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Exclusive - EU says Chinese FTA possible, but wants market opening

Tue, 21 May 2013 19:31:54 +0100

By Ethan Bilby BRUSSELS (Reuters) - The European Union is willing to deepen trade ties with China but wants to see concessions from Beijing first, documents seen by Reuters on Tuesday showed. At the same time as EU regulators are ramping up trade pressure on Beijing by threatening duties on solar panels and telecoms equipment, Brussels is dangling the carrot of trade agreements before the Chinese. ...

EU leaders look to end Apple-style tax avoidance schemes

Tue, 21 May 2013 19:27:27 +0100

By Luke Baker and Mark John BRUSSELS/PARIS (Reuters) - Growing concern in European capitals about aggressive tax avoidance by high-profile corporations such as Amazon, Google and Apple looks set to steal the agenda of a European Union summit in Brussels on Wednesday. The summit was originally called to discuss energy policy and tax coordination, but press reports in Britain, France and the United States exposing how little tax major international companies have been paying by carefully structuring their European operations has forced the issue up the agenda. ...

Apple Tax: CEO Tim Cook Denies 'Gimmicks'

Tue, 21 May 2013 19:18:37 +0100

Tim Cook his said Apple complies with the spirit and the letter of the law and denied the firm's tax regime is a "sham".

Dimon keeps JPMorgan chairman title after bruising battle

Tue, 21 May 2013 19:17:09 +0100

By David Henry TAMPA, Florida (Reuters) - Jamie Dimon, JPMorgan Chase & Co's outspoken chairman and chief executive, won a vote of confidence on Tuesday as shareholders recommended that he keep his chairman title, giving him a greater margin of approval than last year. Investors who had pressed for Dimon to be stripped of his chairman title said they believed they lost because of the chief executive's hints he would quit if he did not win the vote. Just 32.2 percent of shareholder votes were in favour of a proposal to create an independent chairman, compared with 40. ...

Vodafone India exec says IPO unlikely this year

Tue, 21 May 2013 18:47:41 +0100

NEW DELHI (Reuters) - A planned initial public offering of Vodafone Group Plc's Indian unit is unlikely this year, the unit's Chief Executive Marten Pieters said in New Delhi on Tuesday. Pieters said the company will wait for clarity on rules around airwaves and cellular permits before going ahead with the IPO. (Reporting by Devidutta Tripathy; editing by Matthias Williams and Gopakumar Warrier)

Telefonica, Vodafone hit by defections in tight Spanish market

Tue, 21 May 2013 18:47:41 +0100

MADRID (Reuters) - More than half a million Spaniards switched mobile phone operator in March to take advantage of the cheap deals on offer from competitors, with the market's main players Telefonica and Vodafone the biggest losers. In the first three months of the year more than 1.8 million consumers moved to another mobile company, data from telecoms regulator CMT showed on Tuesday. ...

Vodafone chief Colao says happy with Verizon stake

Tue, 21 May 2013 18:47:41 +0100

By Kate Holton and Paul Sandle LONDON (Reuters) - Vodafone boss Vittorio Colao staked his reputation on selling the group's prized stake in U.S. operator Verizon Wireless at the right time and right price, saying on Tuesday he would not bow to pressure to do any deal. Contemplating what could be the world's third-largest ever corporate deal, Colao and his number two Andy Halford said they were happy holders of the 45 percent stake, following increasing demands from majority owner Verizon Communications Inc for a sale. ...

EU watchdog unveils caps for bank bonuses

Tue, 21 May 2013 18:36:06 +0100

By Huw Jones LONDON (Reuters) - EU regulators confirmed on Tuesday that they will cap bonuses of bankers earning more than 500,000 euros a year and added other conditions to make the pay ceiling harder to smash. The headline figure was leaked last Friday, triggering warnings by banks in the European Union that they may lose staff to other parts of the world, and that London, the bloc's top financial centre, could be damaged. Accounting firm PwC predicted that the number of London bankers affected will be 10 times the number hit by current pay curbs. ...

Government plans to boost fund industry

Tue, 21 May 2013 18:31:57 +0100

LONDON (Reuters) - Britain has launched a campaign to attract more investment fund money to the country, with plans for tax breaks, cutting red tape and marketing campaigns in Asia and the Americas. In speeches to fund management executives on Tuesday afternoon, Treasury ministers Sajid Javid and Greg Clark said they aim to reverse a weakening of the UK's dominance as a centre for the funds industry. While London and Edinburgh are the locations for teams of fund managers at firms such as Schroders and Aberdeen Asset Management, more funds are domiciled in Dublin and Luxembourg. ...

Buckley Shortlisted For Top Smiths Job

Tue, 21 May 2013 18:25:48 +0100

Sir George Buckley, one of Britain's most seasoned industrialists, has been shortlisted for the top boardroom job at Smiths Group, the FTSE-100 engineering and technology group.

Europe oil probe seeks market abuse evidence in 2010-2013

Tue, 21 May 2013 18:22:46 +0100

By Dmitry Zhdannikov and Peg Mackey LONDON (Reuters) - The European Commission is asking oil traders across the continent to provide evidence of market abuse to determine whether companies sought to manipulate prices reported to leading price-setting agency Platts. Authorities last week raided the London bureau of Platts and the offices of oil majors Statoil , Royal Dutch Shell and BP in the biggest cross-border action since the probe into rigging of Libor benchmark interest rates. A small niche trading house in the Netherlands is also part of the probe. ...

Exclusive - Intel CEO shakes up units, creates 'new devices' group

Tue, 21 May 2013 18:19:44 +0100

By Noel Randewich SAN FRANCISCO (Reuters) - Intel Corp's new chief executive, Brian Krzanich, has launched a sweeping reorganization of the world's top chipmaker and created a unit aiming to retake the top chipmaker's lead in mobile and semiconductor innovation. The shakeup, announced internally just days after the 30-year veteran took the helm, places most of Intel's main product groups directly under his supervision and hands its sprawling global manufacturing operation to new president Renee James, said a source close to the company, who declined to be identified. ...

Hopes rise for deal on delayed EU insurance rules

Tue, 21 May 2013 18:02:07 +0100

By Huw Jones LONDON (Reuters) - The European Union is nearing a deal on long-delayed insurance rules that the bloc has touted as a regulatory benchmark for the world to follow, regulatory and policy officials said. The rules, known as "Solvency II", will seek to improve the method for deciding how much capital an insurer must hold as a safety buffer by better assessing risks and liabilities from customer policies. A decade in the making and originally due to take effect in late 2012, the EU rules were delayed to apply lessons from the financial crisis. ...

U.S. Senate panel peels back Apple's offshore taxes

Tue, 21 May 2013 17:55:46 +0100

By Patrick Temple-West WASHINGTON (Reuters) - Apple Inc's chief executive officer defended the company's tax record at a Tuesday Senate hearing where lawmakers said the maker of iPads, iPods and Mac computers kept billions of dollars in profits in Irish subsidiaries to avoid U.S. taxes. The hearing marked another foray by the Senate's most powerful investigative committee into corporate offshore tax avoidance, which is increasingly a target of many governments from the United States to Western Europe. ...

Bank of Canada's Carney says Europe needs big reforms

Tue, 21 May 2013 17:49:04 +0100

By Leila Lemghalef MONTREAL (Reuters) - Europe could face a decade of stagnation unless it makes big reforms and should heed the lessons of Japan, Bank of Canada Governor Mark Carney said on Tuesday as he highlighted Japan's bold moves to bolster growth. In his final speech as Canadian central bank chief before taking over the Bank of England on July 1, Carney said Europe's recessionary economy is being held back by fiscal austerity, low confidence and tight credit conditions. "Deep challenges persist in its financial system. ...

The Irish loophole behind Apple's low tax bill

Tue, 21 May 2013 17:47:44 +0100

By Tom Bergin LONDON (Reuters) - Apple's ability to shelter billions of dollars of income from tax has hinged on an unusual loophole in the Irish tax code that helps the country compete with other countries for investment and jobs. A U.S. Senate investigation has revealed that Apple, maker of iPhones, iPads and Mac computers, had channelled profits into Irish-incorporated subsidiaries that had "no declared tax residency anywhere in the world". ...

FTSE 100 edges closer to all-time high

Tue, 21 May 2013 17:32:32 +0100

By David Brett LONDON (Reuters) - The FTSE top share index closed within sight of its all-time high on Tuesday, lifted by mining stocks and positive corporate news from luxury retailer Burberry among others. The FTSE 100 index ended up 48.24 points, or 0.7 percent, at 6,803.87, its highest finish since its record close of 6,950.60 in late 1999. "There is nothing to suggest that we can't keep going higher. We have broken through previous highs and it can be sustained if we see economic recovery and earnings upgrades come through," Neil Shah, director at Edison Investment, said. ...

Fiat Industrial seeks UK residence to cut tax bill

Tue, 21 May 2013 17:28:53 +0100

By Jennifer Clark MILAN (Reuters) - Italy-based truck and tractor maker Fiat Industrial plans to lower its tax bill by shifting its residence to Britain after a planned merger with unit CNH , a move that drew angry reactions from politicians and unions on its home turf. The criticism tapped into a widening debate on corporate tax avoidance which has become a hot political topic in some western countries in recent months. A string of U.S. multinationals including Apple , Google , Amazon. ...

Government plans policy sweeteners for insurance industry

Tue, 21 May 2013 17:12:09 +0100

By Chris Vellacott LONDON (Reuters) - Britain plans to boost the insurance industry with policy sweeteners such as tax breaks, hoping to nurture it as a source of investment and an engine of economic growth. Treasury minister Greg Clark said the government would extend to the insurance industry a series of measures announced earlier this year to boost asset managers. "The government recognises that the insurance industry is a key asset for this country and is determined to maintain and sharpen the sector's competitive edge," Clark told a conference run by specialist publisher Insurance Day. ...

Irish opposition calls for multinationals to face parliament

Tue, 21 May 2013 17:03:32 +0100

DUBLIN (Reuters) - An Irish opposition party called on Tuesday for Irish-based multinationals to be questioned on corporate tax by a parliamentary committee as debate raged over how much tax the companies actually pay. Ireland has been defending its corporate tax rate after the U.S. Senate said on Monday that Apple paid little or no tax on tens of billions of dollars in profits in Irish subsidiaries and that it had negotiated a special corporate tax rate of less than 2 percent. (Reporting by Padraic Halpin; Editing by Jon Hemming)

Factbox - Draft EU rules to cap bankers' bonuses

Tue, 21 May 2013 16:56:40 +0100

(Reuters) - The European Banking Authority (EBA) on Tuesday published draft rules on how national regulators in the European Union must decide which bankers will have their bonus capped from 2014. The EBA launched a public consultation until August 21 on its rules for implementing an EU law that says bonuses must be no more than fixed salary. A bonus can be twice salary with shareholder approval. ...

Exclusive - Glencore's top aluminum executive to leave, first exit since takeover-sources

Tue, 21 May 2013 16:53:57 +0100

By Josephine Mason NEW YORK (Reuters) - Glencore Xstrata's head of aluminum, Gary Fegel, is set to leave the company, three sources said, the first high-profile departure since commodity trading giant Glencore closed its purchase of miner Xstrata this month. Fegel's departure from one of the most powerful jobs in the global aluminum market will come as a surprise to many since he was reconfirmed in the post just weeks ago, and aluminum is one of the few areas of Glencore's mining portfolio that has no overlap with Xstrata. ...

Ireland rejects blame for Apple's low tax rate

Tue, 21 May 2013 16:36:42 +0100

By Conor Humphries and Padraic Halpin CORK/DUBLIN (Reuters) - Ireland said on Tuesday it was not to blame for Apple Inc's low global tax payments and had no special rate deal with the company after the U.S. Senate said it paid little or no tax on tens of billions of dollars in profits stashed in Irish subsidiaries. The Irish government, which has seen the luring of U.S. multinationals with low taxes as a key part of its economic policy since the 1960s, said its system was transparent and other countries were responsible if the tax rate paid by Apple was too low. ...

Irish PM says U.S. Senate's Apple tax claims incorrect

Tue, 21 May 2013 16:36:42 +0100

DUBLIN (Reuters) - Ireland does not cut special tax deals with foreign companies and a U.S. Senate report saying it did so for Apple Inc is incorrect, Irish Prime Minister Enda Kenny said on Tuesday. Ireland has been defending its corporate tax rate after the U.S. Senate said on Monday that Apple paid little or no tax on tens of billions of dollars in profits in Irish subsidiaries and that it had negotiated a special corporate tax rate of less than 2 percent. ...

Shell says hunt for new CEO is underway

Tue, 21 May 2013 16:07:00 +0100

By Andrew Callus THE HAGUE (Reuters) - The hunt for Royal Dutch Shell's next chief executive is underway, its chairman said on Tuesday, after CEO Peter Voser made what could be his last appearance at the oil group's annual shareholder meeting. Voser announced his surprise decision three weeks ago to step down in the first half of 2014, before his 56th birthday, and less than five years into the role. "The process has started," Shell chairman Jorma Ollila told Reuters after the meeting when asked about the succession plan. ...

Philip Morris to buy out Carlos Slim's stake in Mexican JV

Tue, 21 May 2013 16:03:02 +0100

(Reuters) - Marlboro maker Philip Morris International Inc said it will buy out billionaire Carlos Slim's Grupo Carso from their Mexican joint venture for about $700 million (462 million pounds). Grupo Carso will sell its 20 percent stake in Philip Morris Mexico in a deal that the U.S. company said would add marginally to its earnings per share in the fourth quarter. Philip Morris said the agreement was subject to final price adjustments based on the Mexican unit's performance over a period of time. ...

Exclusive - EU wants to exclude utilities from U.S. trade talks

Tue, 21 May 2013 15:35:37 +0100

By Ethan Bilby BRUSSELS (Reuters) - The European Union wants to exclude much of the utility sector from a prospective EU-U.S. free trade agreement in order to protect government controlled infrastructure, the latest draft of the EU's mandate for the negotiations showed on Tuesday. Unlike in the United States, many national European electricity grids and power generators are state controlled, and governments fear that a deal supporting the free flow of U.S. companies and money into the sector would erode their influence over assets seen as vital to national infrastructure. ...

Analysis - German households pay for lower industrial power prices

Tue, 21 May 2013 15:24:32 +0100

By Henning Gloystein and Vera Eckert LONDON/FRANKFURT (Reuters) - German households are paying for ever cheaper wholesale power supplies to industry as the government uses money from soaring domestic bills to subsidise renewable energy, in turn creating overcapacity on the country's grid. Chancellor Angela Merkel accelerated the exit from nuclear in 2011, speeding the path towards a power sector that is increasingly dominated by renewables in a move that has been criticised as costly, hasty and damaging. ...

Italy concerned about Fiat Industrial tax move to UK - minister

Tue, 21 May 2013 15:21:08 +0100

ROME (Reuters) - The Italian government is concerned about truck and tractor maker Fiat Industrial's plan to move its tax residence to Britain from Italy, a government minister said on Tuesday. Fiat Industrial will make the move after its planned merger with unit CNH , according to a filing with U.S. regulators. Leaving high-tax Italy is likely to result in a lower tax burden for the new group. "It's a decision that should not only worry us but also stimulate us to create conditions so that companies stay in Italy," said Infrastructure and Transport Minister Maurizio Lupi. ...

UK says on right track as IMF review nears

Tue, 21 May 2013 14:47:06 +0100

LONDON (Reuters) - Britain stood its ground on its approach to fixing the weak economy on Tuesday, a day before the International Monetary Fund is expected to call for a softening of its austerity push. "Our view is that the economy is healing and we are on the right road, but we have to stick to it," a spokesman for Prime Minister David Cameron said. Asked by a reporter at a daily briefing whether the government would change course if the IMF report is critical, the spokesman added: "The government believes it has the right economic approach. ...

EU must make faster progress on banking union - Italy PM Letta

Tue, 21 May 2013 14:40:00 +0100

ROME (Reuters) - The European Union must make much faster progress in creating common supervision and rules for its banking sector, Italian Prime Minister Enrico Letta said on Tuesday the day before an EU summit in Brussels. The lack of progress on banking union over the last year had undermined the credibility of the EU's leaders and was a clear example of the region's inability to follow up "grand announcements" with decisions, Letta told Italy's parliament. "It's not acceptable that the banking union decided a year ago is still lacking any precise form," he said in a speech to the Senate. ...

Ireland says has no special tax deal with Apple

Tue, 21 May 2013 14:35:11 +0100

DUBLIN (Reuters) - Ireland does not have a deal with Apple Inc or any other company to tax their profits at a special 2 percent rate instead of the normal 12.5 percent, Ireland's European Affairs minister told Reuters on Tuesday. Ireland has been defending its corporate tax rate after the U.S. Senate said on Monday that Apple paid little or no tax on tens of billions of dollars in profits in Irish subsidiaries and that Dublin had handed the company a favourable rate. ...

JPMorgan may defeat proposal to split chairman, CEO roles - NYT

Tue, 21 May 2013 14:07:18 +0100

NEW YORK (Reuters) - JPMorgan Chase & Co appears to have defeated a shareholder proposal to split the roles of Chairman and CEO Jamie Dimon, the New York Times reported on Tuesday. The Times, which cited people familiar with a preliminary vote count, said that the final outcome could still change and any margin of victory is still unclear. Dimon and the board have been locked in a contentious battle with some shareholders and proxy advisory firms that want to split his roles, saying it would improve corporate governance. ...

M&S Appoints Frenchman To Top Marketing Job

Tue, 21 May 2013 13:56:16 +0100

Marks & Spencer (M&S), Britain's biggest clothing retailer, is to appoint a Frenchman to spearhead its marketing strategy as it fights to turn around flagging clothing sales.

Royal Mail Float Looms After £440m Profits

Tue, 21 May 2013 13:52:46 +0100

Royal Mail unveiled a big jump in profits to £440m as it took another step towards a possible stock market flotation later this year.

Easing Inflation 'Likely To Be Temporary'

Tue, 21 May 2013 13:21:56 +0100

Plunging fuel and air fare costs helped inflation ease for the first time in six months in April but economists warned the squeeze on earnings is set to intensify again.

Rubber bullets fired at South African mine strikers, several hurt

Tue, 21 May 2013 13:10:26 +0100

By Wendell Roelf CAPE TOWN (Reuters) - Ten striking South African miners were taken to hospital on Tuesday after being hit by rubber bullets, police said, as labour strife swells in mines and factories ahead of mid-year pay negotiations. Auto maker Mercedes-Benz said a two-day wildcat stoppage at its East London plant had ended but the National Union of Metal Workers of South Africa (NUMSA) squashed any relief with an immediate demand for a 20 percent pay rise. "If our demands are not met we will have no option but to go to the streets," NUMSA national treasurer Mphumzi Maqungo told Reuters. ...

Royal Mail profit soars before privatisation

Tue, 21 May 2013 12:25:30 +0100

By Neil Maidment LONDON (Reuters) - Royal Mail more than doubled annual profit on the back of an online shopping boom, providing a timely boost as it plans for a stock market listing this year. In a marked turnaround for a business that has been fighting to adapt to a more competitive market and falling letter volumes, Royal Mail reported adjusted operating profit of 403 million pounds in the year to March 31, against 152 million pounds a year earlier. ...

G4S chief quits after series of embarrassments

Tue, 21 May 2013 12:16:57 +0100

By Christine Murray and Neil Maidment LONDON (Reuters) - G4S, the world's largest security group, is replacing its chief executive after a series of failures including a staffing fiasco at the 2012 London Olympics culminated in a recent profit warning. Nick Buckles, 52, who has led the company for eight years, will be succeeded at the end of the month by Chief Financial Officer Ashley Almanza, a former executive of oil and gas firm BG Group who joined in March. ...

Ten South African miners hospitalised after chrome mine clash

Tue, 21 May 2013 11:29:27 +0100

JOHANNESBURG (Reuters) - Ten striking miners at a chrome mine in South Africa were admitted to hospital after clashes with security guards, police said. "Ten miners were admitted to hospital. They were injured after security guards fired what are reported to be rubber bullets," police spokesman Thulani Ngubane said. He added that officers had arrived at the mine, owned by chemicals group Lanxess , and the situation was under control. (Reporting by Agnieszka Flak; Editing by Ed Cropley)