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Monday Papers: King urged to widen recovery measures

And G20 countries are to step in to try and co-ordinate a response to surging food prices.

 
Monday Papers: King urged to widen recovery measures

Top stories

  • Financial Times: Adam Posen, the outgoing member of the Bank of England’s Monetary Policy Committee, has challenged governor Sir Mervyn King for his insistence that central banks should buy only government bonds in quantitative easing programmes to stimulate growth.
  • Financial Times: G20 countries are to step in to try and co-ordinate a response to surging food prices, after the worst US drought in half a century devastated crops in the world’s largest agricultural exporter.
  • Financial Times: Standard Chartered is pushing for a settlement to resolve allegations it violated US sanctions prohibiting dealings with Iranian entities ahead of a preliminary hearing on Wednesday with New York State banking regulators.
  • The Daily Telegraph: AIG, the insurance giant, is pulling some of its cash out of the eurozone in the latest sign of corporate capital flight from the debt stricken continent.
  • Financial Times: JP Morgan Chase aims to boost annual pre-tax profit by $1 billion within five years by merging its investment and corporate banks – the first target set by the new division’s co-chief executives, Michael Cavanagh and Daniel Pinto.
  • The Independent: Sir David Walker, the new chairman of Barclays, has admitted that its bankers are paid too much and that massive bonuses have undermined the bank's ethical culture.
  • The Guardian: An end to free banking could be on the cards at Barclays after Sir David Walker, the newly appointed chairman of the bank, indicated his support for the idea of paying for current accounts.
  • Daily Express: British businesses are being urged to build on the economic boost from the London 2012 Olympics by forging closer links with Brazil as it prepares to host the next Games.
  • Daily Mail: The Centre for Economics and Business Research has said lost revenue from tourists and a drop in productivity from people either working from home or taking holidays during the games has cost the UK economy £1 billion this year; but the games could pay for itself by 2021 by helping London generate an extra £1.8 billion a year by 2015.
  • The Daily Telegraph: Directors at luxury housebuilder Berkeley Group could walk away with more than £280 million in shares if they meet a goal to return £1.7 billion to shareholders.

Business and economics

  • The Independent: A third of firms in the UK are overstaffed and almost two-thirds are planning to shed staff over the coming year if the wider economy fails to pick up, according to a survey for the Chartered Institute of Personnel and Development.
  • Financial Times: Some fund managers in Europe could be caught by unexpectedly strict pay curbs when the first EU attempt to regulate the hedge fund and private equity industry becomes a reality next year.
  • The Daily Telegraph: Germany will block any new aid to ailing Greece if Athens does not fully comply with the terms of previous rescue packages, even if other countries support unlocking funds, Michael Fuchs, the deputy head of Chancellor Angela Merkel's conservative parliamentary bloc, has said.
  • The Independent: Tracey McDermott, the Financial Services Authority's new chief policewoman, has warned the City that there will be no let-up in the tough line taken in response to a string of scandals.
  • Daily Mail: Construction firm McGoff & Vickers founded in Liverpool in 1925 has left creditors £3.8 million out of pocket after going into administration.
  • Financial Times: U.S. and UK law firms are racing to set up offices in South Korea to feed its corporations' growing demand for legal services, after the government opened the sector to foreign competition.
  • Financial Times: International advertisers are grappling with renewed concerns over the hidden costs of advertising on Facebook, after an Australian standards board ruled that companies are responsible for policing defamatory or misleading comments posted by ordinary users on corporate Facebook pages.
  • Financial Times: The Spanish and Italian commercial property markets have all but collapsed with the number of transactions in both countries falling more than 90% in the three months to July as investors worry about the future of the eurozone.
  • The Guardian: A women-only industrial city dedicated to female workers is to be constructed in Saudi Arabia to provide a working environment that is in line with the kingdom's strict customs.
  • Financial Times: Investors in UK public transport companies are taking a fresh look at FirstGroup as anticipation mounts that the UK’s biggest operator in the sector stands to win the first significant rail franchise in a busy period of renewals.
  • The Daily Telegraph: Cynthia Carroll, chief executive of Anglo American, is under attack from shareholders who have demanded an immediate change of management because they have lost confidence in her strategy and leadership.
  • The Guardian: Sir Michael Rake's tenure as chairman of easyJet will be put to the test on Monday when shareholders vote at a meeting called by Sir Stelios Haji-Ioannou, the founder of the low-cost airline and largest shareholder.
  • Financial Times: The two-year battle for the future of TMX Group, Canada’s largest exchange operator, has ended with an overwhelming majority of its shareholders favouring a scheme that will create a big bourse in North America.
  • The Daily Telegraph: Travelodge's new owners are considering putting the budget hotel company into a company voluntary arrangement (CVA) to deal with its crippling debt pile.
  • Financial Times: The producers behind the hit television show American Idol will release their latest reality TV series on Facebook, showcasing the first television show to air on the social network and a cable channel at the same time.
  • The Daily Telegraph: Vincent de Rivaz, the chief executive of EDF Energy, said he would seek a price of less than £140 per megawatt hour for electricity from its proposed nuclear plant at Hinkley Point in Somerset.
  • Financial Times: Short selling of European car stocks is at a two-year high, making the sector one of the most heavily shorted in Europe, as traders bet slowing growth will hurt even the continent’s profitable producers.
  • Financial Times: Total proceeds from privatisations in 2011 fell to $94.4 billion, less than half the record $213.6 billion raised during 2010.

Share tips, comment and bids

  • Financial Times: American Airlines will decide within weeks whether to pursue a merger, including the “attractive option” of merging with smaller rival US Airways.
  • Financial Times: EQT Partners, the Swedish private equity group, has clinched a closely fought bidding battle to buy IT process automation company UC4 from the Carlyle Group for €220 million.
  • The Guardian (Comment): Ofcom's tussle with BSkyB leaves it in a terrible position.
  • The Guardian (Comment): The speed with which the likes of BlackBerry and HTC have fallen from favour shows just how fast and fickle the mobile phone market is.
  • The Daily Telegraph (Comment): Five years on, the Great Recession is turning into a life sentence.
  • Financial Times (Lex): China slowdown: Beijing does at least have room to loosen monetary policy further.
  • Financial Times (Lex): ThyssenKrupp: Europe’s steelmakers, like their iron ore suppliers, have been hit hard by the crisis. ThyssenKrupp is fighting back.

2 comments so far. Why not have your say?

Jn

Aug 13, 2012 at 09:34

An end to free banking could be on the cards. For long years, the banks have benefited from the funds languishing in the current accounts. They will still benfit in the future. So why impose fees on them. Otherwise they should pay decent and HONEST interest on them.

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BILLFISH

Aug 13, 2012 at 10:47

Allied to their move to tranfer the cash held in their SIPP, ISA and Stockbroking accounts to Barclays bank, thus bringing the sum off the cash in these accounts under a single £85,000 for the ICS, the move to charge for current accounts would seem to be Barclay's latest move to lose customers.

Is there anyone at the top of that bank with any clue of what their customers want or need? Or is this just another example that they do not really care?.

This bank does not appear to have to have either its own customer's or its shareholder's interests at heart when inventing these rather odd strategies.

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