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Tuesday Papers: EU and Fed clash over US bank move

And Google’s Motorola unit loses another key battle over intellectual property against Apple.

Tuesday Papers: EU and Fed clash over US bank move

Top stories

  • Financial Times: US plans to force foreign banks to hold more capital are a threat to harmonious global regulation and risk “a protectionist reaction”, Michel Barnier, EU commissioner in charge of financial services, has warned.
  • Daily Mail: The hole in the UK budget was among the biggest in Europe last year as the country sank deeper into the red, official figures showed on Monday.
  • Financial Times: Google’s Motorola unit has lost another key battle over intellectual property against Apple after the US International Trade Commission ruled that a smartphone sensor patent was invalid.
  • The Guardian: Google's chairman, Eric Schmidt, has defended the search engine's tax avoidance policies, saying "we fully comply with the law" after paying just £6 million in corporation tax in the UK.
  • Financial Times: Twitter has taken a big step on to traditional media turf by signing its biggest advertising deal with Publicis’s Starcom MediaVest Group, one of the world’s leading ad-buyers, according to people familiar with the matter; the deal is worth hundreds of millions of dollars.
  • Financial Times: The US Department of Justice’s civil lawsuit seeking more than $5 billion from Standard & Poor’s for allegedly inflating ratings on mortgage securities should be thrown out because it is “a stretch” based on flawed legal theories, the rating firm said on Monday.
  • The Independent: The US Supreme Court has ordered a lower court to reconsider a ruling that would have required Rio Tinto to defend against a lawsuit accusing it of contributing to genocide in Papua New Guinea - which it denies.
  • Financial Times: The Financial Conduct Authority, a new UK financial watchdog, has intervened in a test case involving allegations that the Royal Bank of Scotland mis-sold interest rate swaps to small businesses.
  • Financial Times: Airbus made further inroads into British Airways’ long-haul fleet on Monday when the airline announced plans to buy 18 of the European manufacturer’s planned new A350 wide-body passenger jets in a $6 billion deal.
  • Financial Times: Tesco is preparing to shake up the £12 billion retirement income market by launching an online comparison service for pensions.
  • Financial Times: Libor borrowing rates must be replaced soon as possible as it was “unsustainable” to continue to use them, Gary Gensler, head of the Commodity Futures Trading Commission, the top US regulator overseeing a global effort to reform the benchmarks for global financial markets, has urged.
  • The Guardian: Boeing has begun repairs to its troubled 787 Dreamliners to fix the battery problem that grounded the entire fleet of 50 planes and suspended deliveries.
  • Financial Times: News Corp looks set to reap a sizeable payout from the $139million settlement of a class-action lawsuit that alleged that directors harmed shareholders by letting Rupert Murdoch use the company he chairs as “his personal fiefdom”.
  • Financial Times: Bumi, the Indonesian coal miner founded by Nat Rothschild, has suspended its shares as it tries to account for tens of millions of dollars in payments to local landowners.
  • The Independent: Barclays' chairman Sir David Walker further strengthened the non-executives on the bank's board on Monday with two major appointments; the head of Starwood Hotels and Resorts Frits van Paasschen will join in August and Michael Ashley, head of quality and risk management at accountants KPMG, in September.
  • The Daily Telegraph: Customers of fashion retailer Republic have lost £1.2 million in gift vouchers after the company collapsed into administration.
  • The Independent: Lloyds Banking Group issued £350 million worth of new shares on Monday as part of its continuing strategy to improve its balance sheet.

Business and economics

  • Financial Times: Europe may have hit the political limits of how far it can go with austerity-led economic policies because of the growing opposition in the eurozone’s recession-hit periphery, the European Commission’s President José Manuel Barroso said on Monday.
  • The Daily Telegraph: The Archbishop of Canterbury, the Most Rev Justin Welby, has called for Britain to "break up" one of its biggest banks to create a series of regional lenders; the idea chimes with those who want the government to use its stakes to break up RBS and Lloyds.
  • Daily Mail: The euro is overvalued versus the US dollar, according to Russian billionaire Oleg Deripaska, and the single currency’s continuing high value is stifling growth and putting off investment in the eurozone.
  • Financial Times: Bill Gross, manager of the world’s largest bond fund for Pimco, has criticised efforts by Britain and much of the eurozone to cut debt rapidly with severe austerity measures, warning that such action risks stifling recovery.
  • The Daily Telegraph: Luc Frieden, finance minister of Luxembourg, has thrown his weight behind Britain’s legal challenge of Europe’s controversial financial transactions tax.
  • Financial Times: India’s Congress-led government is providing the kind of high-level security normally reserved for top politicians to Mukesh Ambani, the country’s richest man, after the industrialist received credible threats to his life.
  • Financial Times: A bill designed to end tax-free online shopping in the US moved towards a vote in the Senate after winning enough bipartisan support from lawmakers to pass a procedural hurdle late on Monday; the bill would enable states to collect the same sales tax from online shoppers that they already collect from mall shoppers.
  • Financial Times: Regulators cannot solve the problem of banks that are “too big to fail” unless there is an expansion of international co-operation and sharing of inspection data, William Dudley, president of the New York Federal Reserve warned.
  • Financial Times: Asia is witnessing one of the strongest waves of physical gold buying in 30 years, with bargain hunters using the drop in prices to secure jewellery and gold bars.
  • Financial Times: Some 87% of small British businesses and 93% of large organisations experienced at least one kind of cyber security breach in the past year, according to a report by the Department for Business, Innovation and Skills issued on Tuesday.
  • Financial Times: The market for semiconductor manufacturing equipment shrank by 16% in 2012 amid a glut of memory chips and continued uncertainty in the sector.
  • The Independent: Halliburton is in talks to settle private claims against it in a trial to decide how to allocate blame for the 2010 Gulf of Mexico spill, the US oilfield services giant said on Monday as it took a $1 billion pre-tax charge for a possible deal.
  • The Daily Telegraph: AstraZeneca is to pay biotech company Bind Therapeutics up to $200 million to develop a cancer medicine.
  • The Independent: Caterpillar said first-quarter profit was $880 million, down 45% on a year ago; sales fell 17% to $13.2 billion.
  • The Guardian: Mayfair investment tycoon Vincent Tchenguiz has settled a dispute with a band of former Israeli intelligence operatives who had been at the heart of his activities; Tchenguiz was accused of breaching a contract and leaving £330,000 in bills unpaid.
  • Financial Times: Delayed investment in telecoms networks, including 4G, has led Spirent to report first-quarter sales of $96.8 million, the lowest in more than a decade.
  • Financial Times: Brian O’Cathain, chief executive of Petroceltic International, said the agreement of a $500 million debt facility this month would be followed by a sell-down of part of its 56% stake in an Algerian gasfield.
  • The Guardian: Last year's disastrous summer has forced Weetabix to halt production of Minis and Oatibix, after the company exhausted its supply of high quality British wheat following what it described as the worst harvest in decades.
  • The Daily Telegraph: Asda is planning to introduce a same-day grocery delivery service as part of a £700 million investment drive in the UK.
  • The Independent: Hermès has reported first-quarter sales of €856.8 million, up 10.3% on the same period a year ago, with Asia, excluding Japan, showing a 17% rise.
  • Financial Times: Netflix shares rose almost 25% in after-market trading on Monday as the film and TV subscription service beat forecasts for the first quarter and added 3 million new subscribers.
  • Financial Times: Shares in Snoozebox plummeted 18% on Monday after the pop-up hotel group issued a profit warning and said it was delaying maiden full-year results a day before they were due.
  • The Independent: Higher demand for bathroom-cabinet and bedside-drawer staples from Strepsils to Nurofen and Durex helped Reckitt Benckiser post 7% hike in revenues to £2.5 billion in the first three months of the year.
  • Financial Times: The flurry of UK flotations in recent months has failed to persuade Towergate to follow suit after an annual interest bill of almost £100 million kept the privately owned insurance intermediary in the red.

Share tips, comment and bids

  • The Guardian: The British government will embark on a sale of government assets, starting with some or all of its £3 billion stake in the uranium-enrichment company Urenco.
  • Financial Times: Brazil’s two largest private tertiary education companies -- Kroton Educacionaland Anhanguera Educacional Participações -- have agreed to combine in a private equity-backed deal that will create the world’s biggest for-profit operator by market capitalization; Kroton will pay $2.48 billion for rival Anhanguera.
  • The Daily Telegraph: ITV has made its fifth acquisition in just nine months, agreeing to pay at least £18 million for The Garden, an independent TV production company behind programmes such as 24 Hours in A&E and Inside Claridge's.
  • The Independent: Dixons Retail is to offload Webhallen, a Swedish retailer of games and media products, to Komplett, the Norwegian online firm, for £14.1 million.
  • The Independent: Retail rivals Sports Direct and JD Sports Fashion are limbering up to submit bids to acquire the group behind the Bench clothing brand, Americana, for up to £100 million.
  • The Guardian (Comment): Those pressing for a yes vote in next year's referendum on Scottish independence need to convince voters that the country will prosper under a new currency and macro-economic regime.
  • The Guardian (Comment): This rich list leaves a sour taste – divorce shouldn't be treated as the ultimate cash prize in a particularly complex gameshow.
  • The Daily Telegraph (Comment): This economic funk won’t go away until the eurozone crisis is fixed.
  • Daily Mail (Comment – Alex Brummer): Views of Bush are generally coloured by the Iraq war but when it comes to the economy it is worth reflecting that he was a president who dealt with Congress and things were done.
  • Financial Times (Lex): Netflix can feel good that it has shaken the backlash from its ill-fated price increase in 2011. Streaming video is very much for real.
  • Financial Times (Lex): Caterpillar: the worry is that some investors are harbouring hope of a near-term rebound in results; when it doesn’t come, the shares could be hit.
  • Financial Times (Lex): Banco Bradesco: the management has shown some acumen. But the bank’s biggest problem is Brazil itself, which is a tougher nut to crack.
  • Financial Times (Lex): Philips: how much should investors worry? Philips’s story has been more about bottom-line profits than top-line sales recently, as confidence in a big, cost-focused overhaul has risen.

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The Accumulator: oil's rally sparks Trump anger

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