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Saturday Papers: JP Morgan trading losses hit $5.8bn

And Lloyds Banking Group may have been rigging its Libor submissions as early as August 2007, documents released by the Federal Reserve of New York suggest.

 
Saturday Papers: JP Morgan trading losses hit $5.8bn

Top stories

  • Financial Times: JP Morgan Chase has revealed that losses from the trading fiasco in its London office have swollen to $5.8 billion and has restated its first-quarter earnings, opening up fresh questions over disclosures to investors.
  • The Daily Telegraph: Lloyds Banking Group may have been rigging its Libor submissions as early as August 2007, explosive documents released tonight by the Federal Reserve of New York suggest.
  • The Daily Telegraph: Moody’s cut the rating of Italy, the eurozone’s third-largest economy, by two notches to “Baa2” shortly before a major auction of its debt on Friday.
  • The Guardian: Visa, MasterCard and US banks that issue their credit cards have agreed to a $7.25 billion settlement with American retailers in a lawsuit over the fixing of credit and debit card fees.
  • The Daily Telegraph: The New York Federal Reserve warned top US officials in 2008 that lenders may be under-reporting their borrowing costs after a Barclays trader admitted attempts were made to manipulate Libor submissions to "fit in with the rest of the crowd".

Business and economics

  • Financial Times: Wells Fargo, the biggest US home lender, reported another set of record quarterly earnings after originating more mortgages and cutting costs; second-quarter net profit increased 17% to a record $4.6 billion, or 82 cents a share, on revenue of $21.3 billion.
  • The Daily Telegraph: The Olympic security staffing crisis will cost outsourcing giant G4S up to £50 million, instead of the profit expected from delivering the contract, the firm said.
  • Financial Times: Revenues at specialist travel agency Trailfinders fell sharply last year, after strong demand for holidays to the US and bespoke tours of the Far East failed to fully mitigate higher fuel charges for air travel.
  • The Daily Telegraph: Spanish civil servants took to the streets on Friday to protest against austerity measures as Spain's cabinet rubber-stamped tax rises and spending cuts.
  • Financial Times: Yahoo’s board narrowly avoided an embarrassing censure from stockholders in a vote on executive pay, with just under half of shares voted in favour of the internet company’s compensation plan.
  • The Daily Telegraph: Ford's western European sales slumped 10% in the first half of 2012 as it opted not to match heavy discounting by rivals, the second-largest US automaker has said.
  • The Daily Telegraph: Britain's lenders have been handed a near-£1 billion taxpayer-backed windfall that the authorities hope will allow them to lower borrowing costs for households and businesses and boost economic growth.
  • Financial Times: HSBC has launched the lowest ever five-year fixed-rate mortgage this week at 2.99%, providing a competitive rate for homebuyers and borrowers looking to remortgage.
  • Daily Express: Business leaders yesterday gave a cautious welcome to the launch of an £80 billion scheme to stimulate lending by banks.
  • Daily Mail: Banks will face scrutiny from the Office of Fair Trading over the way they run personal current accounts following concerns about lack of transparency and competition.
  • Daily Express: The price of Brent crude climbed yesterday to more than $102 a barrel as Chinese GDP figures showed better-than-expected 7.6% growth.
  • The Independent: Revenues at Experian grew by 14% in its first quarter, driven by the global credit-rating checker's fast-growing Latin American business.
  • The Independent: The reinsurer Munich Re yesterday said the small amount of damage caused by natural disasters in the first half of 2012 helped offset the high losses from the first half of last year from earthquakes in Japan and New Zealand.
  • Daily Mail: Falkland Island oil stocks were again in focus this week as Premier Oil unveiled its $1 billion entry into the South Atlantic.

Share tips, comment and bids

  • The Daily Telegraph: The Takeover Panel has told Royal Dutch Shell and Thailand's PTT to submit final offers for Cove Energy by Monday evening and laid out rules for a formal auction process to bring the prolonged bidding war to a close.
  • Daily Mail: The Co-op is close to scooping 632 branches from Lloyds Banking Group for a knockdown £1 billion price tag – less than original market estimates.
  • The Independent: MGM Advantage, one of the oldest names in British life insurance, has been put up for sale with a potential price tag of £200 million; the investment bank Evercore has been appointed to seek buyers.
  • Financial Times: Acron, the Russian chemicals company, has hiked its offer for Poland’s state-controlled ZA Tarnow by 25% on Friday to 45 zlotys ($13.06) a share.
  • Financial Times: The Ontario Teachers’ Pension Plan, which has around C$117 billion under management, said it had agreed to buy 75% of Helly Hansen, a 135-year-old company that makes clothing for extreme weather conditions.
  • The Daily Telegraph (Comment): It just gets worse. If Sir Mervyn King was up to his waist in Libor before, now he’s drowning in it.
  • The Guardian: China has bucked the crisis with high investment and a strong state sector that could be replicated by western economies.
  • Financial Times (Lex): Libor: everyone has a view on how the daily benchmark for trillions of dollars of loans and derivatives should be overhauled. But alternatives are also flawed.
  • Financial Times (Lex): JP Morgan: investors should forget about London whale spotting and refocus on JP Morgan’s underlying business despite investment banking remaining tough going.
  • Financial Times (Lex): China: the dynamics of first-half growth suggest baby steps in the right direction and official retail sales as a proportion of output hit 43%.
  • Daily Mail (Comment): The speed with which Sir Mervyn King authorised the release of email traffic and exchanges with the Federal Reserve Bank of New York in 2008 looks impressive.
  • Daily Mail (Comment): The notion that there is any alternative to austerity exploded this week as attention turned to how Britain will pay for an ageing population.

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