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Friday Papers: £140bn scheme to kick-start stagnant economy

George Osborne plan involves BoE offering money to high-street banks to kick-start mortgage and small business lending.

 
Friday Papers: £140bn scheme to kick-start stagnant economy

Top stories

  • The Daily Telegraph: George Osborne unveiled a £140 billion emergency scheme to try to avoid a second credit crunch caused by the ongoing chaos in the eurozone; Chancellor's scheme involves BoE offering money to high-street banks to kick-start mortgage and small business lending.
  • The Daily Telegraph: Banks across Europe urgently need a "major recapitalisation" to rebuild their solvency buffers, help ease the eurozone crisis, and kick-start the recovery, Sir Mervyn King, Governor of the Bank of England, said.
  • The Guardian (Comment): Speeches by the chancellor and Bank of England governor show they fear for UK economy as eurozone crisis comes to a head.
  • Financial Times: Egypt’s military rulers seized broad powers after the supreme constitutional court dissolved the country’s first democratically elected parliament yesterday.
  • The Guardian: Nokia announced 10,000 job cuts on Thursday and issued its second profits warning in nine weeks.
  • Financial Times: Institutional money managers have emerged as unlikely beneficiaries of a subsidised safety net for US farmers set for expansion by Washington.
  • The Daily Telegraph: The French and Italian leaders warned more must be done to fight the eurozone debt crisis, in a show of unity which marks a growing Latin revolt against the austerity advocated by Germany.
  • The Daily Telegraph: Allen Stanford, the Texan financier, has been sentenced to 110 years in prison for orchestrating a $7 billion Ponzi scheme.

Business and economics

  • The Daily Telegraph: Unilever has put forward plans to close three plants and an office in the UK, with the loss of up to 800 jobs, while also investing £40 million in its biggest factory.
  • Financial Times: The Federal Reserve has been repaid for loans it made during the financial crisis to help rescue Bear Stearns and American International Group, closing a chapter on the central bank’s controversial intervention.
  • The Daily Telegraph: BSkyB and BT have been yellow-carded by investors after jointly committing to pay £3 billion to screen Premier League football - decisions that wiped a total of £974 million off their market values on Thursday.
  • The Independent: IG Group, the biggest spread-betting house, yesterday reported a 17% rise in year-end revenues to £367 million.
  • Daily Mail: Britain is facing 'an escalating housing crisis' because property prices are beyond the reach of prospective first-time buyers, the study by the Joseph Rowntree Foundation warned.
  • The Independent: PZ Cussons, maker of Imperial Leather soap, has warned of weak sales in Greece and Nigeria.
  • The Daily Telegraph: The number of Americans applying for unemployment benefits has unexpectedly risen, suggesting persistent weakness in the US labour market.
  • The Independent: The Office of Fair Trading's new boss, Clive Maxwell, will take up the reins of the trading watchdog on less than half the salary of his predecessor, it emerged yesterday.
  • The Guardian: Indonesian mining company Bumi, founded by financier Nat Rothschild, was on Thursday accused of human rights abuses at a heated annual general meeting.
  • The Daily Telegraph: Switzerland's central bank warned it is determined to stop its "safe-haven" currency from rising further amid the eurozone turmoil, hinting at capital controls.
  • The Independent: The Swiss central bank has called on Credit Suisse to stage a "marked increase" its capital levels this year in preparation for the potential worsening of the eurozone crisis.
  • Financial Times: Allied Irish Banks has announced plans to slash executive and management pay, freeze staff salaries and switch employees from its existing defined benefit pension scheme to cut costs.
  • The Independent: Spain's 10-year borrowing costs breached 7% yesterday, the highest level since the formation of the single currency, while the flames of the eurozone crisis spread closer to Italy.
  • Financial Times: Atkins, the engineering consultancy that helped to design and deliver the London Olympics, is planning to focus on overseas markets such as Asia and America where higher infrastructure spend offers more growth potential than the UK.
  • Financial Times: The bankruptcy trustee charged with recouping the $1.6 billion still owed to customers of MF Global, the failed broker-dealer, said he would receive $130 million from CME Group.
  • The Independent: WH Smith has again cheered investors by delivering growth in margins and an improved sales performance despite the dire trading conditions on the high street.
  • Financial Times: US financial institutions and junk-rated borrowers may struggle to refinance nearly $3 trillion in debt set to mature by the end of 2016 as global volatility threatens demand for risk assets, Standard & Poor’s warned on Thursday.
  • The Independent: The not-for-profit company Welsh Water unveiled plans yesterday to spend £1 billion on infrastructure and renewable energy over the next three years, creating around 1,500 construction jobs.
  • Financial Times: The decision by Aquarius Platinum, the world’s fourth-largest platinum producer by volume, to mothball a mine in South Africa jointly owned with Anglo Platinum supported sentiment in the platinum market, where prices have rallied 5% since the start of the month.
  • Financial Times: Opec agreed to keep its production ceiling unchanged on Thursday, though analysts still expect Saudi Arabia and its Gulf allies to cut output if oil prices continue to fall.
  • Financial Times: Wincanton, the logistics provider, will gain market share over its current financial year, its finance director has predicted after publishing results for the year to 31 March showing a £47.4 million pre-tax loss as a result of restructuring.
  • Financial Times: Jefferies, the New-York based investment bank, will take the place of Morgan Stanley on the initial public offering of Manchester United, if the Glazer family, the football club’s owners, as expected shift the offering from Asia to the US.
  • Financial Times: Coca-Cola is planning to begin doing business in Myanmar.
  • Financial Times: Statoil has moved a step closer to natural gas production off the coast of Tanzania after the Norwegian energy group made its second major discovery in the area since February.

Share tips, comment and bids

  • Financial Times: Brazil’s BTG Pactual has strengthened its position as a pan-Latin American investment bank with the purchase of Bolsa y Renta, a Colombian brokerage.
  • The Daily Telegraph: Falkland Islands Holdings plans to raise up to £10 million to prepare for a potential oil boom in the South Atlantic.
  • Financial Times: Royal Dutch Shell has effectively kept its options open for raising its bid for east African gas explorer Cove Energy by extending the deadline until 27 June for acceptances for its spurned £1.12 billion, or 220p-a-share, bid.
  • Financial Times: Unhappy shareholders in Plus Markets Group say they will vote against ICAP’s offer for the company’s stock exchange business on Monday.
  • Financial Times: The family of Mexican tycoon Carlos Slim has bought an 8.4% stake in newly nationalised Argentine oil company YPF.
  • The Independent: The general merchandise retailer Wilkinson has withdrawn from the bidding for the hardware chain Robert Dyas, which could be sold for up to £15 million.
  • The Guardian: Mexican regulators have decided to allow national television giant Televisa to buy half of Iusacell, a small mobile phone company owned by its only significant competitor in the TV market, Grupo Salinas, the holding company of TV Azteca.
  • The Guardian: Tesco has bought We7, the internet radio station co-founded by Peter Gabriel, for £10.8 million as it bolsters its internet offer with movie and music streaming services.
  • The Guardian: Global Radio is close to securing a £50 million deal for Guardian Media Group's radio business, which includes the Real Radio and Smooth Radio networks, which could lead to its rivals lodging complaints with the competition regulator.
  • The Daily Telegraph (Comment): Last night's announcement of £140 billion in cheap funding for banks is fundamentally an acknowledgment of the storm to come ahead of a deepening eurozone crisis. This is a lifeboat worth nearly 10% of GDP. Things really are that bad.
  • The Daily Telegraph (Comment): The devil is always in the detail, but on the face of it, news of an extra £140 billion of cheap funding for the banks - worth close on 10pc of annual GDP - comes in the nick of time.
  • The Daily Telegraph (Comment): Spain's borrowing costs have surged to record highs and are perilously close to the point of no return, threatening a full-blown sovereign crisis unless the European Central Bank comes to the rescue.
  • The Guardian (Editorial): Euroland has finally entered the twilight zone: an extraordinary, frightening situation has been visited upon ordinary folk in 17 countries, who now await a dreadfully macabre twist.
  • The Independent (share tip): Hold WPP
  • Financial Times (Editorial): Sooner than one might have expected, François Hollande’s election has shifted the tactical balance in eurozone politics away from Berlin.
  • Financial Times (Lex): FedEx: the group looks to be in a weak position but has carved out profitable niches focused on express air networks connecting Europe with Asia and the US.
  • Financial Times (Lex): UK bank reforms: the Treasury has understood that personal and business banking should sit inside the fence but there is no guarantee the proposals will work.
  • Financial Times (Lex): Nokia: a significant overhaul that changes nothing in terms of overall strategy, and that must remain the overriding concern for investors.
  • Financial Times (Lombard): New bank rules threaten to export financial repression.

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Friday Papers: Aer Lingus rejects bid from IAG

by Himanshu Singh on Dec 19, 2014 at 02:46

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