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Saturday Papers: SAC in record $614m insider settlements

And The Man Group, London’s biggest hedge fund, has scrapped bonuses for its top executives.

Saturday Papers: SAC in record $614m insider settlements

Top stories

  • Financial Times: SAC Capital, the $15 billion hedge fund run by Steven Cohen, paid $614 million to settle civil insider trading charges, in what regulators say is the largest payment over an insider trading inquiry.
  • Financial Times: The Man Group, London’s biggest hedge fund, has scrapped bonuses for its top executives, in the first sign that the City debate over pay has spilled over into the freewheeling hedge fund industry.
  • Financial Times: UniCredit, Italy’s largest bank by assets, has reported a larger than expected loss in the fourth quarter of 2012 as it ramped up its provisions against bad loans in the face of a deteriorating economy in Italy.
  • The Daily Telegraph: Sports Direct is trying to strike a deal with landlords to keep 116 Republic fashion stores open by offering to link rental payments with turnover in each store.
  • The Guardian: A tax break to ease the costs of childcare, which was at the heart of a new year relaunch of the coalition, is to be delayed as worsening public finances leave George Osborne struggling to balance the nation's books.
  • The Guardian: The UK arm of Spanish bank Santander handed 19 of its bankers more than £1 million last year, including its chief executive Ana Botín who received £4 million.
  • The Independent: The online gambling group saw its profits drop 17% last year as it was hit by a new tax in Germany and concentrated on creating a single platform following last year's merger of bwin and partygaming.

Business and economics

  • The Guardian: The Bank of England governor Sir Mervyn King has warned the Treasury against watering down the commitment to low inflation in the budget next week, describing a return to high inflation as "scary".
  • The Daily Telegraph: Britain's pubs industry is under threat from "counterproductive" taxes that hand an unfair advantage to supermarkets selling cheap alcohol, major pub groups have said.
  • Financial Times: Leading private banks are no longer offering mortgages in foreign currencies after wealthy borrowers who tried to profit from lower interest rates abroad have been hit by rising repayments as the value of the pound has fallen.
  • Financial Times: BP has sought an injunction to stop a compensation fund paying out on “fictitious” claims from businesses that say they lost money as a result of the 2010 Gulf of Mexico oil spill, in an attempt to save billions of dollars in costs.
  • Financial Times: A sixth man, Grant Harrison, a former managing director of Altium Capital, has been accused of insider trading in relation to the UK financial regulator’s biggest investigation, which centres on an alleged £3 million conspiracy.
  • The Daily Telegraph: Boeing said a plan to make its 787 Dreamliner batteries safe could be ready "within the next few weeks".
  • The Independent: Brady Dougan, the chief executive of Credit Suisse, warned yesterday that some of the bank's 6,000 London employees may choose to move to Zurich or New York to avoid strict new limits on bonuses planned by the European Union.
  • Financial Times: Goldman Sachs’ co-head of southeast Asia, Steven Barg, is moving to a newly created role in New York barely six months after taking up his current position.
  • The Independent: Wetherspoons, regarded as one of the best-run operators, paid tax of £273.5 million in the six months to January, a rise of £23 million that sees various levies such as alcohol duty and corporation tax take nearly 44% of sales.
  • Financial Times: Dame Sally Davies, the chief medical officer of Britain, is to launch a push to create greater financial incentives for the pharmaceutical industry to invest in tackling the growing global problem of antibiotic-resistant “superbugs”.
  • The Daily Telegraph: Carnival, the cruise company, has cut its profit and revenue forecasts for the year, blaming weak demand and costs from an engine fire that crippled the Carnival Triumph last month.
  • Financial Times: Anthony Bolton, Fidelity International’s “star” fund manager, is cutting the annual charge on his high-profile China Special Situations fund, in the latest move by an investment trust to reduce costs for investors.
  • Financial Times: Gold continued its recovery, edging higher for the second week in a row despite outflows from exchange traded funds; the precious metal was trading at $1,594.01 a troy ounce on Friday, up 1% on the week.
  • Financial Times: Tom Albanese, the former chief executive of Rio Tinto, who lost his job after the miner posted its biggest ever loss took home a 10% pay rise last year; his total pay jump from £3.98 million to £4.36 million in 2012, according to Rio Tinto’s annual report.
  • Financial Times: Anthony Bolton, Fidelity International’s “star” fund manager, is cutting the annual charge on his high-profile China Special Situations fund, in the latest move by an investment trust to reduce costs for investors.
  • Financial Times: The billionaire John Paulson has announced that he has no plans to move to Puerto Rico.
  • The Independent: The pound, which hit 33-month lows against the dollar this week, rose as high as $1.5177 yesterday after the Governor of the Bank of England's comments that the currency was now "properly valued".
  • Financial Times: Shinzo Abe, Japan’s prime minister, has committed to joining talks on a proposed trade deal with the US and 10 other countries.
  • Financial Times: Ina Drew, the former JPMorgan chief investment officer, broke her public silence on the Wall Street bank’s $6 billion “London whale” trading loss on Friday, blaming it on two underlings as she sought to distance herself from the disastrous bets on credit derivatives.
  • Financial Times: Portugal’s centre-right government expects the economy to plunge deeper into recession this year.
  • The Independent: Shell's beleaguered campaign to produce oil in the Arctic has suffered a further setback after the US Interior Secretary Ken Salazar said the company "screwed up" its attempt to drill in Alaska last year.
  • The Daily Telegraph: Switching the Bank of England’s focus from inflation fighting to growth would be “dangerous” and “irresponsible”, its chief economist, Spencer Dale, has warned.
  • The Daily Telegraph: Guernsey is to share information about the offshore bank accounts of British citizens to the Treasury under an agreement designed to combat tax evasion.

Share tips, comment and bids

  • Financial Times: Turkish Airlines is purchasing 82 narrow-body aircraft from Airbus, with an option on 35 others.
  • Financial Times: A Danish pension fund has sold its $48 million stake in Hospira in protest at the US pharmaceutical group’s failure to prevent its medicines being used for the execution of prisoners on Death Row.
  • The Guardian: Four offers to buy Fopp, the cut-price music chain, have been received by administrators to the failed high street retailer HMV.
  • Financial Times: US fund manager Waddell & Reed, one of Volkswagen’s largest shareholders, jettisoned $1.2 billion worth of shares in the German group, putting further negative pressure on its stock price.
  • Financial Times: BTS Group, which operates Bangkok’s SkyTrain transit system, is seeking to raise as much as $2.1 billion in an initial public offering of an infrastructure fund partially backed by rail fares in what would be Thailand’s biggest ever new listing.
  • Financial Times: Malkin Holdings, the owner of New York’s Empire State Building, has secured nearly three-quarters of the votes it needs to proceed with a controversial $1 billion initial public offering; Malkin is seeking to create a publicly traded real estate investment trust on the New York Stock Exchange.
  • The Independent: Eurotunnel has set out its defence against a Competition Commission ruling that it should sell the ferries business it bought from collapsed operator SeaFrance.
  • Financial Times (Lex): JP Morgan: if the ‘whale’ trade can happen at JPMorgan – regarded as a model of stability – what is happening elsewhere?
  • Financial Times (Lex): Rentokil: the UK business services group’s share price is back to 1993 levels as its parcel delivery unit continues to drag it down.
  • Financial Times (Lex): Lindt & Sprüngli: a growing appetite for western confectionery in Bric markets offers longer-term potential.
  • Daily Mail (Comment): Private equity has been at, or near, the scene in a string of high profile disasters, including Peacocks which went under when RBS refused to swap debt for an equity stake.
  • The Independent (Comment): Hot news from Japan. The nation currently paying pretty much the highest price in the world for its energy since the Fukushima disaster may have found a solution. Better still, it has a really cool name: fire ice.

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Lloyds preference shares rally as bank breaks silence

by Daniel Grote on Apr 26, 2018 at 12:43

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