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Tuesday Papers: Asil Nadir found guilty of theft

And Citi chief rejects call to split bank as focus shifts to emerging markets.

Tuesday Papers: Asil Nadir found guilty of theft

Top stories

  • Financial Times: Asil Nadir, the Turkish Cypriot businessman who is alleged to have “helped himself to tens of millions of pounds” of money from his Polly Peck conglomerate, has been found guilty of three counts of theft in one of the biggest trials of its kind in the British courts.
  • Financial Times: Citigroup’s chief executive Vikram Pandit has knocked back the idea of big banks being split up after calls from people such as his predecessor Sandy Weill.
  • Financial Times: Apple became the most valuable company in history on Monday, as its market capitalisation of $623.5 billion surpassed Microsoft’s record of $620.6 billion held since December 1999.
  • The Daily Telegraph: Facebook floated at $38 in May with an initial sale of 421 million shares, but has since halved in value, falling by as much as 1.4% to $18.80 in opening deals on Monday; shares closed at $19.05.
  • Financial Times: Peter Thiel, a PayPal co-founder and a director at Facebook, sold more than 20 million Facebook shares last Thursday and Friday at an average price of $20 per share in a transaction worth more than $400 million.
  • The Daily Telegraph: Shell will pay Chevron $450 million and swap its interest in two offshore oil fields in Australia in return for Chevron’s interest in the Browse liquefied natural gas project.
  • Financial Times: Everything Everywhere is in advanced discussions to sell part of its crucial spectrum holdings capable of carrying next generation 4G mobile services to Three, the rival network owned by Hutchison Whampoa.
  • Daily Mail: ITV has seen its share price rise by more than half over a year, despite losing viewers to the BBC over the Olympics.
  • The Daily Telegraph: JP Morgan Chase has picked Lee Raymond, ex-chief executive officer of Exxon Mobil, to head an inquiry into losses in a credit derivative portfolio run by its London-based Chief Investment Office.
  • The Independent: The grocery giant Tesco is facing a hefty fine after a dawn raid by the UK Border Agency found it had been employing foreign students illegally.
  • The Daily Telegraph: Barclays has been accused of cutting off the funding of Alderson Print Group, a Surrey-based printing company, after it complained to the bank about being mis-sold an interest rate swap.
  • The Daily Telegraph: Jörg Asmussen, Germany’s director at the European Central Bank, has thrown his weight behind mass purchases of Spanish and Italian debt to prevent the disintegration of the euro, marking a crucial turning point in the eurozone debt crisis.

Business and economics

  • The Guardian: America's worst drought in half a century will push up inflation and put a fresh obstacle in the path of the struggling global economy, one of the UK's leading banks has warned.
  • Financial Times: The European Central Bank has been forced to quash speculation over its plans to tackle the eurozone financial crisis, denying it was considering caps on bond yields to bring down borrowing costs for troubled governments.
  • Financial Times: Best Buy shares fell more than 10% on Monday as talks between the struggling retailer’s board and the company’s former chairman over a $9billion takeover approach broke down.
  • Financial Times: Platinum miner Lonmin says that almost a third of its 28,000-strong workforce has returned to the Marikana mine in South Africa’s North West province, after police last week fired on protesting miners, killing 34 people.
  • Financial Times: Spain’s two-year bond yield fell as much as 41 basis points on Monday, before paring the decline to 18bp to trade at 3.58%, while the 10-year yield dipped 16bp to 6.28%, the lowest since early June.
  • The Daily Telegraph: Spain’s Murcia region could request up to €700 million from the central government to keep it afloat, amid growing concern over the state of the regions’ finances.
  • Financial Times: Shell is in talks with the US government in an attempt to speed up its planned summer drilling programme in the Arctic by starting work before it has secured its final approvals.
  • The Guardian: Bovis Homes celebrated a 27% increase in revenues to £170 million in the six-month period compared to £133 million in the same period last year.
  • Financial Times: Vivendi has recruited Jean-Yves Charlier, former chief executive of Colt Telecom and former head of BT’s European operations, to oversee its disparate group of international telecoms businesses as it ponders large-scale asset disposals or spin-offs.
  • The Guardian: British Culture Secretary Jeremy Hunt has pledged to give creative industries a shot in the arm by ensuring Britain has the fastest broadband network of any major European country by 2015.
  • Financial Times: Kingspan, which is the biggest supplier of building insulation in the UK and Ireland, said its pre-tax profit jumped to €44.5 million in the first half of 2012, up from €36.1 million in the same period a year earlier.
  • Daily Mail: Virgin has denied that its decision to launch the group’s first short-haul flight between London and Manchester is an attack on FirstGroup after the company lost the West Coast rail franchise to its London-listed rival.
  • Financial Times: OnLive, the provider of a revolutionary service for streaming and playing console-quality games over the internet, has announced a restructuring of the company that avoids bankruptcy but has led to the laying off of about half its 200-strong workforce.
  • Financial Times: Christian and Angie Littlewood, a former Dresdner Kleinwort banker and his wife, have been ordered to forfeit £1.5 million in benefits they received from repeated insider trading ahead of deals on which he was working.
  • Daily Mail: Potential bidders for the failed Allders department store, which include former owner Harold Tillman, are holding back as doubts plague plans for the Croydon site.
  • Financial Times: Barnes & Noble will launch its Nook ebook reader in the UK this autumn, marking the first time the US bookseller has expanded overseas in its 95-year history.
  • Financial Times: Free banking has been labelled a myth after research by consumer group Which? showed consumers are being hit by charges as high as £900 a year.
  • Financial Times: Godrej, the Indian consumer goods group, plans to establish operations in Pakistan and Myanmar, in a sign of deepening trade between India and two of its largest neighbours.

Share tips, comment and bids

  • Financial Times: Aetna said on Monday it will acquire Coventry Health Care for $5.7 billion in the latest sign of consolidation in the health insurance market, as it adapts to the Obama administration’s healthcare reforms.
  • Financial Times: China’s sovereign wealth fund China Investment Corp has invested in Cheniere Energy Partners’ planned plant exporting liquefied natural gas from the US, in the latest sign of Asian companies’ interest in North American energy assets.
  • The Guardian: Ryanair, the Dublin-based airline, has held discussions over taking a 25% stake in London Stansted Airport, which has a price tag of more than £1 billion.
  • Financial Times: George Soros, the billionaire hedge fund manager, has bought a near 8% stake in the listed shares of Premier League football club Manchester United.
  • The Guardian: The acquisition of the casino arm of the gambling firm Gala Coral by Malaysian billionaire Quek Leng Chan's Rank Group has been referred to the Competition Commission for scrutiny.
  • The Guardian (Comment): Freeing up 1% of the green belt could provide 300,000 homes. Time to lose our myopic nostalgia and send in the bulldozers.
  • The Guardian (Comment): It suits the Tory austerity narrative to blame 'idle' Britons for the recession rather than flaws in the modern labour market.
  • The Daily Telegraph (Comment): Banging on about illegal strikes is missing the point - Lonmin won't regain control of its only mining asset until it gives its workers no reason to walk out.
  • The Daily Telegraph (Comment): There is plenty of untapped potential in the UK economy; even with an improving labour market, unemployment is still nearly a million higher than official estimates of the “structural” rate.
  • Daily Mail (Comment – Alex Brummer): The Serious Fraud Office is back from the dead.
  • Financial Times (Lex): Aetna/Coventry: health insurance is a scale business, and when you get a chance to buy $400m in incremental pre-tax profit for $1bn, you take it.
  • Financial Times (Lex): UK airports: regulators have done Ferrovial a favour by forcing BAA to sell Edinburgh, Gatwick and now Stansted
  • Financial Times (Lex): Lonmin: the violent strike at Lonmin’s platinum mine has ended, but broader industry problems persist.
  • Financial Times (Lex): CME: the exchange group has been bulking up on staff and already has a clearing operation in London, so setting up in London makes sense and the timing is canny.

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FTSE 100 hands back gains as Bank turns hawkish

by Michelle McGagh on Jun 21, 2018 at 13:09

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