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Saturday 13 July 2013

UK Financial News on 2013-07-13

Batteries 'not linked' to 787 fire
There is no evidence of a direct link between the Boeing 787 Dreamliner's batteries and the fire at Heathrow Airport on Friday, an investigation finds......

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......

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......

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: What now for fragile Egypt economy?
An interim leader is in place following the ousting of Mohammed Morsi, but will this be enough reassure investors wanting to do business in Egypt?.....

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: Making ends meet after India floods
Flash floods in the Indian state of Uttarakhand in June left more than 800 dead and thousands missing, while relief efforts have been hampered by bad weather......

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......

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......

Keeping the summer holidays cheaper
How to keep the kids happy without breaking the bank.....

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.....

Another Dreamliner Fire
July 12 - Only months after being returned to service, one of Boeing's 787 Dreamliner planes at Britain's Heathrow's Airport caught fire. Jeanne Yurman reports......

Dow, S&P records despite Boeing stock drop
July 12 - Summary of business headlines: Stocks hit record highs, again; Boeing stock falls after plane fire; JP Morgan and Wells Fargo earnings beat estimates; UPS warns; Hulu no longer for sale. Bobbi Rebell reports......

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......

Cable to push for disqualification of disgraced bankers
Vince Cable is to pave the way for the Financial Conduct Authority to disqualify directors of banks in the wake of any future financial crisis.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e9f1d7e/mf.gif' bord.....

Co-op store sales fall against main competitors
Supermarket industry data are likely to put more pressure on the beleaguered Co-operative Group this week by confirming its retail business is in decline.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e9f1d7f/m.....

Wonga hires former skype CFO
Wonga, the payday lender, has moved to beef up its board with the recruitment of the former chief financial officer of Skype.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e9f1d80/mf.gif' border='0'/><div.....

ARM: We have edge on smartphone rival
ARM, the British microchip designer, is planning a fight back against claims that the American giant Intel's new technology threatens its main smartphone business.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2.....

Acces to the skies splits UK aviation
Heathrow will publish its plan for extra runways this week - two days after Boris Johnson says the only solution to Britain's capacity crunch is a new airport on the Thames. Kamal Ahmed reports .<img width='1' height='1' src='http://telegraph.feed.....

'Pied Piper' to fight City ban
The man at the centre of the long-running poaching wars between brokers BGC and Tullett Prebon is to appeal against his ban from the City.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e9f1d83/mf.gif' border='0.....

Centrica's 1.4bn gas store could be shelved
Centrica's 1.4bn plan to convert an empty gas field into a storage facility to help with any future energy crisis could be shelved after the Government signalled that it did not believe Britain needs more storage.<img width='1' height='1' src='htt.....

Co-op's 'super bank' vision dashed
Fresh allegations have emerged that Co-op reassured customers weeks before it faced crisis. James Quinn and Philip Aldrick report<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e9f1d85/mf.gif' border='0'/><.....

Hannam case faces delay
A ruling in the appeal of star banker Ian Hannam may not be delivered until next year after a significant delay in the case.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e9f1d86/mf.gif' border='0'/><div .....

Ageing Britain 'faces up to five more decades of austerity'
The cost of health care and supporting Britain's ageing population will mean the country facing more years of austerity measures, the Government's official forecaster will warn this week.<img width='1' height='1' src='http://telegraph.feedsportal......

Heathrow to rule out fourth runway until 2040
Heathrow is to rule out needing a fourth runway until 2040 as part of its bid to get the green light for a third runway despite local and political opposition.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e9f1.....

Pensioners 'misled' by Co-op Bank
The Co-operative Bank reassured pensioners that their investments were safe a month before announcing plans to slash their savings as part of a last-ditch bail-out.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/.....

Ashley's army marches ahead
Sports Direct founder rides a wave of UK successes, reports Graham Ruddick<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e9f18f7/mf.gif' border='0'/><div class='mf-viral'><table border='0'><tr.....

Tax break boost for shale gas explorers
Brtain's push for shale gas will step up a gear this week as ministers unveil long-awaited details of tax breaks for fracking and pledge to cut red tape for the industry.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568.....

Bebo 'has to be different to get people hooked', says founder Michael Birch
The founder of Bebo bought the website back for a mere 1m. How will he make it fashionable again?<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e9f18fa/mf.gif' border='0'/><div class='mf-viral'><tab.....

Pay day for 2,000 Sports Direct staff as stores' sales and profits increase
Shop floor staff at Sports Direct are in line for a one-off payout worth about 68,000 each after a surge in sales and profits for the retailer.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e9f18fb/mf.gif' bord.....

TicketMaster eyes UK resale market
Ticketmaster, the ticketing arm of the concert giant Live Nation, is poised to grab a bigger share of the British ticket reselling market following a $100m (66m) technology investment.<img width='1' height='1' src='http://telegraph.feedsportal.com.....

North Yorkshire seeks new UK mining boom
A new British mining revolution could be given the go-ahead that could lead to thousands of new jobs.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e9f144d/mf.gif' border='0'/><div class='mf-viral'><.....

Cracking the talent drain
SMEs can look closer to home when they are looking at how to hire the best, writes James Hurley .<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e9f144e/mf.gif' border='0'/><div class='mf-viral'><tab.....

Microsoft questioned despite profit return
Microsoft is expected to announce $7.64bn (5bn) of fourth-quarter operating profits when it unveils its results on Thursday but will still face questions on how the reorganisation it announced last week will spur growth.<img width='1' height='1' s.....

Don't give in to mobile madness
When a supermarket checkout lady refused to serve a customer who was talking on her mobile, the chattering classes heralded her as a champion for good manners.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e9f1.....

Big investors keep Michael Fallon posted on privatisation fears
Word reaches me of a City function a few weeks ago at which some interesting views were exchanged. Drink flowed, food was eaten, men in suits marvelled at the glass architecture. So far, perhaps not so revelatory.<img width='1' height='1' src='htt.....

China's business stars set to burn brightly in the West
Unheard of in Europe, six executives have ambitious plans for growth, says Andrew Cave .<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e9f1456/mf.gif' border='0'/><div class='mf-viral'><table border.....

A cunning plan to agree the pay of RBS's new CEO
As the old joke goes: How do two porcupines make love? With extreme caution. The board of the Royal Bank of Scotland (Porcupine One) is slowly inching towards a shortlist for a new chief executive. The Government (Porcupine Two) is watching very clos.....

Don't write off China even though growth is slowing
Has an investment story ever suffered such a dramatic fall from grace?<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/2e9e72e0/mf.gif' border='0'/><div class='mf-viral'><table border='0'><tr>.....