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Tuesday Papers: BoE's Tucker to face MPs over Libor scandal

And US manufacturing activity contracted for the first time in three years.

 
Tuesday Papers: BoE's Tucker to face MPs over Libor scandal

Top stories

  • Financial Times: Bob Diamond is threatening to reveal potentially embarrassing details about Barclays’ dealings with regulators if he comes under fire at a parliamentary hearing on Wednesday over the Libor rate-setting scandal.
  • Financial Times: US manufacturing activity contracted for the first time in three years, further denting confidence in a global economy that is already feeling the effects of the eurozone debt crisis and China’s economic slowdown.
  • The Guardian: Fears that food prices will rocket at the end of the year after a poor US harvest were heightened after predictions that a drought across the Midwest will to continue for at least another week.
  • The Daily Telegraph: Finland, one of the eurozone’s few remaining AAA-rated economies, has pledged to block Brussels’ celebrated plans to allow its new bail-out fund to buy sovereign bonds in the market.
  • The Independent: Paul Tucker, the deputy governor at the Bank of England, is set to face a grilling from MPs over the Libor rate-setting scandal.
  • Financial Times: Microsoft has owned up to the failure of an ambitious push five years ago to become a power in online advertising, revealing that it will take a $6.2 billion writedown on the business.
  • The Independent: George Osborne, the Chancellor, was wrong when he declared last week that HSBC was under investigation over Libor fixing, it emerged on Monday.
  • The Daily Telegraph: Barclays has said it will publish a report into how staff attempted to manipulate Libor as it attempts to repair its reputation in the wake of last week's revelations.
  • Financial Times: Total, the French oil group, confirmed it had discovered huge reserves of natural gas in the Caspian Sea, underscoring Azerbaijan’s status as a potentially key source of future gas supplies to Europe.
  • Financial Times: Apple has agreed to pay $60 million to settle a trademark dispute with Proview Technology (Shenzhen), which has spent the past two years trying to block the sale of the iPad in China.
  • The Independent: The property company Segro has splashed out €160.8 million for eight sites on the other side of the English Channel.
  • Financial Times: Airbus on Monday unveiled plans for its first US factory to make passenger aircraft, in a fresh sign of US manufacturing’s improving competitiveness.

Business and economics

  • Financial Times: Anglo American Platinum, the largest producer of the precious metal globally, has warned that first-half earnings could fall by more than a fifth.
  • The Guardian: Google may offer to change how it ranks other sites in its search engine listings to settle with the European commission's antitrust investigators over accusations that it has abused its dominant market position in search and online advertising.
  • Financial Times: The European Central Bank is widely expected to make an interest rate cut this week to try to invigorate the eurozone’s ailing economy after unemployment in the region climbed to a record high and a key survey of manufacturing showed the sector to be at its weakest in three years.
  • The Independent: France needs to push through €43 billion in budget savings over the next two years if President François Hollande is to meet his deficit reduction targets, the country's national audit office has said.
  • Financial Times: The Bank of England should fund small businesses directly through a network modelled on Germany’s regional lenders to restore economic growth in the regions, a report backed by local government and business leaders says.
  • The Daily Telegraph: Britain may lose its treasured AAA credit rating because the Government is failing to cut spending sufficiently, Jim Leaviss of M&G has said.
  • Financial Times: GlaxoSmithKline has agreed to pay a record $3 billion to settle US regulators’ charges of aggressive marketing and the selective use of data from clinical trials in its promotion of drugs.
  • The Daily Telegraph: Up to 100,000 customers of Ulster Bank are still unable to access their money, as the IT crisis that crippled the RBS network stretched into its 14th day.
  • Financial Times: General Electric, the US industrial group, has sold a commercial property lending business to Florida-based EverBank for $2.51 billion.
  • The Guardian: Turnover at Poundland, which is owned by the private equity house Warburg Pincus, climbed 21.6% to £780 million in the 53 weeks to 1 April, lifting underlying earnings 26.5% to £40.1 million.
  • Financial Times: Mark Allen, the former head of cotton at Glencore, has personally sued rival Louis Dreyfus Commodities, accusing the trading house of market manipulation.
  • The Independent: Shares in Goals Soccer shot up 7% to 136.5 pence on Monday amid hopes of a takeover battle as the company said Patron Capital had approached Goals and started due diligence on its books.
  • Daily Mail: Forbidden’s shares jumped 24% to 25.5 pence Monday on hearing that YouTube had signed up its services for ‘a major sporting event being held in London this summer’.
  • The Independent: Annual turnover of Auto Trader rose only 1% to £257.2 million, but digital sales, from the web and smartphones, jumped by 11% to £202 million.
  • Financial Times: Kawasaki Heavy Industries has taken the unusual move of asking Daiwa Securities to step down from its role as underwriter to the company’s bond issue, following revelations that the investment bank was the source of non-public information used in an insider trading case.

Share tips, comment and bids

  • Financial Times: Dell has laid the foundation for a broader move into software with a $2.4 billion all-cash acquisition of Quest Software.
  • Financial Times: Micron Technology, the US chipmaker, has agreed to acquire bankrupt Japanese rival Elpida Memory in a deal worth $2.5 billion.
  • The Independent: Invensys poured cold water on reports that it was the takeover target of China Southern Rail, which is majority-owned by the Chinese government.
  • Financial Times: European Commission, Europe’s top antitrust watchdog, has set out a sweeping list of objections to Universal Music’s £1.2 billion bid for EMI’s record labels.
  • The Guardian (Comment): A boom in oil production has made a mockery of our predictions. Good news for capitalists – but a disaster for humanity.
  • The Guardian (Comment): The unconstrained power of bankers acts like a drug on their brain's reward system, creating insatiable appetites.
  • The Daily Telegraph (Comment): What next for Barclays? Marcus Agius resigning was the right thing to do. But more broadly, not a lot has changed.
  • The Daily Telegraph (Comment): Virtually all financial scandals follow the same pattern. First there is the initial exposure of wrong doing, then comes the mitigating claim that it was common practice and everyone was up to it, and finally it emerges that the regulators knew all along but failed to act.
  • Financial Times (Lex): Linde/Lincare: the deal makes strategic sense and offers a lead position in a promising US market but synergies will be modest and price is an issue.
  • Financial Times (Lex): Coty: investors celebrating Bart Becht’s return to the stock market with the beauty products group should bear JAB Holdings in mind.
  • Financial Times (Lex): Petrobras: the real test for the oil and gas champion, with its new targets, is to turn potential into production at its vast pre-salt fields in the Atlantic.
  • Financial Times (Lex): French banks: the lenders should have acted ages ago, not now, when talk of their moves adds to uncertainty and a Greek exit is systemically risky.

2 comments so far. Why not have your say?

bigjohn

Jul 03, 2012 at 06:00

Put Mr Diamond 'under fire' at the parliamentary hearing. We want to hear him sing.

report this

David Chapman

Jul 03, 2012 at 09:56

Seems like Mr Diamond is indulging in a bit of blackmail against the House of Commons- call his bluff put him "under fire" and lets get all the dirty washing out - and if he IS indulging then thats an even bigger reason for him to be fired!!

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