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Friday Papers: Oil nations face years of pain, says IMF

And the US dollar has suffered one of the sharpest drops in 20 years as the Federal Reserve signals a retreat from monetary tightening.  

Friday Papers: Oil nations face years of pain, says IMF

Top stories

  • The Daily Telegraph: Oil-producing nations face years of pain as prices remain lower for longer, the managing director of the International Monetary Fund Christine Lagarde has warned.
  • The Daily Telegraph: The US dollar has suffered one of the sharpest drops in 20 years as the Federal Reserve signals a retreat from monetary tightening, igniting a powerful rally for commodities and easing a ferocious squeeze on dollar debtors in China and emerging markets.
  • The Guardian: George Osborne’s claim that the government secured a major corporation tax deal with Google appear to be unravelling after it emerged that a quarter of the £130 million recovered by HM Revenue & Customs related to the US company’s share options scheme.
  • Financial Times: Credit Suisse shares tumbled to a 24-year low on Thursday as the Swiss bank’s first full-year loss since 2008 brought home the pain market volatility, subdued global growth and low or negative interest rates are inflicting on global finance.
  • Financial Times: ConocoPhillips has become the first large US oil production company to cut its dividend in response to the decline in oil prices, announcing a 66% reduction as it attempts to shore up its finances.
  • The Daily Telegraph: Hasbro has held talks with Mattel about a merger that would create one of the largest toy makers in the world, according to reports.
  • Financial Times: The UK’s largest charity for the elderly has made millions of pounds in the past year by promoting energy, insurance and funeral care plans to pensioners, triggering accusations that the organisation has put profits before people.
  • Financial Times: Leon Black, chairman of the US private equity firm Apollo, has been named as the mystery buyer of a $106 million Pablo Picasso sculpture being fought over in a New York court between art dealer Larry Gagosian and the Qatari royal family.
  • The Guardian: The prospect of a UK interest rate rise has receded further after the Bank of England cut its forecasts for growth, wages and inflation; however, the governor, Mark Carney, warned borrowers against getting too comfortable with rock-bottom rates.
  • The Daily Express: Some of Europe's biggest banks are on the brink for a crisis that echoes the 2008 meltdown, a finance expert warned yesterday, as fears over the global economy escalate.

Business and economics

  • Daily Mail: Mining stocks charged ahead yesterday led by Anglo American which posted its biggest ever one-day percentage gain during trading.
  • The Daily Telegraph: The pound could lose a fifth of its value if the UK votes to leave the European Union, Goldman Sachs has warned.
  • Financial Times: Paris prosecutors have launched a formal investigation into whether Najib Razak, Malaysia’s prime minister, was paid bribes over a long-contentious $1.2 billion arms deal when he was defence minister.
  • The Guardian: The boss of one of Britain’s biggest housebuilders, who is heading a Labour-backed review into the country’s housing crisis, has warned he is concerned about the rapid rise in house prices.
  • Financial Times: IEX, the upstart stock-dealing venue, is taking an “un-American” approach to slowing down high-speed traders, the owner of the New York Stock Exchange has charged in comments that will further inflame debate over markets.
  • Financial Times: Smith & Nephew says it has proved it can prosper in the shadow of bigger rivals such as Johnson & Johnson and Stryker and stands to benefit from upheaval among its competitors.
  • Financial Times: ING defied the gloomy European banking market with promises of higher dividends and fourth-quarter earnings that beat expectations pushing its shares rose more than 10%.
  • Financial Times: Insurer Beazley is to move its head office back to London just seven years after relocating it to Dublin, taking advantage of tax changes that have removed disparities between the UK and Ireland.
  • Financial Times: Algorithmic and high-frequency traders will be captured by an accountability regime as part of a push by the UK financial watchdog to extend rules across wholesale markets.
  • The Guardian: Hackers in China attempted to access more than 20 million active accounts on Alibaba Group Holding Ltd’s Taobao e-commerce website using Alibaba’s own cloud computing service, according to a state media report posted on the internet regulator’s website.
  • Daily Mail: Tata Steel plunged to a loss as it blamed cheap imports from China and a string of EU failures for disappointing trading.
  • The Daily Telegraph: Clydesdale Bank’s deposit rating has been cut by ratings agency Moody’s over fears the bank could represent a bigger risk now that it has been sold off by its parent National Australia Bank.
  • The Daily Telegraph: Standard & Poor’s has cut Glencore’s investment rating to one level above junk.
  • Financial Times: Norway’s $810 billion oil fund has revealed that it voted against proposals from some of the world’s biggest companies - including Apple, General Electric and JP Morgan - as it stepped up its push for more responsible investing.
  • Financial Times: The global oil market will rebalance later this year, paving the way for a recovery in crude prices from their lowest level in more than a decade, Royal Dutch Shell’s chief executive said.
  • Financial Times: AstraZeneca has urged investors to keep focused on long-term growth after its shares were sent tumbling by a warning of lower earnings this year.
  • The Guardian: Volkswagen sales fell sharply in the UK in January following a customer backlash over the diesel emissions scandal that has rocked the German carmaker.
  • Financial Times: Daimler has forecast slowing growth in 2016 after record sales of Mercedes-Benz cars powered the German company to its highest ever full-year revenues and earnings.
  • Daily Mail: Ford has revealed plans to trim its workforce in Europe under plans to save the carmaker $200 million a year.
  • The Independent: The number of pubs fell by 1,444 in the UK in 2015 despite an overall decline in pub closures, according to the Campaign for Real Ale (Camra).
  • The Guardian: Pharmaceutical entrepreneur Martin Shkreli threw insults at the US Congress, less than an hour after refusing to testify at a hearing investigating accusations of profiteering on life-saving drugs sold by his and other drug companies.

Share tips, comment and bids

  • Financial Times: Taiwan’s Hon Hai Precision Industry has emerged as a surprise frontrunner in the takeover battle over Sharp that has pitted the Apple supplier against a Japanese state-backed fund.
  • Financial Times: Mohammed Alabbar, chairman of Dubai developer Emaar, is leading a consortium of Gulf investors seeking to acquire the food packaging and restaurant franchise business Americana from the Kuwaiti Khorafi family.
  • Financial Times: Nyrstar, the world’s largest producer of zinc, is ending its agreement to supply Noble Group one year early - dealing another a blow to the embattled commodities trader.
  • Financial Times: Beijing Enterprises has bought a German waste management company for €1.44 billion, in the largest ever Chinese acquisition of a German business.
  • The Daily Telegraph: Private equity house Dunedin has bought an £80 million stake in Alpha, consultants to top financial services firms including Axa and Barclays Wealth.
  • The Guardian: Rangers has moved to end its turbulent commercial relationship with Sports Direct after the football club saw off a legal challenge from the retail chain.
  • Financial Times (Lex): Activist investors: J&J is too tough a target for activists. How about Novartis?
  • Financial Times (Lex): Credit Suisse: investors who supported the rights issue have already lost a fifth.
  • Financial Times (Lex): Bank break-ups: investors are calling for restructuring of CIT.
  • Financial Times (Lex): GoPro: camera maker is not yet heading for the knacker’s yard.
  • Financial Times (Lex): Commodities: miners’ big write-offs are no cause to celebrate.
  • The Independent (Comment): EU referendum: How much would Brexit cost us?

2 comments so far. Why not have your say?

alan franklin

Feb 05, 2016 at 08:41

"The pound could lose a fifth of its value if the UK votes to leave the European Union, Goldman Sachs has warned. " The "Great Vampire Squid wrapped round the face of humanity" that is this self-centred company is not an impartial commentator. They are piling money into the campaign to keep Britain in the sleazy shambles that is the EU - where countries sign up to lose their independence.

Whatever is good for the fat to bursting cats who run G-S is almost certainly bad for the rest of us. If you want the world ruled by their like, with tentacles stretching all through politics in the UK and USA, follow their advice.

By the way, how much tax do they pay over here?

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Feb 05, 2016 at 08:51

Years of pain for oil producing nations .these nations are years away from living on jam and bread .increased oil prices have decimated some peoples incomes due to the need to buy fuel for their cars to go to work drive the kids to school the very young children that are going to school for the first time .the mothers need the car to look after their children in safety .many very junior schools have been closed where i live and the land sold to build houses .leaving mothers no option to drive two miles to take their kids to school .a distance that is too far to walk .for very young children.the added cost to have a car further cuts into the family`s income .the present cost of fuel per gallon is still too high and needs to drop further .our small village has become desperate with all the very small parcels of land now built on getting in and out of our small village town has become so bad congestion on the roads has turned our village town into a near permanent locked in eyesore the only roads in and out are only old coaching roads .which was poor years ago but know a council blunder .

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