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Tuesday Papers: Oil and iron ore surge points to new mood

And the Bank of England plans liquidity auctions to protect banks in the event of Brexit.

 
Tuesday Papers: Oil and iron ore surge points to new mood

Top stories

  • Financial Times: Oil on Monday jumped back above $40 a barrel for the first time this year and iron ore saw its largest one-day gain on record, as more traders bet that the worst of the 20-month commodity rout is over.
  • Financial Times: The Bank of England is preparing to protect British banks from running out of funds in the event of a Brexit vote by flooding them with a wall of money in the latest sign of the authorities’ nervousness surrounding the EU referendum.
  • The Daily Telegraph: BHS has warned its creditors that they stand to lose as much as £1.3 billion if they do not agree to a drastic turnaround plan this month.
  • The Daily Telegraph: The competition regulator has called for a radical overhaul of Britain’s railways that would see intercity franchises eventually scrapped in favour of a new system where a number of train companies offer rival services.
  • The Times: Burberry is trying to find out the identity of a mystery investor who has built up a stake of about 5% in the luxury retail group.
  • Financial Times: The average bonus paid on Wall Street slipped 9% last year to $146,200, as banks hired more staff and tried to cap pay amid a surge in compliance costs and volatile trading activity.

Business and economics

  • Financial Times: Hong Kong and China will remain locked on a collision course unless both sides can make tough compromises, Hong Kong delegates have warned on the sidelines of China’s annual legislative sessions in Beijing.
  • The Independent: Norway has taken money from its sovereign wealth fund for the first time since it was set up in 1996.
  • Financial Times: Microsoft is taking its biggest step beyond the Windows operating system since chief executive Satya Nadella started a rethink of its core software strategy two years ago.
  • Financial Times: JP Morgan Chase, one of the world’s biggest banks, is to stop direct financing of all new coal mines and new coal power plants in rich countries in the wake of the global climate accord agreed in Paris in December.
  • The Guardian: The British and French governments have insisted the Hinkley Point nuclear plant is on track, despite fresh doubts emerging over the £18 billion project after an executive row at its main backer, EDF Energy.
  • The Guardian: More than a third of an £8.4 million loan taken out of BHS by its new owners in March last year went to four directors who were part of the consortium, handing them a multimillion-pound windfall just days after buying the struggling department store chain.
  • Financial Times: Barclays has bolstered its European corporate finance business with a veteran Italian dealmaker and eight of his colleagues even though the UK bank is scaling back its global ambitions.
  • Financial Times: A power struggle between Libyan political factions has entered a new phase with the decision that an English judge should rule on who is the lawfully appointed chairman of the Libyan Investment Authority.
  • Financial Times: Apple has lost its final attempt to overturn a judgment that it broke antitrust laws by conspiring to raise ebook prices in the iPhone maker’s latest bruising encounter with the US judicial authorities.
  • The Times: Accusations that the professional and financial services sectors are a closed shop for the privileged few have prompted Deloitte to hit back with figures that it says “show that everyone can thrive, develop and succeed in our firm”.
  • Financial Times: Just Eat, Europe’s largest takeaway ordering website by sales, was one of the biggest fallers on the UK’s FTSE 250 index on Monday, after it revealed that its two top executives had sold a large chunk of their shares in the company.
  • Financial Times: Trading of shares in ZTE was suspended in Hong Kong and Shenzhen after news of a US investigation into whether China’s second-largest telecommunications equipment maker violated US controls on exports to Iran.
  • The Times: Trading in Petroceltic shares was suspended yesterday after its biggest shareholder applied to appoint administrators.
  • The Guardian: A complex tax avoidance scheme being used by transport group Stagecoach to wipe £11 million off its tax bill has been defeated in the tax courts.
  • The Guardian: Disney’s Zootopia is on course to be 2016’s biggest animated movie after smashing Frozen’s opening record at the US box office.
  • The Guardian: Fastjet, the African budget airline backed by Sir Stelios Haji-Ioannou, said it may need to raise funds this year after low demand for flights forced it to issue a second profit warning in less than three months.
  • The Independent: Beales, the struggling department store chain, is asking some of its landlords to cut rents by 70% in an effort to keep branches open.
  • The Independent: Hilton Worldwide, which has 35 hotels across the capital, has unveiled plans to launch a £76 million hotel development in East London.

Share tips, comment and bids

  • The Daily Telegraph (Questor share tip): Brexit risks loom for UK investors.
  • Financial Times: Metro Bank rose 7.5% in its first day of “grey market” trading increasing from £20 per share to £21.50.
  • Financial Times: The property arm of Singapore’s state investment fund Temasek has bought a portfolio of UK student accommodation for £417 million in its first venture into the increasingly popular sector.
  • Daily Mail: Americans are set to raise stakes for LSE as New York Stock Exchange owner hopes to blow £20 billion Deutsche Boerse bid out of the water.
  • The Guardian: British American Tobacco is bucking the downward market trend following weekend reports the company could be on the acquisition trail.
  • The Times: An acknowledgement by Old Mutual that it is considering a break-up and the sales of several of its key businesses prompted a flurry of interest in the insurer both in the City and beyond yesterday.
  • Financial Times (Comment): China bears could start to feel isolated.
  • The Times (Comment): The cure for financial crisis is in danger of distorting the economy.
  • The Independent (Comment): The current vogue for share buybacks could lead to trouble in the future.
  • The Independent (Comment): Saudi Arabia versus the great oil stockpile.
  • The Daily Telegraph (Comment): Draghi may have to throw money out of a helicopter.
  • The Daily Telegraph (Comment): Exactly why is big business so in favour of the EU?
  • Financial Times (Lex): US Cable TV: Pay-TV mergers are not easily completed in the US.
  • Financial Times (Lex): BASF: don’t just do something, sit there.
  • Financial Times (Lex): EDF: fit of pique.
  • Financial Times (Lex): Mediclinic: as Old Mutual considers a break-up, another South African group joins the FTSE 100.

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Investment Trust Watch: India Capital Growth in limbo

by Gavin Lumsden on Jul 22, 2016 at 16:24

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