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Wednesday 21 August 2013

UK Financial News on 2013-08-21

Government in surprise July deficit
The public sector recorded a small but unexpected deficit of 62m in July, a month in which tax payments usually push the public purse into surplus......

US Fed minutes give away few clues
Minutes of the US Federal Reserve's July meeting show few clues about the central bank's timeline for ending its expansionary policies......

City intern death sparks debate
The death of an intern working for Bank of America Merrill Lynch in London has sparked a debate over working hours and conditions for young people......

Byrne: Welfare plans 'in trouble'
Labour's Liam Byrne says welfare overhaul is in "serious trouble" - as the government dismisses his attack as a last-ditch effort to save his job......

Millions 'worse off' on new pension
Millions of people currently entitled to the state second pension will be worse off as a result of the government's pension changes, the TUC has claimed......

UK ponders ban on 'car fob' mobiles
The government considers removing from sale small mobile phones made to look like car key fobs after prison officers raise concerns......

Manufacturers 'see strong rebound'
Manufacturers in the UK are enjoying the strongest rebound in two years, according to a survey by the CBI, with momentum expected to continue......

Inmates given jobs in call centres
Convicted criminals in two prisons in the West Midlands are being paid to work in call centres inside their jails......

Fears over oil and gas production
The sharp decline in production of oil and gas from under British waters is "worrying" industry leaders......

Greece bailout talk intensifies
EU commissioner Olli Rehn declines to rule out another Greece bailout, but says there are other options to keep the existing aid programme going......

India takes steps to boost liquidity
India's central bank says it will inject 80bn rupees ($1.3bn; 750m) into the country's banking system by buying long-term government bonds......

Virgin Islands begins US tax talks
The British Virgin Islands begins talks with US authorities over compliance with a law designed to crack down on offshore tax evasion......

Heineken profits fall on lower sales
Poor weather in Europe and the US contributes to a fall in profits at Heineken, the world's third-largest brewer......

'Significant gap' in pension rates
Some of the UK's biggest insurance companies are offering pension pay-outs that are up to 23% lower than the leading rates, according to the ABI......

Lloyds sells off German life insurer
Lloyds Banking Group sells off some 500m in assets, including German life insurer Heidelberger Leben, as it seeks to meet tougher regulatory requirements......

London Market Report
London's leading shares dip in early Wednesday trading as several key stocks go ex-dividend, dragging down the market......

Bernard Matthews turbine withdrawn
Plans by turkey producer Bernard Matthews to build a wind turbine in Norfolk are withdrawn pending further consultation......

'Rabbit hutch' style homes face curb
The government is to consider curbing the building of so-called "rabbit hutch" homes - where living space is highly restricted - in England......

Male bonuses 'double those of women'
The pay gap between men and women is exacerbated by bonuses given to male managers which are on average double those received by women, says study......

Only 132 signed up to Green Deal
Eight months after the government launched its flagship Green Deal scheme, figures show that only 132 people have signed up to it......

Kenya and China sign $5bn deals
Kenya signs deals worth $5bn (3bn) with China to build a railway line, an energy project and to improve wildlife protection, officials say......

Indonesia stocks enter bear market
Indonesia stocks continue to drop, entering bear market territory, on concerns of slowing economic growth and a widening current account deficit......

Brazil appeals against hotel prices
Brazil's tourism board asks football governing body Fifa and hotel operators to try to bring down "stratospheric" hotel prices during the World Cup......

Green to sever ties with Rangers
Charles Green agrees to stand down as a consultant at Rangers and sell his shareholding in the Ibrox club......

Stadium named after E-cigarette
Merthyr Town Football Club is to rename its ground the Cigg-e Stadium after its sponsor, an electronic cigarette firm......

VIDEO: Greece 'could need another bailout'
Former finance minister, George Papaconstantinou tells HARDtalk the country might need another financial bailout and further debt relief......

VIDEO: Royal baby stamps: Good investment?
A new set of stamps to mark the birth of the Royal Baby has gone on sale. Stamp dealer Tony Bray talks about what makes a stamp worth "millions of pounds"......

VIDEO: Uncertainty over US bank's plans
The US Federal Reserve has suggested that its financial support for the American economy could be eased, possibly as early as next month......

VIDEO: Prisoners 'working in call centres'
Inmates at two prisons in England are being paid to work in call centres, it has been revealed......

AUDIO: Crowdfunding: A risky business?
Crowdfunding is an alternative form of lending - but are investors parting with cash without being fully aware of the risks?.....

AUDIO: Labour: 'Bring down the cost of rent'
The shadow housing minister Jack Dromey tells the Today programme that the cost of renting must be reduced.....

VIDEO: US bank policy: End to uncertainty?
The financial markets have been turbulent in recent weeks due to uncertainty over when the US Federal Reserve will taper its quantitative easing scheme. But questions could be answered when the central bank's minutes are released, as Andrew Walker re.....

VIDEO: Online publishing firms growing
The internet and new technology is making a dream of being an author a reality for many writers. Online self-publishing - bypassing agents and publishing houses is now a fast-growing sector......

The importance of being paranoid
Why successful firms should always plan for bad times.....

Botswana: Backwater to global hub
Botswana's Gaborone - from sleepy backwater to global hub.....

Viewpoints: Should equal gender pay be enforced?
Should equal gender pay be enforced?.....

The city of 2050
How tech will transform our cities over the next few decades.....

The tech to free your inner shopaholic
Tech to make going shopping as painless as going online.....

Patience is key for Fed watchers
Aug. 21 - The minutes of the Fed's July meeting did little to pin down an exact start to the Fed's expected pullback of bond buying- with some members urging patience. Bobbi Rebell reports......

Fed continuing to manage expectations- UBS' Kevin Cummins
Aug 21- UBS' Kevin Cummins says the Fed's consensus remains that the economy will improve in the second half of the year- and they will soon dial back on economic stimulus. Bobbi Rebell reports......

Target is latest to warn of cautious consumer
Aug 21 -Target has joined a growing list of retailers seeing signs of trouble ahead as consumers hold back on spending. Bobbi Rebell reports......

Daily Digit: $1 billion NFL toss up
Stealing NFL Sunday, currently costing DirecTV $1 billion annually, would be a score for Google after reportedly holding talks with the NFL. Conway G. Gittens reports......

Tesla hails top safety rating for Model S
Aug. 21 - Electric car company Tesla says its Model S sedan has won a five-star safety rating in every category tested by safety regulators, a distinction awarded to just one percent of all vehicles tested in the United States. Ben Gruber reports......

ECB in Athens as third-bail out debate heats up
Aug.21 - European Central bank executive Joerg Asmussen says there are no plans to boost Greece's bailout program before a spring review next year, a day after Germany's finance minister said a third aid programme would be needed to keep Athens afloa.....

Breakingviews: Big Blues got the blues
Aug 21 - Rob Cox and Robert Cyran analyze problem signs with IBMs results and discuss the usually conservative companys accounting practices......

Sharing boom challenges business
Aug.21 - The internet is enabling a shift in consumer habits through the rise of the sharing economy and the websites that host renting out your spare room or lending a power drill to complete strangers are giving big companies a run for their money......

Target is latest to warn of cautious consumer
Aug. 21 - Target has joined a growing list of retailers seeing signs of trouble ahead as consumers hold back on spending. Bobbi Rebell reports......

Europe Day Ahead: One of our central bankers is missing
Aug. 21 - Central bankers head to Jackson Hole, but with Fed chairman Ben Bernanke not attending is it still the place to be? Meanwhile, Europe growth hopes mount and Mubaraks release could roil Egypt again......

Heineken toasts emerging market surge
Aug.21 - Weak demand, poor weather and government measures in Europe are casting a pall over Dutch brewer Heineken and rival Carlsberg, but growth in emerging markets continues. Ciara Sutton reports......

Alleged kingpin of U.S. penny stocks fraud arrested in Thailand
Aug. 21 - Thai authorities arrest a Canadian man accused of masterminding a $140 million plan to defraud investors in U.S. penny stocks. Lily Grimes reports......

Market Pulse: Decent exposure = US; Indecent exposure = EM
As emerging markets continue to crumble - the Turkish lira hit a record low today - investors should buy large-cap European stocks with good US exposure. ETX Capital's Ishaq Siddiqi tells which ones......

China's new vehicle for profit: the cruise ship?
Aug. 21 - China's newly-minted middle class have the money and want to travel. But will they do it by ship? And can the ambitious investments in the country's emerging cruise industry pay off?.....

Breakingviews: RBS branches - list, don't sell!
commentary unit Breakingviews......

Breakingviews: RBS branches - list, don't sell!
commentary unit Breakingviews......

As India's economy sinks, investors look for answers
Aug. 21 - Indian authorities are under huge pressure to prop up the nation's ailing economy as investors take fright and the rupee hovers near record lows - but the response so far has been muted......

Reuters Today: Euro grinds higher, nerves fray ahead of Fed
Aug. 21 - Improved euro sentiment and a backtrack on long-dollar positions lift euro, says HSBCs Daragh Maher. Plus, Carlsberg & Heineken results......

Reuters Today: Frayed nerves ahead of Fed
Aug. 21 - Despite a bounce in the US on Tuesday, equity markets around the globe are still decidedly nervous ahead of the release of Fed July meeting minutes......

Economy 2013: Brick boss eyes building recovery in Europe
Aug. 21 - Does recovery at the world's largest brickmaker point to a rebound in Europe? We talk to Wienerberger CEO Heimo Scheuch......

Five-day blues for blue chips
Aug. 20 - Summary: Retail earnings lift stocks but the Dow falters for the fifth day in a row; Home Depot shines along with housing rebound; J.C. Penney loses money but sees "encouraging" back-to-school season; Best Buy turns a profit but tough times.....

Is Best Buy stock really a best buy?
Aug. 20 - Best Buy's stock has jumped on its recent turnaround efforts- but there are reasons it could lose its spark. Bobbi Rebell reports......

Dimon under siege
Aug. 20 - Legal woes continue to rise for JPMorgan Chase and its CEO Jamie Dimon including allegations of energy manipulation and bribery in China. Conway G. Gittens reports......

Fundamentals don't back up Best Buy stock price - Morningstar's Hottovy
Best Buy stock is overvalued according to Morningstar's R.J.Hottovy, who says the company doesn't have any inherent cost advantages over competitors like Amazon and Wal-Mart. Bobbi Rebell reports......

"Golden Rice" galvanises both sides of Philippines food fight
Aug. 20 - The long-running debate over genetically modified rice in the Philippines has intensified, with farmers and environmentalists pitted against scientists over so-called "Golden Rice". The issue is now back in the headlines as both sides prepa.....

China signs up to G20 crackdown on tax evasion
China has agreed to join the international effort by the Group of 20 leading economies to combat tax evasion by signing an agreement to share tax records, the OECD said.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/5683.....

HP sees profits rise despite a slump in PC sales
Hewlett-Packard saw profits return in the past quarter, but slumping PC sales took a bite out of revenues of the troubled US technology giant.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/303cbfa5/sc/2/mf.gif' .....

Martin Weale: 'We cannot take this recovery for granted'
In the parlance of financial markets, Martin Weale, one of four external members on the Bank of England's Monetary Policy Committee, is thought of very much as an interest rate "hawk".<img width='1' height='1' src='http://telegraph.feedsportal.com.....

Martin Weale: It's difficult not to be concerned about inflation
Martin Weale, the lone dissenter against Governor Mark Carney's plan to provide forward guidance on the future path of interest rates explains what spurred his decision.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/5683.....

SFO joins investigation into JP Morgan's 3.9bn 'London Whale' losses
The Serious Fraud Office has become involved in investigations into the $6bn (3.9bn) loss on derivatives at JP Morgan, in the first sign the "London Whale" scandal is being scrutinised by UK prosecutors.<img width='1' height='1' src='http://telegr.....

More QE could be needed, says MPC 'hawk' Martin Weale
Exclusive: The Bank of England may need to resort to further quantitative easing if the economy stalls again, a member of the Monetary Policy Committee has conceded.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s.....

Mark Zuckerberg aims to take internet to further 5bn people
Facebook founder and chief executive Mark Zuckerberg is to head up a new global partnership with the aim of making internet access available to another 5bn people.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/3.....

When working all hours takes a terrible toll
For many ambitious professionals, an exhausting regime is the only way to succeed, says Venetia Thompson<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/303be2c1/sc/1/mf.gif' border='0'/><br clear='all'/>.....

Banks face 1.5bn compensation bill for mis-selling credit card insurance
Britain's biggest banks face a compensation bill for up to 1.5bn to pay for six years of mis-sold credit card and identity theft insurance.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/303c0f66/sc/25/mf.gif' bo.....

Kodak tries to picture a future selling nothing to consumers
Eastman Kodak Company wins permission from US judge to emerge from 18 months in bankruptcy.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/303c0f67/sc/22/mf.gif' border='0'/><br clear='all'/><div clas.....

Banks flock to Twitter for flotation
Twitter is being courted by banks pitching to take the company public, laying the groundwork for what would be the most high-profile technology flotation since Facebook's disastrous debut last year.<img width='1' height='1' src='http://telegraph.f.....

Federal Reserve minutes reveal caution over tapering
FOMC members are "broadly comfortable" with the idea that it should start tapering later this year.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/303b45c1/sc/24/mf.gif' border='0'/><br clear='all'/><.....

George Osborne may yet have the last laugh on public finances
In theory, the improving economic outlook will be a boon for the public finances.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/303b4358/sc/25/mf.gif' border='0'/><br clear='all'/><div class='mf-vira.....

China intensifies investigation into British risk consultant
Chinese authorities have stepped up an investigation into a British risk consultant who has been held by police for six weeks amid a probe into corruption in the pharmaceuticals industry.<img width='1' height='1' src='http://telegraph.feedsportal......

Heinz could cut 250 UK jobs
Food group Heinz could cut up to 250 jobs in the UK as part of a restructuring of the business.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/303a9734/sc/24/mf.gif' border='0'/><br clear='all'/><div .....

Poland's shale drive will transform Europe, if it does not drop the ball
The US Energy Department thinks Poland has enough shale gas to power the country for 300 years.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/303a9736/sc/29/mf.gif' border='0'/><br clear='all'/><div .....

Football ground becomes the 'Cigg-E' stadium in controversial sponsorship deal
Worried health officials hit out today as a football club revealed e-cigarette company Cigg-E had bought the naming rights to its stadium.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/303b11cc/sc/21/mf.gif' bor.....

Key backer pulls out of $5bn AIG deal
AIG's sale of its $4.8bn aircraft leasing arm has been plunged into turmoil after a key backer for the consortium that agreed to buy the unit pulled out.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/303a8c67/sc.....

Business news and markets: as it happened, August 21, 2013
US markets open lower ahead of closely-watched minutes by the Federal Reserve, with any hint of a shift in position on money printing likely to spur more volatility.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s.....

Ofcom to cut landline phone termination charges
Ofcom is set to slash the cost that telecoms operators charge for landline telephone calls after warning of BT's "significant market power".<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/3039bee2/sc/46/mf.gif' b.....

Business news and markets: live
US markets open lower ahead of closely-watched minutes by the Federal Reserve, with any hint of a shift in position on money printing likely to spur more volatility.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s.....

Cities offering the biggest returns to landlords
Buy-to-let properties outside of London offer the highest rental yields to landlords, with some areas returning 10pc or more.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/303925ee/sc/22/mf.gif' border='0'/>&.....

Landlords in Birmingham and Kent make biggest returns
Buy-to-let properties outside of London offer the highest rental yields to landlords, with some areas returning 10pc or more.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/303922fe/sc/22/mf.gif' border='0'/>&.....

Landlords in Birmingham and Kent make biggest returns
Buy-to-let properties outside of London offer the highest rental yields to landlords, with some areas returning 10pc or more.<img width='1' height='1' src='http://telegraph.feedsportal.com/c/32726/f/568300/s/30391ea0/sc/22/mf.gif' border='0'/>&.....

STV ready for first dividend in seven years after turnaround
STV, the Scottish broadcaster behind programmes including Country Show Cook Off and The Poison Tree, is set to pay its first dividend for seven years after pulling off a lengthy turnaround plan.<img width='1' height='1' src='http://telegraph.feeds.....