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Friday 12 July 2013

UK Financial News on 2013-07-12

Dreamliner catches fire at Heathrow
Flights resume at Heathrow Airport after runways were closed for 90 minutes due to a fire on a parked Ethiopian Airlines Boeing 787 Dreamliner jet......

Co-op appoints bank failings inquiry
The Co-operative Group appoints an independent inquiry into the management decisions that led to the Co-op Bank needing a 1.5bn rescue......

US banking giants see profits jump
US banks JP Morgan and Wells Fargo both report strong rises in profits for the second quarter of the year......

Portugal's borrowing costs rise
Portugal's borrowing costs jump to a seven-month high as political tensions rise over the terms of the country's bailout......

Morrisons says shoppers struggling
A third of Morrisons' customers are "one pay cheque away" from not being able to pay their mortgages, according to its chief executive Dalton Philips......

Hulu's owners call off sale
After looking for months to find a buyer, Hulu's owners Walt Disney, 21st Century Fox and NBC Universal call off the search......

Steep rise in football transfer fees
The amount of money spent on football transfers has risen sharply in the past six months, says Fifa, although the number of deals has fallen slightly......

First-time buyer revival continues
The number of first-time buyers taking out mortgages is now at its highest since December 2007, according to the Council of Mortgage Lenders......

Car industry in 1bn funding boost
The government and the car industry are to invest 1bn developing an advanced propulsion centre, dedicated to creating low-carbon engines......

North East worst for insolvencies
People living in the north-east of England are still the most likely to become insolvent, according to government figures......

UK construction shows signs of life
A revival in building activity has boosted the UK's construction sector, official figures show.....

Invensys confirms takeover approach
UK engineering firm Invensys confirms it has received a takeover approach from France's Schneider Electric, which it is likely to accept......

London Market Report
The FTSE 100 rises after US shares on Wall Street hit record highs......

S&P upgrades Irish credit outlook
Standard & Poor's upgrades its credit outlook for the Republic of Ireland from "stable" to "positive", arguing the country's debts are falling faster than expected......

Minister denies cigarette 'U-turn'
The government rejects Labour claims it was pressured into delaying a decision on banning cigarette branding by the tobacco industry......

China 'may accept growth below 7%'
China's finance minister, Lou Jiwei, hints that economic growth may fall below 7% as Beijing seeks to rein in the country's construction boom......

Russia buys typewriters 'over leaks'
Russia's agency responsible for the Kremlin security is buying typewriters - a move reportedly prompted by recent leaks by WikiLeaks and Edward Snowden......

F1 Mercedes sells for 17.5m
A rare racing car driven by Formula 1 legend Juan Manuel Fangio sells for 17.5m in what is believed to be a record for a car sold at auction......

Pension reform 'will hit the young'
Young people will lose out the most from planned reforms to the state pension, a report from the Institute for Fiscal Studies warns......

'Debt peril' warning over rate rises
The number of families in "debt peril" could double over the next four years if interest rates rise faster than expected, a think tank warns......

US budget surplus highest in 5 years
The US government reported a budget surplus of $116.5b (77.02b) in June, the most in five years......

Bank of Japan upbeat on economy
The Bank of Japan gives an upbeat assessment of the country's economy, saying it is starting to "recover modestly"......

Osborne: No tax rises to cut deficit
Chancellor George Osborne moves to put tax at the heart of the next election campaign by saying the Tories will clear the deficit through cuts alone......

Man City planning to expand Etihad
Manchester City announce plans to expand the capacity of their Etihad Stadium from 47,000 to as much as 60,000......

Unrest forces end of Egyptian league
Continuing unrest in Egypt has brought the country's football league to a premature end, with Al Ahly and Zamalek declared champions......

Brazil row over topless fan ban
Controversial new plans which include a ban of shirtless and standing fans at Rio de Janeiro's Maracana stadium are causing outcry in Brazil......

VIDEO: Will pesticide ban stop decline of bees?
Declining numbers of the honeybee have prompted the government to launch an urgent and comprehensive review of the threat......

VIDEO: Hugh's review: Growth gaining traction?
For once the UK's economic growth outlook has been upgraded, with the IMF raising its forecast for 2013 from 0.7% to 0.9%......

VIDEO: Perils of plunge in gold prices
Gold prices have plunged during 2013, which is bad news for investors who bought up stocks when the precious metal hit an all time high in 2011......

VIDEO: US and China eye investment treaty
The US and China have agreed to start talks over an investment treaty that would make it easier for US companies to invest in China......

VIDEO: GSK to investigate China claims
Authorities in China have launched a probe against some senior executives of the Chinese division of GlaxoSmithKline (GSK) over allegations of bribery......

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

AUDIO: 1bn pledge for automotive industry
The government and the car industry are to invest 1bn building a new advanced propulsion centre, Business Secretary Vince Cable has announced......

How much does a good sea view cost?
How much would you pay for a view of the sea?.....

Fixing work to make us happier
It makes many of us unhappy - so how do we fix it?.....

Bosses who look 100 years ahead
The companies who plan 100 years in advance.....

Changing times for games makers
Why life can be tough for video game makers.....

Uniqlo looks to Bangaladesh middle class
Uniqlo looks to cash in on Bangladesh's middle class.....

The crisis facing South Africa's gold mines
Is the sun going down on South Africa's gold mines?.....

Brewing up a storm in Brooklyn
Beer sales are on the decline. Yet the 25-year-old Brooklyn Brewery is expanding. Antony Currie talks to President and Co-founder Steve Hindy about how he's been so successful with his suds......

Banks' results beat but clouds loom
July 12 - Banking giants JP Morgan Chase and Wells Fargo handily surpassed second quarter targets but a repeat performance in the year ahead may be challenging. Jeanne Yurman reports......

U.S. Week Ahead: Bernanke to face the heat on the Hill
July 12 - Fed Chair Ben Bernanke will face members of the U.S. House of Representatives and Senate on Wednesday and Thursday, as part of the Feds semi-annual report on monetary policy......

Quality of JP Morgan's profit weaker than in past- S&P's Oja
July 12 - S&P's Erik Oja says while J.P. Morgan's 31 percent increase in second quarter earnings looks good on the surface, too much came from lower loan loss provisions. Jeanne Yurman reports......

Techquity: Investors hungry for Yelp, Apple and Google talk
July 12 - Yelp hits a 52-week high and Google's Eric Schmidt says the companies are on friendlier terms than believed......

DAILY DIGIT: UPS' 4.1 bln packages
July 12 - United Parcel Service, the company that delivered 4.1 billion packages in 2012, now says its profit will be smaller than Wall Street expects. Bobbi Rebell reports......

Trading at Noon: Tracking UPS after lower forecast
July 12 - Shares of UPS and Fedex fall after UPS lowered its forecast, blaming the economy......

MuniLand: Oversold munis present buying opportunity
Huge outflows and interest rate concerns have formed a dark cloud over the municipal bond market, but the overselling could offer buying opportunities for more prudent investors......

Breakingviews: Banking on profit
Richard Beales talks to Breakingviews columnists about JPMorgan and Wells Fargos decent Q2 earnings, and how recent interest-rate increases are affecting the two mega-banks......

Portugal opposition wants bailout revamp
July 12 - Portugal's prime minister says he's committed to reaching a cross-party deal to conclude the country's 78 billion euro bailout programme by June 2014 - but in a fresh hurdle for the crisis-hit government, the opposition is demanding the ter.....

Banks hike profits in double digits
July 12 - Big profit gains at JPMorgan and Wells Fargo suggest the US economy is improving. Fred Katayama reports......

Shift to home purchase market will help Wells Fargo- Macquarie's Alonso
July 12 - The shift towards new loan originations and away from refinancings as rates rise will help Wells Fargo says Tom Alonso, Senior Analyst, U.S. Banks, at the Macquarie Group. Bobbi Rebell reports......

Europe Week Ahead
July 12 - A look to the close of the European markets and a look ahead to next weeks trading, as well as what to expect from the Asian markets on Monday......

FACTBOX: Forward guidance and central banks
July 12 - The ECB and Bank of England have undergone a momentous change in their communication policy over their outlook in the past week. And it is set to stay that way.(Factbox - no reporter narration)......

The Upside: Why Egypt should look to Turkey
Columnist Zachary Karabell talks to Mideast expert Richard Bulliett about the future for the Egyptian revolution.....

UK govt plans to sell part stake in Lloyds
July 12 - The British government is preparing to sell about a quarter of its 39 per cent stake in Lloyds Banking Group later this year, and wants it to be seen as a significant milestone in Britain's recovery from the 2008 financial crisis. The gover.....

U.S. Morning Call: JPMorgan's Dimon swims ahead of the Whale
July 12 - JPMorgan Chase reported a 31 percent rise in quarterly profit as trading revenue rebounded and avoided another "London Whale" derivatives loss......

Is Ireland really on road to recovery?
July 12 - Ratings agency S&P has upgraded its outlook for Ireland from 'stable' to 'positive' on hopes the government may cut its debt faster than expected. But as Ivor Bennett reports, the mood in recession-hit Ireland remains far from positive as .....

How mega is Nokia's new camera phone?
July 12 - Nokia unveils a new smartphone with a 41-megapixel camera, banking on advanced optics to make up for meagre marketing resources and a limited range of phone apps. But as Ivor Bennett reports, analysts are sceptical the Finnish company will .....

Market Pulse: Ben puts fizz into gold, but beware the fizzle
July 12 - Gold has its best week in almost two years thanks to Ben Bernanke's 'taper' remarks. But that's about as good as it gets - look for more selling and maybe a fall below $1,000, says Credit Suisse......

Market Pulse: What's Moving Today and Why
Insider has its finger on the market pulse, analyzing and making sense of the biggest movers of the day......

Breakingviews: Moelis cash payout whets appetite for more
July 12 - Moelis $35 million payout shows the partnership model in investment banking can deliver. The snag is that Moelis' liquidity-deprived partners will expect a repeat......

Reuters Today: China risk looms
July 12 - European shares seen edging higher on Friday, tracking record highs on Wall Street. But China GDP data on Monday could cap gains......

China netizens rush to GlaxoSmithKline's defence
July 12 - It's been accused of bribery by China's authorities, but social media users don't seem convinced UK drugmaker GlaxoSmithKline -- or other foreign firms -- are the bad guys. Anita Li reports......

Singapore's wealth machine revs up, but leaves more behind
July 12 - Singapore's economic growth jumped in the second quarter, but the gains are not trickling down to low wage earners. We look at the growing wealth divide in one of Asias most important financial hubs......

Boeing shares dive after Dreamliner catches fire at Heathrow
Shares in Boeing took a nosedive on Friday after one of its Dreamliner 787 aircrafts caught fire while parked at Heathrow, closing the airport.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e951018/mf.gif' bord.....

TDR frontrunner to buy David Lloyd Leisure
Private equity group TDR Capital has emerged as the frontrunner in the race to buy upmarket gym group David Lloyd Leisure.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e97acca/mf.gif' border='0'/><div cl.....

Fitch strips France of AAA rating
Ratings agency Fitch downgraded France from the top AAA credit rating, citing a heavier government debt load and poor prospects for growth.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e97accb/mf.gif' border='.....

Constitutional crisis pushes Portugal closer to the brink
Portugal's borrowing costs have spiked dramatically after key political parties failed to agree on a national salvation front, raising the risk of a snap election and an anti-austerity revolt.<img width='1' height='1' src='http://telegraph.feedspo.....

Britain is open for business, but at what cost?
Britain benefits greatly from its open attitude, but there is a balance to be struck.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e962215/mf.gif' border='0'/><div class='mf-viral'><table border='0.....

Britain braced for barbecue weekend
Britain's supermarkets expect to sell millions of burgers, sausages and steaks this weekend as the sizzling sunshine pushes the horsemeat crisis into history.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e9615.....

Reckitt hit by drug worries
Shares in the blue-chip company slid on worries over its Suboxone treatment.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e9537e3/mf.gif' border='0'/><div class='mf-viral'><table border='0'><.....

Liberum Capital poaches Espirito Santo brokers
A group of 12 bankers have resigned from stockbroker Espirito Santo en masse in favour of rival Liberum Capital in the latest consolidation in the City of London's small and mid cap broking sector.<img width='1' height='1' src='http://telegraph.fe.....

Government unveils 1bn investment in car of the future
The Government and the car industry will invest 1bn in a research centre that will help secure 30,000 jobs.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e90c228/mf.gif' border='0'/><div class='mf-viral'&.....

Invensys and Phoenix deals pave way for M&A boom
London is set for a wave of mergers and acquisitions in the second half of the year after a spike in deal negotiations.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e950d8d/mf.gif' border='0'/><div class.....

Business news and markets: as it happened, July 12, 2013
Portuguese borrowing costs rose back above 7pc on Friday on worries over the country's political crisis and its 78bn troika bail-out.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e950d8e/mf.gif' border='0'/>.....

JP Morgan Chase posts 31pc rise in profits
JP Morgan's profits surged 31pc to $6.5bn (4.3bn) in the second quarter, setting a new record and dampening fears of a slowdown in the banking industry.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e92d1e5/mf......

The UK's fall from grace has been horrific - but we might be turning a corner
In the next few weeks, the first estimate of UK GDP for the second quarter of 2013 will be released.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e9426b9/mf.gif' border='0'/><div class='mf-viral'><.....

Payday lender QuickQuid says sorry for threatening emails
One of the biggest payday lenders sent emails with threats of debt collectors to people who hadn't borrowed any money.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e941603/mf.gif' border='0'/><div class=.....

Business news and markets: live
Portuguese borrowing costs rose back above 7pc on Friday on worries over the country's political crisis and its 78bn troika bail-out.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e8e43eb/mf.gif' border='0'/>.....

Should you help your child buy a house?
If you don't help your children, they might never own a home, says Richard Dyson.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e941604/mf.gif' border='0'/><div class='mf-viral'><table border='0'>.....

Calls for Scottish stamp duty reforms to be copied across the UK
Britain's most-hated tax is about to be overhauled - but only if you live in Scotland.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e941606/mf.gif' border='0'/><div class='mf-viral'><table border='.....

Getting off stamp duty Scot-free
Britain's most-hated tax is about to be overhauled - but only if you live in Scotland.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e92db2b/mf.gif' border='0'/><div class='mf-viral'><table border='.....

Nationwide and Co-op address capital shortfalls
Britain's financial watchdog has given Nationwide until the end of 2015 to fill a capital hole estimated to be 1.8bn on an eventful day for the mutual sector.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e9658.....

Co-op launches review into 1.5bn black hole
The Co-operative Group has launched an independent review into the events that led to a 1.5bn capital shortfall at its banking unit.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e92d877/mf.gif' border='0'/>.....

World's largest building opens in China
The giant New Century Global Centre has opened to the public in the city of Chengdu. We take a look.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e92cdf2/mf.gif' border='0'/><div class='mf-viral'><.....

News Corp to move all its UK businesses to 'the baby Shard'
News Corp will move all its British businesses under one roof next year in a move south of the river to London Bridge that will break its historic ties with Wapping.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s.....

News Corp to move all it UK businesses to 'the baby Shard'
News Corp will move all its British businesses under one roof next year in a move south of the river to London Bridge that will break its historic ties with Wapping.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s.....

Ford boss says European car decline is bottoming out
Steve Odell, Ford's head of Europe, said the steep contraction in the continent's car industry appears to be grinding to a halt.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e91ba08/mf.gif' border='0'/><.....

Balance transfer deals heat up as RBS and Natwest offer competitive rates
Money MoT: New credit card rates from RBS and Natwest push the two banks to the top of the tables for balance transfers - just behind Barclays.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e90c7fa/mf.gif' bord.....