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Friday Papers: Draghi hints at more stimulus

And International Monetary Fund has demanded EU debt relief for Greece before new bailout.

 
Friday Papers: Draghi hints at more stimulus

Top stories

  • Financial Times: Mario Draghi signalled that the European Central Bank is prepared to launch a fresh round of monetary stimulus as soon as March, bolstering a recovery on US and European equities in the wake of heavy losses this year.
  • The Guardian: The European Union will need to provide significant debt relief for Greece if it is to persuade the International Monetary Fund to put its financial clout behind the country’s third bailout package, the Washington-based organisation has said.
  • Financial Times: Japan’s biggest brewer Asahi and a Thai rival are competing with at least four private equity firms to buy the Peroni, Grolsch and Meantime beer brands from Anheuser-Busch InBev.
  • Financial Times: Barack Obama’s climate change policy has survived a legal test that threatened to freeze his plans, but faces a pivotal court ruling on its future in the final months of his presidency.
  • The Daily Telegraph: Key investment funds have voiced growing support for the planned £47 billion merger of energy giants Shell and BG Group ahead of crucial shareholder votes next week.
  • Daily Mail: Accounting giant KPMG is to face a disciplinary probe over its handling of Halifax Bank of Scotland accounts.
  • Financial Times: Apple boss Tim Cook made a surprise visit to Brussels on Thursday to lobby the EU’s antitrust chief weeks before she is set to rule on a landmark case that could force the California-based technology company to pay billions in underpaid taxes to Ireland.

Business and economics

  • The Independent: BP boss Bob Dudley has told journalists at the World Economic Forum meeting in Davos that the current oil crisis is as bad as the situation in 1986.
  • Daily Mail: Shares in Deutsche Bank fell 3.4% to €17.12 after the giant German bank announced a loss of around £5.1 billion.
  • The Guardian: Jaguar Land Rover has become the biggest carmaker in Britain for the first time, capping a remarkable turnaround for the company after it almost collapsed in 2009.
  • Financial Times: Russia’s rouble hit a new record low of Rbs85.97 to the dollar as policymakers signalled they were prepared to let the currency follow oil lower.
  • The Daily Telegraph: Shoe retailer Brantano has collapsed into administration, putting more than 2,000 jobs at risk.
  • Daily Mail: Hedge funds are taking bets that shares in Royal Dutch Shell and Sainsbury’s will fall further.
  • Financial Times: London-based brewer SABMiller, which is being taken over by Anheuser-Busch InBev, said that lager volumes rose strongly in Africa and Latin America in the final quarter of 2015, compared with the same quarter the previous year.
  • Financial Times: Royal Mail declared it had a “great Christmas” after delivering 6% more parcels in December than one year earlier.
  • The Daily Telegraph: Saudi Arabia has vowed to continue flooding the global market with oil despite the collapse in Brent prices to a 12-year low, insisting that it will not cut output until Russia and other non-Opec countries agree to share the burden.
  • The Daily Telegraph: The wealth manager St James’s Place has brushed off volatile financial markets to bring in record-breaking sums to its savings and investment products.
  • Daily Mail: Troubled educational publisher Pearson plans to slash 10% of its workforce, cap its dividend payout and restructure yet again after predicting weak earnings for 2015 and 2016.
  • The Guardian: Virgin Media is to cut 900 jobs from its UK workforce over the next two years.
  • Financial Times: Two of North America’s biggest rail companies Union Pacific and Canadian Pacific confirmed the gloomy prospects for the sector when they reported fourth-quarter results that sent their shares tumbling.
  • Financial Times: Barclays has told staff it aims to remain a “bulge-bracket investment bank” while outlining plans to cut up to 1,200 jobs by closing many operations in Asia, Russia and Brazil and exiting precious metals trading.
  • Daily Mail: An activist investor is urging change from the board of Peppa Pig maker Entertainment One – and threatening to force a sell-off of the firm.
  • The Guardian: Leading health groups have called on the government to impose a 20% tax on all sugar-sweetened soft drinks to tackle obesity, arguing that current policies are ineffective.
  • Financial Times: With the market for higher risk junk bonds in a state of disarray, private equity firms are finding their most highly leveraged buyouts left hanging by a thread, as big banks become reluctant to lend them money to close the deals.
  • Financial Times: Oil rig builder Keppel Corporation has reported a S$230 million ($160 million) writedown in the fourth quarter on projects connected to the corruption scandal surrounding Petrobras.
  • Financial Times: Amazon is stepping up its investment plans across Europe this year, employing several thousand more staff as it seeks to expand amid stricter scrutiny of its tax, privacy and employment records.
  • Daily Mail: Shares in Mr Kipling maker Premier Foods fell 7.6% despite it shifting 185 million mince pies over Christmas.
  • The Daily Telegraph: Some fund managers struggled to generate income for investors in 2015, with nearly one in five UK equity income funds cutting their dividend payments.
  • The Independent: European carmakers have pleaded for time and understanding after the European Parliament announced a special inquiry into the Volkswagen emissions scandal that erupted last year.
  • The Independent: A multi-million pound deal to support Aberdeen should be signed “as a matter of urgency” to prevent the city’s status as an important hub for the UK’s oil and gas industry being damaged, Nicola Sturgeon has told David Cameron.
  • Financial Times: Monitise, the British mobile payments group, expressed confidence that it would break-even soon but warned that its cash balance would fall further than expected this year as a result of the cost of restructuring.
  • Financial Times: Two GlaxoSmithKline scientists are among five people charged by US federal prosecutors with stealing cancer research secrets potentially worth hundreds of millions of dollars to sell in China.
  • Financial Times: Sky has struck a deal to broadcast Showtime programmes such as Billions and The Affair in its five European markets, as the group beefs up its content line-up in the increasingly competitive pay-television sector.
  • Financial Times: Chemring is tapping shareholders for £80.8 million as the UK defence company on Thursday pledged to return to profit this year after a disappointing 2015 in which its pre-tax loss rose to £9.1 million.
  • The Guardian: George Osborne has issued a call for international action to bolster growth in the face of a “hazardous mix” of risks to the global economy.
  • The Guardian: Italy’s beleaguered banking sector has been boosted after the European Central Bank and the Italian prime minister sent soothing messages to anxious investors.

Share tips, comment and bids

  • Financial Times: Struggling electronics group Sharp has become the object of a bidding war between Taiwan’s Hon Hai Precision Industry and a Japanese state-backed fund.
  • Financial Times: UniCredit has offered to buy back €1.8 billion in junior debt from retail investors, in a move timed to calm markets after the sharp sell-off in Italian banking securities that has hit the Milan-based bank and some of its rivals in recent days.
  • The Daily Telegraph: Aviva is expanding its reach in North America by spending £281 million on a home and car insurance business currently owned by Royal Bank of Canada.
  • Financial Times: Broadspectrum, an Australian outsourcing and construction services company, has rejected a second hostile takeover offer worth A$715 million (US$495 million) from Spanish infrastructure group Ferrovial.
  • The Guardian (Comment): JP Morgan's threat to leave if UK quits EU may bolster support for Brexit.
  • Financial Times (Comment): Oil contagion prompts Japan sell-off.
  • Financial Times (Lex): Bulk carriers: investors seeking the bottom on bulker shares should bring scuba gear.
  • Financial Times (Lex): Nintendo: the game maker’s shares have overshot, again.
  • Financial Times (Lex): State assets: government does not sell assets for the same reason as investors.
  • Financial Times (Lex): Deutsche Bank: lender was too slow to act; it must use the current crisis now.
  • Financial Times (Lex): Twitter: News Corp bid talk may have been wide of the mark but Alphabet could be a buyer.

1 comment so far. Why not have your say?

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Jan 22, 2016 at 09:37

What is the realist`ic price per barrel of oil 10$ or 50$ dollars most countries have some oil deposits so there will be no shortage of oil for many years to come the labour goverment when in power stood back and let the oil price go sky high as did many goverments at that time .when labour was in power at that time .the seeds of what they sown is still ingrained into this economy .with continual price increases .the lower price of oil seems to give a clear signal to goverments .what it says is .Listen Look .reign back try to keep rents and interest rates within reason .i hope that the price per litre of fuel comes down to 80p pence a litre for a t least two years that will help everyone .

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