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Monday Papers: Bleak jobs outlook raises heat on Fed

And a government-sponsored review into equities calls for simpler share buying.

 
Monday Papers: Bleak jobs outlook raises heat on Fed

Top stories

  • Financial Times: The US will make little progress tackling high unemployment before 2014 unless the Federal Reserve eases policy further, one of the central bank’s leading officials has warned.
  • Financial Times: The stock market needs to move closer to simpler times by cutting the number of go-betweens that divide investors and companies, the Kay Review, a government-sponsored review into equities will say on Monday.
  • Financial Times: Barclays has decided to search for its next chairman from outside the bank after a shareholder revolt against the proposed appointment of board member Sir Michael Rake.
  • Daily Mail: Analysts expect Friday’s interim figures from Barclays will show first-half underlying profits up 10% to £4.1 billion, while half-year profits at Lloyds are expected to be broadly flat at £1 billion.
  • The Guardian: The Financial Services Authority is to summon the management of Britain's biggest banks to a meeting to discuss relaxing rules that are being blamed for holding back economic growth by impeding lending to businesses.
  • Financial Times: Eurozone banks have retreated dramatically from the US over the five years since the financial crisis began, cutting their assets in the country by more than a third.
  • The Daily Telegraph: Greece is in a "Great Depression" similar to the American one in the 1930s, the country's Prime Minister Antonis Samaras told former US President Bill Clinton on Sunday.
  • The Independent: The US group that led construction of the Olympic Park and a New York-listed rival are the latest companies considering bids to oversee the UK's £5 billion nuclear decommissioning programme.
  • Financial Times: Jack Reed, Democrat from Rhode Island, and Chuck Grassley, Republican from Iowa, want the Securities and Exchange Commission to be able to levy fines equal to the amount of investor losses in the most serious fraud cases.
  • Financial Times: Rupert Murdoch has stepped down from the boards of all of News Corp’s UK newspaper businesses, symbolically distancing himself from the Fleet Street empire he began when he bought the News of the World and The Sun in 1969.
  • The Independent: Unilever will reveal that conditions in Europe continue to be tough in its second-quarter results on Thursday; but its dividend could rise by as much 8%.

Business and economics

  • The Daily Telegraph: The tax office is to investigate the British recruitment industry following allegations that hundreds of agencies are running multi-million pound "tax avoidance" schemes.
  • Financial Times: Estimates of revenue growth for the largest US companies are being scaled back sharply by Wall Street analysts, signalling a mounting risk that the world’s largest economy may enter recession later this year.
  • Financial Times: The US is turning to Brazil for help with corn supplies as low stocks and the worst drought in half a century haunt the world’s leading grain exporter.
  • The Independent: Analysts have rushed to downgrade ITV forecasts as it became apparent that many advertisers have decided to pull spending rather than compete with brands that are Olympic sponsors.
  • The Guardian: British Gas faces renewed pressure over alleged profiteering amid City predictions that the company will reveal this week that it made £100 million in extra profits in the first six months of the year.
  • Daily Mail: Centrica’s six month pre-tax profit is predicted to rise by 19% to £1.26 billion when it posts its results this week.
  • Financial Times: Nokia is considering ripping up its traditional mass marketing strategy when it unveils its new Windows 8 smartphone in the autumn.
  • Financial Times: Sir Stelios Haji-Ioannou, easyJet’s founder, has written to shareholders urging them to oust Sir Michael Rake, the airline’s chairman.
  • The Daily Telegraph: Kentucky Fried Chicken is moving from serving burgers to bachelors of arts with the launch of what is thought to be the first corporate degree course.
  • Financial Times: One-seventh of the £41.4 billion paid to shareholders in dividends from UK-listed companies in the first half of this year came in the form of special payouts, according to a study by Capita Registrars.
  • Daily Mail: Property giant Hammerson could this week kick-start plans to overhaul the Brent Cross shopping centre in North London to take on rival Westfield.
  • Financial Times: Maurice Lévy, chairman and chief executive of Publicis, is preparing for the appointment of his successor this September.

Share tips, comment and bids

  • The Daily Telegraph: Lloyds Banking Group faces the indignity of another cut price sell off as buyers walk away from its £1.2 billion Project Lundy auction.
  • Financial Times: NRG Energy, the US energy producer, said on Sunday it would acquire GenOn Energy in a stock deal valued at $1.7 billion.
  • The Daily Telegraph: HSBC is facing legal proceedings in the US over the sale of property in Northern Cyprus.
  • Financial Times: Sony Music and Warner Music risk being shut out of the bidding for assets that Universal Music plans to sacrifice to get its £1.2 billion bid for EMI past regulators.
  • The Daily Telegraph: King.com, Britain's answer to Angry Birds producer Zynga, is planning to make an initial public offering on Nasdaq next year.
  • The Guardian (Comment): As global corporations continue to usurp democracy, the left must make more noise and force our leaders to take risks.
  • The Daily Telegraph (Comment): The new Spanish government of Mariano Rajoy has squandered the advantages of its absolute majority in a matter of months, and completely lost the confidence of Europe's institutions.
  • The Daily Telegraph (Comment): Forget debt, it's time for companies to use equity to drive investment.
  • Daily Mail (Comment): It’s good for growth, good for the public, and in urgent need of investment – you’d be forgiven for thinking that putting money into infrastructure is a no-brainer for the government.
  • Financial Times (Lex): Slovenia: a failure by politicians to agree reform measures in the face of overwhelming need nudges the country closer towards a bailout.
  • Financial Times (Lex): Withholding tax: China’s decision to halve the rate is a welcome move in a welcome global trend to which the US should be party
  • Financial Times (Lex): Global exchanges: indications of a fresh bout of consolidation have given rise to tempting but simplistic worries.

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FTSE rises as Apple cheer outweighs China slowdown

by Gavin Lumsden on Oct 21, 2014 at 09:34

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