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Tuesday Papers: Eurozone’s Greek poll honeymoon short-lived

Investors ratcheted up the pressure on policymakers by sending Spain’s benchmark borrowing costs to a new euro-era high.

 
Tuesday Papers: Eurozone’s Greek poll honeymoon short-lived

Top stories

  • Financial Times: The election victory for pro-austerity parties in Greece failed to assuage fears over the eurozone’s future, as investors ratcheted up the pressure on policymakers by sending Spain’s benchmark borrowing costs to a new euro-era high.
  • Financial Times: The Serious Fraud Office has abandoned its long-running probe into property tycoon Vincent Tchenguiz, ending an error-strewn investigation that has dented the reputation of the UK fraud agency.
  • The Guardian: Tesco is paying rival Japanese supermarket operator Aeon a £40 million dowry to take its loss making chain off its hands.
  • Financial Times: The Children’s Investment Fund, the activist hedge fund manager, has called on regulators to force Lloyds Banking Group to bolster the bank’s capital reserves.
  • The Daily Telegraph: The prospect of new nuclear power stations being built in the UK for the first time in 20 years has moved a significant step forward after EDF Energy awarded a £2 billion contract to build a plant at Hinkley Point in Somerset.
  • Financial Times: Microsoft has made a belated entrance into tablet computing and a market dominated by Apple’s iPad with the unveiling of the Surface, a device it said would merge the best of PCs and mobile computing.
  • Financial Times: Oracle’s fourth-quarter revenues nudged up 1% to $10.9 billion, partly due to a rising US dollar and declining hardware sales at the technology group.
  • The Independent: The Economist Group has showed there is still money in quality journalism as pre-tax profits surged by 8.7% to £64.7 million in the year to March.
  • Daily Mail: Pay reports released by Homeserve and London Stock Exchange Group showed that despite the increase in shareholder revolts over lavish reward deals, top executives are still receiving multi-million pound packages.
  • Financial Times: The cost of insuring against a Spanish debt default jumped 27 basis points to 622bp, equating to annual costs of $622,000 to insure $10 million of debt for five years.
  • Financial Times: Iranian oil exports have dropped sharply this month as an imminent insurance ban on tankers carrying the country’s crude puts off buyers.

Business and economics

  • The Guardian: The Federal Reserve could step in with a new round of Operation Twist this week to bolster the fragile American recovery as Europe's woes continue to rattle the US economy.
  • Financial Times: Russia is setting aside up to $40 billion for this year and next to shore up the economy in case the crisis in the eurozone escalates and spreads.
  • The Independent: Rolls-Royce has signed a contract worth more than £1 billion with the Government to make reactor cores for the UK's next generation of nuclear-powered submarines.
  • The Guardian: PricewaterhouseCoopers says 180 of Essex oil refinery's 500 permanent staff will be made redundant next week.
  • Financial Times: Yahoo has appointed Michael Barrett, a veteran online advertising industry executive, as chief revenue officer.
  • Financial Times: Michael Francis, JC Penney’s president, is leaving the department store after it posted a 19% fall in quarterly sales.
  • The Guardian: The troubled hedge fund group Man has replaced its finance director with Jonathan Sorrell, one of the sons of the WPP boss Sir Martin Sorrell.
  • Financial Times: Haier, the world’s leading appliance maker by sales volume and one of China’s most famous brands, plans to expand in Europe by acquiring or building production facilities that will bring it closer to EU consumers.
  • The Daily Telegraph: Clarks Shoes, one of Britain's biggest family-owned companies, has been hit by "work-to-rule" industrial action over pay.
  • Financial Times: The Japanese finance ministry said on Monday that it had chosen Daiwa Securities and Mizuho Securities as underwriters for the domestic tranche and Goldman Sachs and JPMorgan for the international tranche of its planned sale of about $6 billion in Japan Tobacco.
  • The Daily Telegraph: Guardian Media Group saw losses widen to about £45 million last year, as the publisher of the Guardian and Observer newspapers counted the cost of its expansion in the US.
  • Financial Times: A group of Irish nuns is close to reaching a settlement with Morgan Stanley after suing the US bank in a dispute about losses they incurred from an investment in euro-denominated notes.
  • The Guardian: Majestic Wine toasted a 14% jump in profits as Britons splashed out on fine wine to drink over dinner at home rather than fork out on a trip to a restaurant.
  • Financial Times: Nigeria needs an additional $4 billion to maintain its controversial fuel subsidy in 2012 after the federal government spent more than half this year’s allocated budget for the subsidy plugging holes from 2011.

Share tips, comment and bids

  • Financial Times: Facebook has acquired Face.com, an Israeli facial recognition group.
  • The Daily Telegraph: Vodafone moved closer to taking over Cable & Wireless Worldwide after 88% of investors voted to accept an £1.04 billion offer which will create Britain's second largest telecoms operator.
  • The Guardian: Former Everything Everywhere chief executive Tom Alexander's daring £8 billion bid for his ex-employer, the UK's largest mobile phone company, could take the form of a joint venture with France Telecom.
  • The Daily Telegraph: The industrial turnaround specialist Melrose has confirmed it is in talks with one of the world's largest makers of gas and water meters about a $2.3 billion takeover.
  • The Independent: The Lloyd's of London insurer Brit Group has sold its Brit Insurance subsidiary to Canada’s Fairfax Financial in a deal worth about $300 million.
  • Financial Times: Kohlberg Kravis Roberts has agreed to buy Prisma Capital Partners, a fund of hedge funds manager, in a move that will see the private equity group’s assets under management increase by 10%.
  • Financial Times: Quintain, the London-focused property developer, has said Hong Kong billionaire Henry Cheng Kar-Shun’s Dragon investment vehicle had taken on a 60% stake in its £3 billion Greenwich Peninsula development.
  • The Independent: Lord Bell's £19.6 million buyout of the PR firm Bell Pottinger has got the green light after 75% of shareholders in its parent Chime Communications backed it – despite Chime's largest investor WPP voting against.
  • Financial Times: Nelson Peltz’s Trian Partners has taken a $150million stake in Lazard, the investment bank, calling the shares “significantly undervalued”.
  • Financial Times (Comment): In the absence of a miraculous recovery in growth, the eurozone periphery desperately needs lower funding costs – and fast.
  • The Guardian (Comment): Faced with a crisis almost as grave as war, social democrats must act in concert to end the toxic policies of austerity.
  • The Guardian (Comment): The Bank of England governor is probably the man most responsible for getting Britain out of recession. So can he do it?
  • The Daily Telegraph (Comment): G20: don't expect any solutions from the international junketing in Mexico.
  • The Daily Telegraph (Comment): You've got to hand it to Melrose. What better time to bid for a hot-air metering specialist?
  • Daily Mail (Comment – Alex Brummer): Germany’s game of chicken is damaging the real economy.
  • Financial Times (Lex): Private jets: orders for up to 425 new aircraft would seem to indicate the industry is finally out of the murk of the recession, but the outlook is far from clear.
  • Financial Times (Lex): Itaú-Unibanco: the bank’s offer price might look full as the credit cycle heads towards a peak but there are some compelling growth prospects in a Redecard deal.
  • Financial Times (Lex): Melrose/Elster: the turnround specialist’s interest in the meter maker has its merits but the signalled price does not look cheap and there is debt to consider.
  • Financial Times (Lex): Greece: the latest election has relegated Athens to a sideshow in the bloc’s crisis – centre stage is the viability of the single currency.

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