cover up how the lender had allegedly mistreated a client.<img width='1' height='1' src='http://tele.....

Cobham slides on stake sale
A 3.6pc stake sale hit shares in the FTSE 250 defence equipment group.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2cd62537/mf.gif' border='0'/><div class='mf-viral'><table border='0'><tr>.....

There's a worse crisis on the way unless we get serious about tackling debt
For all of the talk of austerity, Britain is still drowning in debt, private as well as public.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2cd65451/mf.gif' border='0'/><div class='mf-viral'><table.....

Business news and markets: as it happened, June 4, 2013
The US trade deficit widened in April as a rise in imports offset a rebound in exports, suggesting that trade remained a drag on economic growth as the second quarter started.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/.....

Sir Mervyn King signs off Bank accounts for last time
Sir Mervyn King, the Bank of England's outgoing Governor, set out a bright picture for the economy as he signed off the central bank's accounts for the last time.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2c.....

Business news and markets: live
The US trade deficit widened in April as a rise in imports offset a rebound in exports, suggesting that trade remained a drag on economic growth as the second quarter started.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/.....

The world's most competitive countries by 2025
London will be Europe's most competitive city in 2025, according to research by Citi and the Economist Intelligence Unit. Here are the top ten countries to do business in the future.<img width='1' height='1' src='http://telegraph.feedsportal.com/c.....

Spain's parliament calls time on cut-price gin
Spain's politicians have agreed to take subsidised cocktails off the menu in parliament's cafeterias after they stirred up outrage amongst the suffering Spanish public.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/56830.....

MPs threaten Dame Clara Furse appointment to FPC
Dame Clara Furse has been warned that her nomination to the Bank of England's stability arm may not be backed by MPs after her efforts to convince them of her suitability was described as "amazingly unimpressive."<img width='1' height='1' src='htt.....

Brussels fires shot in China solar trade war
Brussels has fired the opening shot in a trade war with China by imposing stinging import duties on Chinese solar panels, levies that will lead to major increases in the cost of renewable energy for consumers.<img width='1' height='1' src='http://.....

Amazon's success in Britain comes at a price
Aurelie Filippetti's attack on Amazon, branding it a "destroyer of bookshops", will be met with mixed feelings in the UK, where the book-selling landscape is very different from France's.<img width='1' height='1' src='http://telegraph.feedsportal......

AstraZeneca halts arthritis treatment after poor results
The troubled pharmaceutical giant has stopped development of a treatment for arthritis after disappointing results in a late-stage trial, resulting in a $140m (92m) writedown.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/.....

The best value music festivals of 2013
With more than 20 music festivals to choose from this summer, new research shows which ones provide the best value for money.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2cd4d092/mf.gif' border='0'/><div.....

Wolseley shares tumble amid faltering US sales
Growing momentum in the US housing market failed to give Britain's biggest plumbing supplier as big a rise in sales as expected, wiping more than 400m off the company's value.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/.....

Greek tax system still not 'fit for purpose', says EU
Greece is still a long way from having a tax system that is "fit for purpose", the EU's commissioner for tax said on Tuesday, as International Monetary chief Christine Lagarde called on it to do more to tackle the rampant evasion that has plagued the.....

Amazon is 'destroyer of bookshops', says French culture minister
France's culture minister has branded Amazon a "destroyer of bookshops", accusing the online retailer of undercutting traditional sellers to create a "quasi-monopoly".<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300.....

'Risky' investments are taken off the menu
Investments in wine and other esoteric assets can no longer be sold to private investors, the regulator has ruled.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2cd4d096/mf.gif' border='0'/><div class='mf-.....