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Wednesday 26 June 2013

UK Financial News on 2013-06-26

Automatic public pay rises to stop
Public sector workers face losing automatic pay increases and expatriate pensioners in hot countries their winter fuel allowance as part of 11.5bn cuts unveiled by the chancellor......

HS2 may cost 10bn more than planned
The proposed budget for the HS2 railway has increased by nearly 10bn to more than 40bn, the transport minister says as the plan wins a Commons vote......

Italy seeks to lift youth employment
Italy's government says it will spend 1.5bn euros to boost youth employment, including tax breaks for companies that hire young people......

BA to relax mobile phone rules
British Airways will become the first European airline to relax its rules regarding electronic devices on flights, starting next month......

'World's fastest' 4G data launched
South Korea's biggest mobile operator begins offering what it says are the fastest ever 4G data speeds made available to consumers......

Bank warning over rate rise risk
The Bank of England says "significant" numbers of people could face financial difficulties when interest rates start to rise again......

US growth rate revised down to 1.8%
The US economy grew at an annualised pace of 1.8% in the first quarter of the year, slower than the previous estimate of 2.4%......

Rent rises 'driven by London market'
Rental prices have risen by 8.4% in England since May 2005, driven by an 11% increase in London, new official figures show......

Rio Tinto in Mozambique coal freeze
The mining giant Rio Tinto has suspended its coal exports from Mozambique, because of security concerns following threats from the former guerrilla movement, Renamo.....

Direct Line set to cut 2,000 UK jobs
Direct Line Insurance says 2,000 UK jobs at the firm are at risk as it steps up plans to cut costs......

'Historic' equal pay case victory
The local authority workers' union, Unison, has won an equal pay case for female workers on Dumfries and Galloway Council at the Supreme Court......

Controversial trader Marc Rich dies
Marc Rich, the trader controversially pardoned by former President Bill Clinton, dies in Switzerland at the age of 78......

UBS fined in France amid tax probe
The French unit of UBS is fined 10m euros (8.5m; $13m) by French banking regulators for failing to tighten money-laundering controls......

EU to cut subsidies to big farms
European Union negotiators agree a package of reforms to agricultural subsidies which will see big farms lose up to 30% of their payout......

Pope sets up Vatican bank inquiry
Pope Francis sets up a commission of inquiry to review the activities of the Vatican bank, following recent scandals......

News International changes name
News International, the media company behind newspapers including the Times and the Sun, changes its name to News UK......

Temperature test for winter payments
Expats who live in seven warm European countries will lose their winter fuel payments under a "temperature test" announced by the chancellor......

Summit called on payday lending
Lenders, regulators and government ministers are being summoned to a summit about the UK's payday loans industry next week......

Jane Austen may appear on 10 note
Author Jane Austen may replace Charles Darwin on the 10 note, outgoing governor of the Bank of England Sir Mervyn King has said......

South Sudan set for new oil pipeline
South Sudan moves closer to its target of a pipeline to the south to export its oil, reducing the need to send it through Sudan......

Rate rises a long way off, King says
Bank of England governor Sir Mervyn King says that world economies are "nowhere near" a return to "normal" interest rates......

US home prices see big annual rise
As US home prices see their biggest rise since 2006, some analysts think this is a further sign of economic recovery......

UK electric car breaks speed record
Drayson Racing sets a new world land speed record for a lightweight electric car at a racetrack in Yorkshire, travelling over 200mph......

Two-year European ban for Fenerbahce
Turkish sides Fenerbahce and Besiktas both receive European bans from Uefa following a domestic match-fixing scandal......

Jackson frets over possible SFA fine
Administrator Bryan Jackson believes it could be a "disaster" if Hearts are fined by the Scottish Football Association......

VIDEO: UK economy in graphs and statistics
The BBC looked at the statistics about the UK economy as the Chancellor claimed that it was now out of "intensive care" ahead of his Spending Review speech to the Commons on Wednesday lunchtime,.....

VIDEO: Controversial trader Marc Rich dies
Marc Rich, the trader controversially pardoned by former President Bill Clinton, has died in Switzerland......

VIDEO: Microsoft unveils new Windows 8
Microsoft is offering a free upgrade and will unveil version 8.1 of Windows at its annual developers conference in San Francisco......

VIDEO: Balls: Living standards falling
Shadow chancellor Ed Balls has responded to George Osborne's Spending Review announcement and said that "living standards are falling; year, on year, on year"......

VIDEO: Osborne: From rescue to recovery
George Osborne opened his Spending Review explaining the coalition had brought the deficit down by a third, helped a record number of people into work and it "taken our economy back from the brink of bankruptcy"......

VIDEO: BBC editors on the Spending Review
The BBC's political, economics and business editors gave their reaction to the details of the budget changes announced in the chancellor's Spending Review......

VIDEO: Taiwan's novel incentive to pay tax
Taiwan has come up with a system that has boosted tax revenues by making both businesses and customers pay attention to the tax system - a lottery-style draw......

AUDIO: Second homes 'create great loss'
There are more than 250,000 second homes in Britain, according to the latest statistics. The BBC's Mike Thomson reports......

Obama in Africa: Too little too late?
What does the US presidential visit mean for the continent?.....

Denver's hot housing market
The battle to buy in Denver's hot, hot housing market.....

Mapping children's chances
The world's most family-friendly countries.....

What is middle class in Ivory Coast?
How to survive on $2 and $20 a day.....

Jobs crisis: Europe's great migration
Migration of Europe's young jobless fuels brain-drain fears.....

The long wait for rural broadband
Rory Cellan-Jones on the long wait for rural broadband.....

Haiti tries to boost its tourism
Haiti's efforts to boost its tourism industry.....

U.S. Day Ahead: Fedsters explain why markets are wrong
June 26 - Top Fed officials will speak on Thursday, and are expected to discuss Fed policy. Also, look for KB Home and Nike to report......

Sprint will benefit from Softbank partnerships- Smithen
June 26 - Softbank's Sprint buyout will allow it to access partnerships that can differentiate Sprint-merging content, mobile commerce and telecom service,says Macquarie's Kevin Smithen. Bobbi Rebell reports......

Last chance saloon for EU banking union
June 25 - The European Union will make a fresh attempt to share out the costs of future bank failures, starting a regime to spare taxpayers further bailouts. But as Ivor Bennett reports some believe a deal won't be reached and could create turmoil as.....

Sniffing out schizophrenia using nose cell samples
June 26 - The human nose may hold the key to diagnosing schizophrenia, according to a team of US-Israeli researchers. They say that biological markers for the disease exist in nerve cells from the upper nasal cavity near the brain, a discovery that c.....

More UK cuts but pill is sweetened
June 25 - British finance minister George Osborne unveiled spending cuts on Wednesday to try to tame the country's big public deficit, but promised to reinvest some of the money saved to counter criticism of excessive austerity. Joanna Partridge repo.....

MuniLand Roundtable: The future of Detroit
Jun 26 - Rhonda Schaffler leads a panel of experts in a discussion on Detroit's chances for bankruptcy and what would mean for the municipal bond market......

Breakingviews: White shoes walking
June 26 - Jeffrey Goldfarb talks to Reynolds Holding about how cuts in staff and pay at law firm Weil Gotshal & Manges reflect a structural shift in the legal business......

Trading at Noon: Weak GDP, market says "ok"
June 26 - Day 2 of markets rebounding. U.S. GDP comes in weaker but stocks & bond rise. Plus, Telecoms up north, head south......

Daily Digit: Mortgage rates hit 4.46 percent
June 26 - The average rate for a 30-year fixed rate home loan jumped nearly a full percentage point to an average of 4.46 last week, the highest since August 2011, according to a survey by the Mortgage Bankers Association. Conway G. Gittens reports......

Carnegie Mellon robots aim to please
June 26 - Researchers at Carnegie Mellon University are designing modern day butlers - service robots that will one day help people with tasks like fetching coffee and cleaning up the kitchen. Ben Gruber has more......

General Mills needs Wheaties
Jun 26 - General Mills' fourth-quarter profit rose 13 percent but its outlook disappoints Wall Street. Fred Katayama reports......

Europe Day Ahead: Can the Council save the children?
June 26 - Leaders gather in Brussels for the European Council's monthly meet. Top of the agenda - Europe's youth unemployment crisis and banking bail-ins......

U.S. Morning Call: Microsoft to open new 'Windows'
June 26 - Bowing to consumer demand, Microsoft is set to unveil a free upgrade of Windows 8 that promises to fix issues with the operating system......

Daily Digit: Gold near 3 year low
June 26 - Gold slumps to a near three-year low as healthy U.S. data supported the Federal Reserve's plan to cut back its stimulus. As Hayley Platt reports reassurance that Europe was not about to follow suit also helped......

Viagra maker Pfizer faces stiff competition, UK patent ends
June 26 - Viagras UK patent expires this month, opening the floodgates for generic imitations by rival drug makers that could be sold for as little as 1......

Market Pulse: Gold, you're all too destructible
June 26 - Gold slumps again and heads for its worst month since October 2008. CMC Markets technical analyst Michael Hewson tells us whether there's any sign of a bottom......

Reuters Breakingviews: Italy cant shake old derivative sins
June 26 - News of a possible 8 billion loss on pre-euro swaps in embarrassing for Italy and wont help if Rome has to go to the ECB, says Breakingviews......

Foreign shareholders lay siege to Japan's boardrooms
June 26 - A rising number of international investors have moved to cash in on the revival of Japan Inc. And they're bringing calls for change to a traditionally conservative corporate culture with them......

In the Boardroom: Winning back trust
June 26 - Boards across the financial services sector are fighting to regain customers trust after the crisis. Lucy Marcus interviews Craig Dunn, CEO of AMP Australia......

A tough new line from the People's Bank of China
June 26 - China's central bank will continue to turn the screws on the nation's lenders in order to send a strong signal that policies have changed under Beijing's new leadership, says researcher Gary Liu......

Reuters Today: Kill or cure? Fresh austerity medicine for UK
June 26 - Yet more austerity for the UK as new spending cuts loom, a calmer mood in China as the central bank steps in, and a hotel in no-man's land for the fugitive U.S. spy......

Italy derivatives scandal? Think Forrest Gump - Intesa CEO
June 26 - In a 2 trln box of chocolates, 8 bln is a pretty small one. Intesa Sanpaolo boss Enrico Cucchiani invokes Forrest Gump on a potential Italian derivatives scandal......

Investors find courage after upbeat data
June 25 - Summary: Investors were in a buying mood after data on housing, consumer confidence and durable goods showed an uptick in economic activity; Obama takes new aim at climate change. Conway G. Gittens reports......

Home run for housing, rates could change game
June 25 - The housing market continues to build momentum with home sales and prices hitting multi-year highs, but with rising rates the pace could cool. Bobbi Rebell reports......

U.S. Day Ahead: Mortgage data to reveal bond rout damage
June 25 - Mortgage data on applications and rates will show how the bond market rout has played out with homeowners and what damage it might have caused to the recovering housing market......

Millions told they will have to work longer or cut spending to pay the mortgage
Millions of homeowners have been warned they will have to work longer hours, or cut spending, to be able to pay the mortgage when interest rates start to rise.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2dd71.....

Repsol rejects Argentina's compensation offer for YPF seizure
Spanish oil major Repsol's board of directors has unanimously rejected a $5b non-cash compensation offer from Argentina for its expropriation of energy firm YPF, saying the offer does not reflect Repsol's loss.<img width='1' height='1' src='http:/.....

Announcing projects is one thing, seeing shovels in the ground is quite another
After the Spending Review, the issue now is execution and where that money is spent.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2dd62fd8/mf.gif' border='0'/><div class='mf-viral'><table border='0'.....

Osborne has shifted the political ground
Telegraph View: Austerity will be hard for people facing redundancy, but for every one state job lost in the past year, five have been created in the private sector<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/.....

Government fast tracks road and rail projects with 100bn spend
Guarantees for nuclear power plants, a commitment to the 32bn High Speed 2 rail line and a clutch of transport projects will form part of a 100bn plan to revamp Britain's creaking infrastructure.<img width='1' height='1' src='http://telegraph.feed.....

Spending Review: More cuts to come as measures have little impact on borrowing
Britain faces another 25bn of tax rises and spending cuts under the next government after the Treasury failed to find any extra savings in its 2015 spending round, economists warned.<img width='1' height='1' src='http://telegraph.feedsportal.com/c.....

Bumi strikes deal with former director to recover $173m
Bumi, the scandal-ridden coal miner, has struck an agreement with former director Rosan Roeslani for the recovery of most of the $201m (131m) missing from the Indonesian subsidiary he used to run.<img width='1' height='1' src='http://telegraph.fee.....

Afren gushes on Nigeria hopes
Investors were piling into shares in oil and gas explorers on Wednesday.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2dd61191/mf.gif' border='0'/><div class='mf-viral'><table border='0'><tr&g.....

BNP Paribas' UK traders say bank is 'holding gun to our heads' over new British contracts
BNP Paribas traders based in London say the French bank is demanding they sign a British contract that removes some of their perks.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2dd61192/mf.gif' border='0'/>&.....

Spending Review 2013: Labour backs Osborne's welfare cap
Ed Balls has signed up to George Osborne's plan to cap welfare spending and raised the prospect that a future Labour government would cut the state pension in future.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/.....

Spending Review 2013: School funding to be reformed
Neglected rural schools to get more funding but nurseries and further education colleges must be "more efficient", George Osborne says.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2dd60bc8/mf.gif' border='0'/&.....

Spending Review: NHS raided to pay for elderly care
The elderly will benefit from "joined up" health and care services to "end the scandal of older people trapped in hospitals", George Osborne said.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2dd70d03/mf.gif' b.....

Spending Review 2013: NHS raided to pay for elderly care
The elderly will benefit from "joined up" health and care services to "end the scandal of older people trapped in hospitals", George Osborne said.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2dd60bc9/mf.gif' b.....

HMV's Oxford Street flagship to become a Sports Direct
HMV'S flagship music store on Oxford Street in London is to become a Sports Direct after the sportswear retailer agreed a deal to move to the site.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2dd54ffb/mf.gif' .....

Spending Review: 2bn to boost regional growth
England's regions are to receive 2bn a year to support local growth as part of a drive to devolve spending powers from central government.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2dd4cf5c/mf.gif' border='0.....

Spending Review: Business welcomes pay crackdown
Business groups have described a crackdown on "antiquated" public sector pay rises as a "tough but necessary" move which would help companies outside the South East "pick up the slack" by making the private sector more competitive.<img width='1' h.....

Spending Review 2013: as it happened
Chancellor commits to 50bn of capital investment for roads, railways, bridges, broadband, science and schools to drive growth in the economy but business questions if he can deliver.<img width='1' height='1' src='http://telegraph.feedsportal.com/c.....

Risk of 1937 relapse as Fed gives up fight against deflation
The US Federal Reserve has jumped the gun. It has mishandled its exit strategy from quantitative easing, triggering a global bond rout that it did not anticipate, and is struggling to control.<img width='1' height='1' src='http://telegraph.feedspo.....

BT suffers surge in complaints about its TV service
Telecom giant BT's preparations for its high profile push into sports TV were dealt a blow yesterday as regulators revealed a surge in complaints about its existing service.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/.....

Marc Rich, father of commodity trading and former fugitive, dies aged 78
Colourful commodity trader who fled the US and founded Glencore Xstrata has died in Switzerland aged 78.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2dceefd4/mf.gif' border='0'/><div class='mf-viral'>.....

Marc Rich: Death of 'King of Oil', billionaire once on Most Wanted list
Marc Rich, the so-called "King of Oil", was always going to have an obituary politely termed as colourful.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2dd4c375/mf.gif' border='0'/><div class='mf-viral'&g.....

Spending Review 2013: live
Chancellor commits to 50bn of capital investment for roads, railways, bridges, broadband, science and schools to drive growth in the economy but business questions if he can deliver.<img width='1' height='1' src='http://telegraph.feedsportal.com/c.....

Financial advice? We'll go it alone, say over-55s
Eighty five per cent of over-55s said they preferred the "do it yourself" approach when it came to financial decisions.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2dd346f2/mf.gif' border='0'/><div class.....

Pension 'liberation' fraud triples in three months
The number of pension transfer requests from fraudulent schemes claiming to "liberate" pension funds has increased more than threefold in the past three months, an insurer has said.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/.....

George Osborne broadband growth plan abandoned over state aid complaints
George Osborne has been forced into an embarrassing climbdown over a 150m ultrafast broadband scheme that was meant to spur growth outside London.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2dd346f5/mf.gif' b.....