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Monday Papers: France targets UK’s euro trade supremacy

And British Chancellor Osborne vows £10 billion tax dodging purge.

 
Monday Papers: France targets UK’s euro trade supremacy

Top stories

  • Financial Times: The City of London should be deposed as the euro’s main financial centre so the single currency club can “control” most financial business in the eurozone, Christian Noyer, France’s central bank governor, has said.
  • Financial Times: British Chancellor George Osborne will on Monday set out plans for a “£10 billion tax dodging clampdown”, as he struggles to control the deficit and contain a growing outcry over the tax treatment of multinationals, including Starbucks.
  • Daily Mail: Labour peer Lord Mandelson has landed a money-spinning role advising commodity trader Glencore.
  • Financial Times: Apple and Samsung will once again square up over rounded corners and other elements of smartphone design, as a US judge considers whether to overturn or enlarge the $1 billion verdict against the South Korean group.
  • The Daily Telegraph: Facebook board member Reed Hastings has claimed he had no idea who the company's former European chief was - or that she had resigned, confirming many shareholders’ worst fears that the directors only occupy a nominal role at the social network.
  • Financial Times: News Corp is expected to give partial details this week of the future governance structure of the separate entertainment and publishing companies that will emerge when Rupert Murdoch’s media group splits next year.
  • Financial Times: Tom Mockridge has resigned unexpectedly as chief executive of Rupert Murdoch’s UK newspaper arm, people familiar with his decision said on Sunday, after being passed over for the chief executive position at the publishing company News Corp is expected to spin off next year.
  • The Daily Telegraph: HSBC is preparing its first sale of sub-prime loans since the height of the financial crash, as Britain's largest bank begins to off-load more than $40 billion of toxic US debt it still holds on its books.
  • The Guardian: Starbucks has agreed to review its UK tax arrangements following months of criticism over its use of overseas subsidiaries which led to it paying no corporation tax in the last three years.
  • The Daily Telegraph: The British government is to explore an internationally co-ordinated new tax designed specifically to capture the earnings of internet giants including Amazon and Google.
  • Financial Times: A scandal over the so-called “Lagarde list” of Greeks with Swiss bank accounts has deepened with claims that former prime minister George Papandreou’s 89-year-old mother was the beneficial owner of a Swiss account containing €550 million.
  • The Daily Telegraph: Mayfair-based entrepreneurs Vincent and Robert Tchenguiz will launch their multi-million pound damages case against the Serious Fraud Office on Monday.
  • The Guardian: The British government's Crossrail project is embroiled in a scandal over the blacklisting of construction workers after a senior manager on the rail link emerged as a regular user of the blacklist in a previous job.
  • Financial Times: Companies processing floods of mis-sold payment protection insurance claims – a scandal that has already cost UK banks nearly £11 billion – have started offshoring their operations to cut costs and keep pace with demand.

Business and economics

  • Financial Times: US Treasury Secretary Tim Geithner challenged Republicans in Congress to come up with their own budget proposal as the two political parties continued to spar on Sunday ahead of the looming fiscal cliff deadline at the end of the month.
  • Financial Times: China’s purchasing managers’ index rose to 50.6 in November from 50.2 in October, signalling slightly faster growth in the crucial manufacturing sector and adding to mounting evidence that the world’s second-largest economy is rebounding.
  • Financial Times: Nobuyuki Hirano, chief executive of Bank of Tokyo-Mitsubishi, Japan’s largest bank, admitted that the bank’s $485 billion holdings of Japanese government bonds were a major risk but said he was powerless to do much about it.
  • Daily Mail: The Financial Times is facing a £2.3 million loss after the collapse of its printer, Newsfax; FT had lent the firm £2.6 million, and will get back only £332,000.
  • Financial Times: Paragon Group is in talks with Hampshire Trust over a deal that, if completed, would grant the buy-to-let lender a banking licence.
  • The Daily Telegraph: Tesco will warn this week that sales in the UK have slipped into decline again, provoking new question marks about chief executive Philip Clarke's £1 billion turnaround plan and the strength of the UK economy.
  • Financial Times: Post-tax profits at Thames Water fell by £19 million to £127.6 million in the six months to September, when its revenues reached £903 million.
  • Daily Mail: Jemma Kidd Limited, in which former model is sole director and shareholder, is about to be put into the hands of liquidators at RSM Tenon.
  • Financial Times: Telefónica is working on plans to list between 10-15% of its Latin American operations in an attempt to show that financial markets have undervalued the heavily indebted Spanish telecoms group.
  • Financial Times: RWE, the German utility, is in talks to quit the Nabucco gas pipeline project it long championed, a move that would be a further blow to a scheme that once was billed as key to ending western Europe’s dependence on Russian gas.
  • Financial Times: Publicis’ ZenithOptimedia is now forecasting that global ad spending will increase 4.1% to $518 billion, with growth in developing markets offsetting declines in the eurozone and slower growth in other regions.
  • The Daily Telegraph: Luxury audio specialist Bang & Olufsen aims to reduce its reliance on European sales with a push into China and the US.
  • Financial Times: The British Law Commission is set to draw up draft commercial insurance legislation, which some analysts warn would prompt underwriters to push up companies’ premiums as much as 50% if enacted.
  • Financial Times: Lending by bank syndicates to companies in the eurozone has fallen by 45% so far this year to the lowest in a decade as pressure on the region’s financial institutions speeds a structural shift towards capital market funding.
  • Financial Times: For the first time, China is expected to export 1 million vehicles this year.

Share tips, comment and bids

  • Financial Times: Delta Air Lines is in talks to buy Singapore Airlines’ 49% stake in Virgin Atlantic, reviving a deal long discussed in the airline industry, sources said.
  • The Guardian (Comment): British Chancellor George Osborne was once determined that Bank governors should serve eight years and have to apply for the job. Both these criteria have now been discarded for convenience.
  • The Daily Telegraph (Comment): The world's commodity supercycle is far from dead.
  • The Daily Telegraph (Comment): Unfortunately, how chancellors are perceived at the time has much more to do with how the economy is behaving than with how good they are.
  • Daily Mail (Comment): We keep hearing about the lack of economic growth and this Autumn Statement will be no exception. But George Osborne should be dealing with the correction of the yawning budget and current account deficits.
  • Financial Times (Lex): Fiscal cliff: if a deficit-cutting agreement is reached in Washington it may not be all good news for equity investors with corporate profits likely to suffer.
  • Financial Times (Lex): PTT: Thai oil and gas explorer is not growing as fast as it should be despite several big acquisitions, a problem that has dragged down its share price.
  • Financial Times (Lex): European autos: investors will not look favourably on sector until they know the cycle’s low point is in sight and that production overcapacity is being addressed.

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FTSE falls below 6,700 in broad-based sell-off

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