Morning Business News, Wednesday 20 January: Credit Suisse, RBS, UK Inflation, Visa and Google.

RBS (LON:RBS) is proving a headache for the Government over its bonus payments.

A global clampdown on bankers' bonuses is piling pressure on the Government to curb a £1.5billion bonanza at RBS.

A public outcry over fat-cat pay is forcing international banks and some countries to reconsider the end-of-year bonuses which are due in the next few weeks.

RBS, which is 84 per cent owned by the taxpayer, is expected to pay up to £85,000 to each of its 17,500 staff at its investment bank after profits at the division soared last year, the Mail reports.

Credit Suisse Group bankers in bonus cuts

Contrast the issues at RBS with the reality at Credit Suisse:

Senior UK investment bankers at Credit Suisse Group AG (NYSE:CS) will bear the brunt of the Chancellor’s controversial bonus tax this year.

The bank’s 400 managing directors in London will be affected, as their bonuses will be slashed by 30%. In addition, the bank is cutting its total compensation pool for 2009 by 5%, the Times reports.

UK Inflation

UK inflation jumped the most on record in December, fuelling fears that interest rates will have to rise sooner rather than later to keep prices in check.

The sharp rise in the annual rate of consumer price inflation from 1.9% to 2.9% was driven by exceptional events in December 2008, as the VAT cut and high street discounting at that point were not repeated last month, the Telegraph reports.

Visa contactless debit cards

Contactless debit cards will become commonplace in Britain this year as banks double the number in circulation to about 10m, according to Visa.

Speaking as the payments group unveiled its annual results, Peter Ayliffe, chief executive of Visa Europe, said 2010 would be “the tipping point” when the British consumer finally adopts the new technology, which it hopes will replace cash for small purchases, the Telegraph reports.

Google China

Google has taken its first concrete step out of China, postponing the launch of two mobile phones produced specifically for the Chinese market.

The two handsets had been developed in partnership with the manufacturers Samsung Electronics and Motorola and were due to be unveiled tomorrow in a deal with the Chinese mobile phone carrier China Unicom. The postponement follows the internet giant’s threats to close its Google.cn search engine in China unless the Government eases censorship rules, the Times reports.