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Saturday Papers: Oil hits 12-year low as Wall Street sinks

And 'financial carnage' wipes £113 billion off FTSE in ten days as China enters bear market.

 
Saturday Papers: Oil hits 12-year low as Wall Street sinks

Top stories

  • Financial Times: US stocks fell below the lows they hit in August and oil prices settled below $30 for the first time in 12 years as further disappointment over economic data reinforced a spiral of investor pessimism about the outlook for the world economy.
  • The Daily Telegraph: Britain’s leading companies surrendered more than £113 billion in value in the first 10 trading sessions this year, as another oil-inspired sell-off wreaked havoc on global financial markets.
  • The Guardian: Britain’s builders suffered an unexpected drop in output in November, signalling a faster slowdown in GDP growth during the final three months of 2015 than most City forecasts.
  • The Guardian: Apple may owe $8 billion in back taxes from its use of potentially illegal tax shelters in Ireland.
  • Financial Times: One person has been left “brain-dead” and five others admitted to hospital after a serious accident during a trial in France for an experimental painkiller being developed by Portuguese drug company Bial.
  • Financial Times: GE is to sell its appliance business to China’s Qingdao Haier for $5.4 billion, one month after pulling plans to sell it to Electrolux of Sweden due to opposition from antitrust regulators.
  • Financial Times: Volkswagen lost further market share in Europe in December as the rest of the world’s manufacturers enjoyed a blockbuster end to the year that helped push annual car sales in the region up almost 10%.
  • Daily Mail: A key barometer of world trade has crashed to a record low in a worrying sign the global economy is grinding to a halt; the Baltic Dry Index, which measures the cost of shipping raw materials such as coal, iron ore and grain, has fallen nearly 70% since August to its lowest level since its introduction in 1985.

Business and economics

  • The Guardian: Walmart is closing 269 stores, more than half of them in the US and another big chunk in its challenging Brazilian market.
  • Financial Times: WElink Energy, a renewable energy specialist, has signed a £1.1 billion framework agreement with China’s state-owned National Building Materials Group to build at least 8,000 “zero carbon” homes in the UK.
  • Financial Times: BHP Billiton highlighted the risk of a dividend cut at the world’s most valuable mining group by taking a $7.2 billion writedown on its US shale assets.
  • The Daily Telegraph: The Bank of England has banned two former Co-op Bank chiefs from holding senior roles in the City for life.
  • Daily Mail: Shell dividend could be under threat over audacious takeover of gas specialist BG Group.
  • The Guardian: The US car industry has the technology to make future vehicles meet the federal 54.5-mile per gallon average fuel economy requirement scheduled to arrive in 2025, according to the CEO of Fiat Chrysler Automobiles.
  • Financial Times: Three of the biggest US banks – Citigroup, Wells Fargo and JP Morgan - revealed the damage wrought by a plunging oil price this week, disclosing big jumps in costs for bad energy loans and fears of contagion in other portfolios.
  • Daily Mail: Moneysupermarket.com was the biggest loser on the FTSE 250 yesterday following a broker’s downgrade of the stock and as sales in the group’s insurance business fell sharply.
  • Daily Mail: Bovis Homes looks set to deliver a big rise in annual profits following a strong year which saw the firm sell more homes at higher prices, continuing a run of upbeat trading statements from the sector.
  • Daily Mail: Retailer Bonmarche saw its online and stores sales fall over the key Christmas period, but overall trading was in line with expectations and shares rallied having been battered after a December alert.
  • The Daily Telegraph: Harriet Green, the former boss of Thomas Cook, received £6.3 million from the company in 2015, despite only working for two months during the financial year.
  • The Daily Telegraph: Hennes & Mauritz, the world’s second-biggest fashion retailer, posted a 10% rise in sales last month, beating analyst forecasts.

Share tips, comment and bids

  • The Daily Telegraph (Questor share tip): Stanley Gibbons shares hit 11-year low as it reviews funding options; sell.
  • The Daily Telegraph: International Airlines Group, the FTSE 100 giant behind British Airways and Spain’s Iberia, is to boost its transatlantic network after inking a deal with Latam Airlines of Chile to link up on flights between Europe and South America.
  • The Guardian: The competition regulator has given the final clearance for BT’s contentious £12.5 billion takeover of EE, Britain’s largest mobile phone network.
  • Financial Times: Larry Fink, BlackRock chief executive, offered a bearish outlook for markets on Friday when he forecast that stocks may fall another 10%.
  • The Guardian (Comment): Janet Yellen and Fed left with face full of egg after interest rate rise blunder.
  • Financial Times (Lex): GoPro: an idiotic pay scheme for company’s founder.
  • Financial Times (Lex): BHP: mining group could do with cutting the word ‘progressive’ from its dividend policy.
  • Financial Times (Lex): Hong Kong and China: Burberry and Richemont sales glow doesn’t extend beyond mainland.
  • Financial Times (Lex): Lululemon: an admirable turnround at the yoga pants maker.

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