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Thursday Papers: LSE-D Börse would be led by Kengeter

And International Monetary Fund urged the UK to ease austerity should economy slow further.

Thursday Papers: LSE-D Börse would be led by Kengeter

Top stories

  • Financial Times: The European trading giant planned by Deutsche Börse and the London Stock Exchange Group will be based in London but headed by the German group’s chief executive Carsten Kengeter.
  • The Guardian: The International Monetary Fund has urged the UK to ease back on austerity should the economy slow further, as it warned finance ministers at the G20 summit in Shanghai to boost public spending on infrastructure to fuel global growth.
  • Financial Times: One of Europe’s fastest-growing fintech companies Wirecard plunged by more than a fifth following publication of a highly critical report of its controls by a research group.
  • The Daily Telegraph: The pound has dropped below $1.39 for the first time in nearly seven years, with economists warning that a British exit from the European Union could leave households squeezed by a brutal combination of soaring inflation and weak economic growth.
  • Financial Times: The former chairman of Lloyds Banking Group has said its shareholders “should be grateful” that it did not abandon the takeover of rival HBOS during the financial crisis, even though the deal left them nursing big losses.
  • Financial Times: Phillip Wale, chief executive of Panmure Gordon, one of the City’s oldest stock brokers, has quit and been replaced with immediate effect by Patric Johnson, his deputy.
  • Financial Times: Airbus and rival aerospace groups on Wednesday signalled their opposition to a merger between Honeywell and United Technologies, key suppliers to the aircraft makers, in moves that greatly reduce the chances of the $90 billion deal being revived.

Business and economics

  • Daily Mail: Profits from the oil industry continued to be hammered by the ‘unprecedented’ commodities rout; oil services firms Weir Group (up 0.5p to 902p) and Petrofac (up 35.5p to 777.5p) were the latest victims of the slump with both posting tumbling profits and further cost cutting.
  • The Independent: Standard Chartered scrapped all annual bonuses for its bosses and made no long-term awards to former chiefs under previous bonus schemes as its profits plunged by 84%.
  • The Guardian: The boss of Tata Steel Europe has jumped ship to a German firm, in the middle of sale talks that could determine the future of thousands of UK jobs.
  • The Independent: Beijing has stolen New York's top spot as the city with the most billionaires in the world, according to a new study.
  • The Guardian: France is seeking €1.6 billion in back taxes from US internet giant Google, criticised for its use of aggressive tax optimisation techniques, a source at the finance ministry says.
  • The Guardian: UK businesses are battling a huge rise in cybercrime capable of bringing down entire companies, according to analysis by accountancy company PwC.
  • Financial Times: HSBC is beefing up its investment bank by hiring Matthew Westerman, a senior executive at Goldman Sachs, to run an enlarged global banking operation.
  • Financial Times: Europe’s largest power company Iberdrola reported a 5% rise in underlying earnings for 2015, bucking the trend at some of the region’s biggest utility companies.
  • Financial Times: Chesapeake Energy, the second-largest gas producer in the US, on Wednesday announced a cut of up to 69% in its capital spending for this year, as it seeks to conserve cash amid the commodity price crash.
  • Daily Mail: Britain received a jobs boost as Aston Martin, McLaren and Airbus all announced a ramp up in production across the UK.
  • Financial Times: A British exit from the EU would have a potential negative impact, the chief executive of the London-listed hedge fund Man Group has warned.
  • The Independent: Ryanair boss Michael O'Leary called for Britain to say 'Yes' to Europe and asked Ryanair passengers 'to help deliver a resounding Yes vote'.
  • Daily Mail: Housebuilder Barratt Developments saw its profits surge 40% in the six months to 31 December, continuing the strong performance of the sector as buyers pay higher prices for homes.
  • The Guardian: Brazil’s economic gloom deepened on Wednesday when credit rating agency Moody’s downgraded the recession-hit nation’s sovereign debt status to junk.
  • Financial Times: Demand for new staff in the UK has weakened in the past six months as concerns grow over the economic outlook, according to Hays, the listed headhunter often considered a bellwether for the health of the economy.
  • Financial Times: Noble Group is close to finalising a deal with its lenders for a $1 billion-plus credit line, but banks are making the troubled commodity trader pay more than treble the interest rate of last year.
  • Financial Times: Banks across the EU will be tested to see if they could survive the perfect storm of an emerging market shock, stagnant profitability and increasingly unmanageable public and private sector debt.
  • Financial Times: McLaren is attempting to rev up its carmaking business by doubling sales volumes this year, as it launches a range of cheaper, more practical sports vehicles.
  • Financial Times: Takahiro Hachigo, Honda’s chief executive, has ruled out providing any financial help to struggling parts supplier Takata as the Japanese carmaker looks to regain its edge with a shift towards electrification and carbon-free vehicles.
  • Financial Times: Tim Leissner, Goldman Sachs’ Southeast Asia linchpin, has left the bank, which is struggling to distance itself from the scandal surrounding Malaysia’s prime minister and 1MDB, the country’s troubled state investment fund.

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Giles Hargreave: 5 small caps to weather Brexit

by Giles Hargreave on Oct 27, 2016 at 05:01

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