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Sunday Papers: Banks fear 'risk to City’ of EU exit

And Tidjane Thiam, Prudential's ambitious boss, is planning to review the company's structure next year.

Sunday Papers: Banks fear 'risk to City’ of EU exit

Top stories

  • The Sunday Telegraph: Some of the City's largest banks are privately warning the Treasury that moves towards Britain leaving the European Union would be a disaster for the City and would jeopardise confidence in the economic recovery.
  • The Independent on Sunday: Tidjane Thiam, Prudential's ambitious boss, is planning to review the company's structure next year in a move that could lead to the long-mooted break-up of Britain's biggest insurance group.
  • The Sunday Telegraph: Hewlett-Packard fired its latest salvo in its war of words with Autonomy founder Mike Lynch when it insisted it had been "very transparent" over an alleged accounting fraud at the company it bought.
  • The Independent on Sunday: All eyes will be on Ftse 100 high street titan Next on Thursday, as the retail bellwether offer up some of the sector's first hard news on festive sales.

Business and economics

  • The Mail on Sunday: Government-backed venture capital funds grew by 20% in the latest financial year, despite big slumps in value at several of its investment funds.
  • The Sunday Telegraph: China is poised to gain control of a key iron ore supply route in Africa as the country continues to expand its dominance over the continent's natural resources.
  • The Sunday Telegraph: Business confidence is still in a fragile state despite a slightly better economic outlook for 2013, according to research from the accountancy firm BDO.
  • The Mail on Sunday: Lloyds is facing a multi-million-pound loss after the collapse last month of one of its debtors, aerospace group Hampson Industries.
  • The Observer: America teetered on the fiscal cliff on Saturday as Senate leaders continued to haggle over a tax deal to avert a looming US economic crisis.
  • The Observer: Figures from retail research firm Springboard show December numbers until Christmas Eve were down 1.3% on last year.
  • The Independent on Sunday: British investors are starting to pour their cash into the Iraq Stock Exchange, as Baghdad looks for the billions it needs to rebuild the country's fragile economy.

Share tips, comment and bids

  • The Sunday Telegraph: LCH.Clearnet will begin a campaign this week to persuade shareholders it has received a better takeover offer from the London Stock Exchange - even though the headline price has dropped by 21%.
  • The Mail on Sunday: Jim O’Neill, chairman of Goldman Sachs Asset Management, said that the two sides might not have to seal a final deal, but they need at least to convince markets that a solution is imminent.
  • The Observer: HMV’s lenders plan to block efforts by turnaround fund Apollo to buy the firm’s debt as they plot a revival of its fortunes.
  • The Sunday Telegraph (Comment): An unlikely new consensus about the world economy seems to be emerging - 2013, it is now quite widely believed, is going to be quite a bit better than 2012.
  • The Sunday Telegraph (Comment): So here we are, at the turn of the year, with the global economy tottering on the edge of America's fiscal cliff.
  • The Observer (Comment): With debt spiralling upwards, the US president must act to make the system fairer and stop pandering to baby-boomer greed.
  • The Observer (Comment): Britain should not be contemplating isolation from Europe; rather, it should engage with its leaders to stop austerity measures that threaten social stability.
  • The Mail on Sunday: As well as tougher regulations and sanctions, we need decent financial education.
  • The Mail on Sunday (Midas share tips): Existing investors in Quindell Portfolio who have tripled their money should sell a third of their stock to bank some profit but keep the rest; hold Secure Trust Bank; Energetix Group - Existing investors should hold and new investors could buy a few shares at current levels; hold and be patient with Futura Medical; Magnolia Petroleum - nervous investors should sell now. Others should sell half their shares and keep the rest.

5 comments so far. Why not have your say?

Chartered Accountant

Dec 30, 2012 at 10:31

Warnings from banks about a possible EU exit need to be taken with a pinch of salt. What we really need is a proper debate on the pros and cons of remaining in or coming out and all the time there is reluctance to have that debate, leaves one wondering why. Behind the scenes lobbying is not a solution. As I look around the world, I note that banking centres like New York and Singapore seem to manage quite happily outside the EU. Whether or not coming out of the EU would lead to a contraction in banking operations in London is uncertain. What seems certain is that coming out of the EU may lead to more jobs being created outside London from say restoration of agricultural and farming practices stopped by EU regulations and restoration of our fishing fleets through reclamation of our coastal waters. Let us have a full debate on these potential pluses and minuses.

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brian douglas

Dec 30, 2012 at 11:50

chartered accountant makes several valid points, however the main purposes was the armed protectionof GB and a United Europe to prevent future wars.

The promises of a greater trading nation has only been achieved by Banking Investment we have virtually no manufacturing base and the trading of so called 300 million potential customers becomes unrealistic the facts are that the so called benefits of Europe are still to be discovered.There are many anomalies and open facts required before the man in the street can make a positive judgement including farming policies and fishing restoration.

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Dec 30, 2012 at 12:06

It would also seem that the need for greater financial education should be extended to those who actually work in financially related industries such as bankers, analysts, watchdogs, and advisers along with MP's who suddenly find themselves in economy related roles.

Understanding consequence when evaluating risk would seem to be a huge blind spot coupled with the apparent motive to make money by relieving others of it through promises of wealth with little downside when, in reality, all the risk is with the often too trusting investor but not the banker/manager etc. They still take their "contracted" cuts and bonuses despite offering very little talent/inspiration/management.

If all of the above had the required understanding, diligence, integrity and the ability to clearly communicate then perhaps things would be very different and individual expectations would be more realistic.

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Jeremy Bosk

Dec 30, 2012 at 17:08

In terms of manufacturing output by value the UK is still in the world top ten. That manufacturing is done by machines and computers. Even China now employs more people in services than in manufacturing. Using people to do jobs that could be done better and cheaper by robots is stupid. The real question is: how do you house, feed, clothe and one hopes educate the people displaced by the machines?

Quite obviously there must be redistribution of income from robots (owners of) to people. The 1500 people in UK financial services who were paid over £1 million last year are all highly educated. Instead of driving them away to New York or Singapore, we should aim to produce more of the same and drive down prices (including the price of their labour) through competition.

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William Phillips

Dec 30, 2012 at 20:25

The EU is going to come crashing down anyway. No need for Britons to be injured by falling masonry.

The banksters can kiss a certain portion of my anatomy. These mendicants and traitors have forfeited the right to any say in the destiny of the country they almost ruined. Their impertinence is incorrigible; their bluff should be called pronto.

The reduction of their hazardous 'industry' of sticky-fingered swindling to a decent size would be a positive benefit-- one more reason why we're Better Off Out, the sooner the better. This country has got to stop thinking it can make a living by fooling around with money, and start doing and making things the rest of the world values. Britain's most intelligent young people should find something better to do with their lives and talents.

It would be nice to think politician had the guts to tell usurers and casino gamblers talking their own book to pipe down, but if Hector Sants can be knighted I somehow doubt we possess leaders of that timber.

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