Citywire for Financial Professionals

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Saturday Papers: BoE refused to take responsibility for regulating Libor

And Spain’s borrowing costs soared to within a whisker of a new euro-era high.

 
Saturday Papers: BoE refused to take responsibility for regulating Libor

Top stories

  • The Daily Telegraph: The Bank of England has been accused of refusing to lead reform of the discredited Libor system after failing to act on warnings more than four years ago over interest rate rigging by banks.
  • Financial Times: Spain’s borrowing costs soared to within a whisker of a new euro-era high as mounting fears over its wilting economy and government finances overwhelmed the eurozone’s approval of loans to help Madrid recapitalise its banks.
  • The Daily Telegraph: Nasdaq has said it will file a $62 million compensation plan for firms that lost money in the bungled Facebook initial public offering in May.
  • The Independent: Betting exchange Betfair hit out at William Hill yesterday as it thwarted the bookmaker's latest attempt to make thousands of its customers pay the UK's horseracing levy.
  • The Daily Telegraph: The International Monetary Fund deliberately suppressed evidence that Europe was heading for a debt crisis, according to a blistering resignation letter from a senior economist at the fund.
  • Financial Times: Jamie Dimon has bought more than $17 million of shares in JP Morgan Chase in an apparent demonstration of confidence as federal authorities investigate a shock trading loss at the bank.

Business and economics

  • The Daily Telegraph: Betfair took a swipe at William Hill after the High Court rejected an attempt by the bookmaker to overturn a decision by the Horserace Levy Board.
  • The Independent: The Democratic Republic of the Congo's new prime minister has ordered an investigation into the nation's mining industry after a damning report by an international watchdog found tens of millions of dollars a year in tax revenues were being lost in the system.
  • Financial Times: General Electric, the largest US industrial group by market capitalisation, said its heavy investments in growth markets were paying off, despite an 18 per cent fall in second quarter net earnings to $3.14 billion.
  • The Daily Telegraph: Spanish shares suffered their biggest one-day drop in two years, leading European markets' plunge downwards, after a major Spanish region said it needed rescuing.
  • The Daily Telegraph: Chancellor George Osborne has hit an obstacle in his plans to cut Britain's deficit, after the public sector borrowed £500 million more in June than it did last year.
  • Financial Times: Phillip Murphy, a former Bank of America executive, has been charged with two counts of conspiracy and one count of wire fraud as part of a long-running investigation into bid-rigging in the municipal bond market.
  • The Independent: David Wild, the chief executive of Halfords, has left the bicycle retailer with "immediate effect" after a profit warning yesterday capped a sustained period of under-performance.
  • The Daily Telegraph: The misery caused by Italy's financial crisis could spark a "civil war" in the southern island of Sicily, the mayor of regional capital Palermo said on Friday.
  • The Guardian: Shares in Dawson International tumbled after the Scottish cashmere maker failed to reach an agreement with the pensions regulator over a rescue plan for its final salary retirement scheme.
  • The Daily Telegraph: Fitch has cut the credit rating of three of Japan's biggest banks over concerns about Tokyo's ability to support the financial sector, after the nation's sovereign debt rating was also cut.
  • The Guardian: China is poised to make a dramatic intervention in Britain's energy future by offering to invest billions of pounds in building a series of new nuclear power stations.
  • The Guardian: Strathclyde police said on Friday they were taking over responsibility for security at Olympic venues in Glasgow from G4S as concerns continued over the firm's staff shortages.
  • The Independent: Spanish borrowing costs hit their highest levels in the history of the single currency yesterday, after a deal by eurozone ministers to bail out the country's ailing banks failed to calm market fears.
  • The Independent: Mobile giant Vodafone is dialling up more cost cuts after sales growth was dragged down by belt-tightening customers in southern Europe.
  • Financial Times: Dubai’s government has replaced the entire board of one its investment funds just a fortnight after they were appointed, in an apparent attempt to restore creditor confidence in Dubai World’s $25 billion restructuring deal.
  • Financial Times: Publicis, the world’s third-largest advertising agency by revenues, reported a slowdown in growth in the second quarter.
  • Financial Times: Xerox cut its earnings forecast for the year after the provider of printers and business services said the economic slowdown in Europe weighed on demand for its technology.

Share tips, comment and bids

  • The Daily Telegraph: Dutch brewing giant Heineken has launched a bid for Asia Pacific Breweries, in a deal that could see it pay £3.8 billion to take full control of the maker of Tiger Beer.
  • Financial Times: The European Commission has launched an in-depth investigation into UPS’s €5.2 billion takeover bid for TNT Express, citing concern about a “very high combined market share” for parcel services.
  • The Guardian: Universal Music has gained two months' more breathing space as it battles to persuade the European commission to approve its £1.2 billion takeover of EMI.
  • Financial Times: Reliance Communications, the flagship telecoms arm of billionaire Anil Ambani’s debt-laden Indian conglomerate, has postponed the Singapore listing of its undersea cable division.
  • Financial Times: Goals Soccer Centres has backed a £73.1 million takeover bid by the Ontario Teachers’ Pension Plan as the Canada-based investment fund outlined plans to expand the five-a-side football pitch company.
  • Financial Times: PTT Exploration and Production, Thailand’s biggest gas and oil company by market capitalisation, this week won the battle for control of Cove Energy after Royal Dutch Shell dropped out of the bidding.
  • The Guardian (Comment): Unlike the eurozone and the UK, where a double-dip recession is already under way, the US has undergone even more public sector releveraging - effectively stealing growth from the future.
  • The Guardian (Comment): George Osborne's policies and justifications have been demolished by the IMF. Surely now it's time for plan B.
  • Financial Times (Lex): US housing – flimsy foundations: with prices rising, construction data encouraging and shares in builders rallying, the picture on the home front should be positive.
  • Financial Times: Spain – that Greek feeling: the more that Spain struggles to save itself from its sovereign debt crisis, the less external investors seem to be impressed.
  • Financial Times: Tour de France – wheels of fortune: British cycling’s successes in recent years make it the ideal case study for what a sport can do when the money starts to flow.
  • Financial Times: Heineken / APB – Time, please: after owning half of Asia Pacific Breweries for 80 years, the brewer has decided it wants the rest. But is it too late to make a move?

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The Expert View: JD Sports, Greggs and DMGT

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