Business news and markets: as it happened, September 10, 2013 Markets in the UK and Europe are performing one of their rapid turnarounds in sentiment today, helped by better China data and the news on Syria. The German Dax has pushed back above 8400, although it is now running slap into the resistance around 8450 that prevented further progress throughout August. The FTSE 100 is knocking on the door of 6600 for the first time since mid-August, as investors look to make gains before the crucial Fed meeting next week. Hospitality giant Whitbread is failing to participate however, as it succumbs to profit-taking; given the steady progression that has carried the shares higher for almost two years now it would not be surprising to see the price challenge the all-time highs around £33 per share in short order. 16.47 European markets have closed. The FTSE 100 finished up 1pc at 6,595.23, while the CAC 40 in Paris closed up almost 2pc at 4,118.24. The DAX 30 in Frankfurt closed up 2pc at 8,446.54. 16.19 London's most expensive luxury development probably isn't the first place you'd think of when you hear a house has been clawed back by the bank, but One Hyde Park has seen its first repossession. A £5.25m one bedroom "entry level" flat at the Candy brothers' development (pictured, below) is being offered for sale by receivers. Agents Strutt & Parker told London's prime property agents: "We are now appointed by the Receivers to find a buyer quickly for the property and hope that one of your buyers may benefit from being able to move quickly?" 16.02 Blind army veterans are among those who will benefit from multi-million pound fines paid by banks over a rate-rigging scandal. A total of 16 military good-causes are to benefit from a £2.5m fund set up from penalties levied on banks over the manipulation of Libor, or the London inter-bank lending rate, according to the Treasury. It is the latest tranche of cash to be dispensed from the £35m pot, bringing the total given to 49 charities to £9m. The remaining funds will be allocated over the next two years. Cruse Bereavement Care is to receive £518,810 to develop support services for military families, while Royal British Legion Industries, is in line for £241,000 grant to help partners of armed forces personnel to develop job skills. 15.59 Mr Asmussen also said that the ECB stood ready to loosen monetary policy further. "The ECB remains ready to act if conditions deteriorate," he said. 15.46 Fed tapering could create a global shockwave larger than the bond market crash seen in 1994, according to European Central Bank (ECB) rate-setter Joerg Asmussen. The Federal Reserve in America is expected to start slowly reducing its bond purchases when it meets later this month, but Mr Asmussen said any spillover effects in today's "deeply interconnected world" would create even larger ripples in the global financial system. Drawing comparisons with the past, he said: In early 1994, when the U.S. recovery gained strength, the Fed started a tightening cycle and bond markets crashed not only in the U.S. but also around the world. If spillovers were large in 1994, we can expect them to be even larger today in an even more deeply interconnected world. 15.21 Goldman Sachs, Nike and Visa are to join the Dow's group of 30 biggest US companies, replacing Bank of America, Hewlett-Packard and aluminium maker Alcoa. The shake-up - the biggest since 2004 - was "prompted by the low stock price of the three companies slated for removal and the Index Committee's desire to diversify the sector and industry group representation of the index," Dow Jones said in a statement. 15.04 US markets are open for business. The Dow Jones industrial average opened up 0.6pc at 15,150.12, while the broader S&P 500 is up 0.5pc at 1,680.47. 14.46 Lord Mervyn King of Lothbury, the former Governor of the Bank of England, launched an attack on the proposed FTT in May, claiming that there is "enormous scepticism" about the levy even among the countries signed up to it. I can understand why some politicians feel reluctant to express their true scepticism about this idea in public, but I can assure you I do hear an enormous scepticism even from quarters which are alleged to be behind it. 14.31 Plans to introduce a financial transactions tax (FTT) in 2014 are illegal, EU lawyers have concluded. The findings, presented by Brussels' legal services team, stated that the plan, which would introduce a levy of financial transactions in 11 EU member states, "exceeds member states' jurisdiction for taxation under the norms of international customary law." The 14-page legal opinion, seen by Reuters, said the FTT was not compatible with the EU treaty "as it infringes upon the taxing competences of non participating member states," while introducing it only in some member states would also be "discriminatory and likely to lead to distortion of competition to the detriment of non participating member states." While the lawyers' findings are not binding, it will make FTT plans harder to introduce in their current form. Germany, France, Italy, Spain, Austria, Portugal, Belgium, Estonia, Greece, Slovakia and Slovenia were planning to adopt the tax on stocks, bonds, derivatives, repurchase agreements and securities lending. 14.15 Do you think plastic notes should be introduced? Vote in our poll: Britain's wallets and purses may be stuffed with plastic cash in future, under plans by the Bank of England to switch banknotes from cotton pulp to polymer. Philip Aldrick reports: The central bank has begun a two-month public consultation on the move and expects to make a final decision in December, but has already set out a compelling case for plastic. It is harder to counterfeit, more durable, more environmentally friendly, and cheaper, the Bank said. Focus group studies conducted by the Bank suggested the public was ready for the change, but that they had reservations. Plastic banknotes can not be folded, and concerns were expressed about their "slipperiness." They also "begin to shrink and melt at temperatures above 120°, so they can be damaged by ironing for example," the Bank warned. On the other hand, they are waterproof and last at least 2.5 times longer than "paper" money, which is actually made of cotton pulp combined with "linen and other plant fibres." Although polymer notes are more expensive and less environmentally friendly to produce in the first instance, their durability makes them cheaper and more ecologically sound over longer periods. The new Sir Winston Churchill £5 bank note could be the first to be printed on polymer (Copyright: Bank of England). 13.52 European markets surging higher on the back of positive data out of China and Syria's comments that it will hand over its chemical weapons, thereby averting a US strike. UK have stocks advanced to their highest level in more than three weeks, with the FTSE 100 is up 0.86pc to 6,586.89. In Germany the Dax is up 1.86pc In France the Cac is up 1.67pc In Spain the Ibex is up 1.63pc In Italy the FTSE Mib is up 0.69pc 13.30 Over in France trade unions are striking pension reforms. Hardline unions led by the CGT called for rallies and work stoppages in 180 locations across France where workers, civil servants and students will march to voice their anger over the reform and a wave of belt-tightening measures. Hollande's reform, which is to be debated by parliament in the next month, aims to wipe out an annual deficit that will otherwise hit 20 billion euros ($26.5 billion) in 2010. Its main effect is to extend the pay-in period for pension contributions to 43 years by 2035 from 41.5 now. Previous efforts at pension reform in 1995 and 2010 led to major upheavals with mass protests and damaging strikes, but a similar reaction is unlikely this time Workers of the private sector and public services demonstrate through the streets of Marseille People march as part of a nationwide day of protest against the government's plans to reform France's debt-ridden pension system The slogan reads "Let's defend pension system." 12.56 Ishaq Siddiqi, market strategist at ETX Capital, says at the current 10-year gilt yield, markets are pricing in a rate hike in the UK in late 2015. He says markets are unconvinced by Mark Carney's plan, with yields "completely undermining" his forward guidance. But it is not just the expected tick down of the unemployment rate from 7.8pc to 7.7pc tomorrow that is driving yields higher, it is the "general optimism" surrounding the UK economy, Siddiqi says. The yields were already elevated having hit 3pc last week, so any more good news will only push them further. And there was further good news this morning in the form of a Rics survey. The UK house-price gauge rose in August to the highest since November 2006 as the economic recovery gathered pace and government measures boosted demand. A "renaissance" in the British car industry is also driving sentiment, with the announcement this morning from Jaguar Land Rover that it would create 1,700 jobs at its Birmingham factory. The UK is now producing premium, niche, high-end cars which is positive for the UK. Car sales are being boosted by the fact that a lot of foreign car makers are investing in the UK. Jaguar is creating jobs, Nissan has already pumped money in and other car makers are doing it. The UK car industry is going through a renaissance. As long as the global economy continues to recover then there will be more propensity to buy more premium cars. 12.32 UK 10-year gilt yields are back above 3pc for the second time in a week, ahead of UK unemployment figures out tomorrow which many expect to show that the unemployment rate is ticking down. Yields are up 2.3pc today to 3.023pc. If this is the case it will put more pressure on Bank Governor Mark Carney as markets increasingly believe that he will not be able to hold on until 2016 before raising the bank rate from its record low of 0.5pc. 10-year UK gilt yields since July 2011. 12.11 More corporate news - a court has ruled in favour of Kurdistan-focused explorer Gulf Keystone in a case over its ownership of giant oil fields, removing a legal shadow hanging over the company and making it a more attractive to potential suitors. Announcing his ruling to a packed London courtroom, the judge on Tuesday dismissed claims made by Exalibur Ventures that it was entitled to a 30pc share in the company's oil fields, bringing to a close almost three years of legal wranglings. Excalibur, which said it helped introduce Gulf Keystone to the opportunity in Kurdistan, began legal action in 2010. Excalibur's case was made against Gulf Keystone and Texas Keystone, a company founded by Gulf Keystone Chief Executive Todd Kozel, which holds a small interest in the Shaikan field in trust for Gulf Keystone. The judge, Christopher Clarke said: It (Excalibur) has accordingly no valid claim against either Texas or Gulf to an interest in that (Shaikan) or any other PSC (production sharing contract). Excalibur, a two-man company which said it helped introduce Gulf Keystone to the opportunity in Kurdistan, began legal action in 2010. 11.44 That rumour that does the rounds every couple of weeks that today will be the today that the government announces the sale of its 39pc stake in Lloyds is floating around again. Fuelling the speculation is that the Lloyds share price is at its highest level since December 2008 at 78.15p. Lloyds share price since December 2008. 11.35 The Telegraph's personal finance desk has done the full story on Wheatley's statement today on PPI mis-selling after the head of the City regulator disclosed that two investigations into PPI complaint mis-handling are under way. Two banks face fines for fobbing off an "outrageous" proportion of PPI complaints, the head of the City regulator disclosed today. 11.22 Back in the stock market, GlaxoSmithKline is down 3.4pc, the heaviest faller in the blue-chip index, after a draft document from the US Food and Drug Administration raised fears about generic competition to the group's Advair lung treatment. Whitbread has shed 2.7pc on weaker than expected sales growth at its Costa Coffee chain during the second quarter. 11.09 Last question is on the Retail Distribution Review which came in on January 1 to improve financial advice - advisors had to be qualified to a certain level, commission from products back to the advisers - which can lead to product bias - was removed and advice is now paid for upfront, instead of by commission. How successful has it been so far? Wheatley says the removable of product bias has been a "big success," but he says there are some issues with those with smaller portfolios (below £50,000-£100,000) no longer receiving advice as it is not economically viable.