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Tuesday Papers: Regulators hit at Bob Diamond

Britain’s economic outlook has deteriorated faster than any other major advanced economy, says the IMF.

Tuesday Papers: Regulators hit at Bob Diamond

Top stories

  • Financial Times: Bob Diamond, ex-chief executive of Barclays, suffered another bruising on Monday, as regulators lambasted his “misleading” behaviour, and his former chief operating officer directly contradicted his account of the Libor-rigging scandal.
  • Financial Times: Britain’s economic outlook has deteriorated faster than any other major advanced economy, according to the IMF.
  • Financial Times: BP’s longstanding stake in Abu Dhabi’s huge onshore oil concession is in doubt after the UK group was excluded from a list of companies invited to bid to be part of a renewed deal in 2014.
  • Financial Times: HSBC ignored warnings that its activities may have possibly exposed the US financial system to drug money from Mexico and inadvertently provided banking services to lenders suspected of links to terrorist organisations, Senate investigators have claimed in a new report.
  • The Daily Telegraph: Moody's cut its rating for 13 Italian banks Monday evening, citing the weakened borrower standing of the Italian government after its credit grade was downgraded last week.
  • Financial Times: Jerry del Missier appeared to contradict the evidence of his boss Bob Diamond on Monday when the ex-chief operating officer of Barclays told MPs that he “passed instructions along” to take actions that would lower the bank’s submission to the Libor rate-setting panel.
  • Financial Times: Marissa Mayer, a long-serving Google executive, has become Yahoo’s fifth chief executive in four years to step up to the challenge of turning around the struggling web portal.
  • The Independent: National Grid yesterday attacked the energy regulator and its £22 billion investment plan, saying Ofgem's proposals to upgrade the UK's energy infrastructure lacked "the essential investments to provide safe, reliable networks".
  • Financial Times: David Brennan, former chief executive of AstraZeneca, has been awarded a severance package worth as much as £4.5 million following his ousting by angry investors during the recent wave of shareholder discontent.
  • The Guardian: Shares in G4S slumped by 9% on Monday morning in the wake of the furore over the company's admission that it cannot provide enough security guards for the Olympics.
  • Financial Times: Citigroup has reported a 12% year-on-year decline in net income to $2.9 billion, but earnings per share fell only 2% to $1 compared with analysts’ expectations of 89 cents.
  • The Daily Telegraph: Tullow Oil shares lost 47 pence to end at £13.86 on Monday as the oil exploration group plugged and abandoned a well off the coast of French Guyana.
  • The Guardian: Greenpeace activists shut down 74 Shell petrol stations in Edinburgh and London in a protest against the company's plans to drill for oil in the Arctic that saw 24 campaigners arrested on Monday.

Business and economics

  • Daily Mail: Robert Bready, product director at ASOS, has sold his entire shareholding in the online fashion store just days after rumours swirled around the City that he was planning to leave.
  • The Guardian: Falkland Islands explorer Borders & Southern has been forced to abandon its biggest prospect off the south coast of the islands because it could not drill deep enough, sending shares plunging 70%.
  • Daily Mail: Marks and Spencer, which is set to open 20 in-store banking branches before the end of the year, has revealed that a staggering 46,000 jobseekers applied for just 200 roles in the new operation.
  • The Guardian: A federal jury in San Francisco has found Research In Motion liable for $147 million in damages for infringing on patents held by US software company Mformation Technologies.
  • Financial Times: In an update to its regular World Economic Outlook, the IMF has cut its 2012 growth forecast slightly to 3.5% but warned that its outlook depends on rapid policy action.
  • Financial Times: Microsoft has taken another big step towards overhauling its business to deal with the whirlwind ripping through the technology world, unveiling a new version of its Office suite of software applications designed from the ground up to work on touchscreen tablets and live in the cloud.
  • Financial Times: Google has submitted a revised package of concessions to address the concerns of Europe’s top competition authority, bringing the talks to settle the EU antitrust investigation to a critical juncture.
  • The Daily Telegraph: Ryanair has made an opportunistic move to quash the UK Competition Commission’s investigation into its 29.8% stake in Aer Lingus.
  • The Independent: 99p Stores, the single-price retailer, has vowed to create 3,000 new jobs over the next two years as it posted a 14% leap in pre-tax profits to £7.2 million over the year to 31 January, on turnover up 17% to £270 million.
  • Financial Times: Benchmark European rapeseed futures for August delivery rose as much as 1.8% to a peak of €526.25 a tonne on Monday, surpassing previous peaks touched in early 2011 and during the 2007-08 food crisis.
  • The Daily Telegraph: Germany's Constitutional Court will keep Europe waiting until September 12 for its verdict on whether the new tools for fighting the eurozone debt crisis comply with German law or violate parliament's right to decide on national budget issues.
  • Financial Times: The World Trade Organisation has ruled that China discriminates against foreign electronic payment providers, handing the US its latest victory in a trade dispute over market access in the Asian nation.
  • The Daily Telegraph: BBC has sold TV Centre to property developers Stanhope for £200 million.
  • Financial Times: European mobile operators are stockpiling an innovative miniature Sim card designed for next generation smartphones for use in Apple’s eagerly awaited iPhone 5.
  • Financial Times: Nathan Tinkler’s $5.35 billion buyout proposal for Whitehaven Coal has received a cautious response from investors with shares in the mining company trading at a large discount to the proposed offer price.
  • Daily Mail: Sports car manufacturer Caterham has reported a 32.4% fall in pre-tax profits to £637,000 last year.
  • The Independent: The head of Royal Bank of Scotland's Ulster Bank said it will pay out "tens of millions" of euros in compensation following a computer systems fiasco.
  • The Daily Telegraph: John Menzies is closing its cargo operations at four regional airports in the UK amid a drop in demand for transporting goods by plane.
  • Financial Times: Shares in 1PM, the Bath-based asset finance company, fell close to 5% after it released its full-year results, despite revenues rising by a fifth to £2.31 million and profits doubling to £436,000 in the year to May.

Share tips, comment and bids

  • Financial Times: GlaxoSmithKline is to acquire Human Genome Sciences for $3 billion, bringing to an end a three-month hostile battle for control of the US biotech group best known for its pioneering drug for lupus.
  • The Daily Telegraph: Shell has shocked investors by effectively pulling out of the race for Cove Energy, clearing that way for rival bidder PTT Exploration and Production to win the day.
  • Financial Times: TPG, the private equity group, has acquired Par Pharmaceuticals for $1.9 billion, marking the latest deal in the increasingly active healthcare sector.
  • The Daily Telegraph: Private equity firm Cinven has held a selection process for investment banks to oversee the £1 billion flotation of its pension company Partnership Assurance.
  • Financial Times: Sir Richard Branson is considering joining a bid for Virgin Records, the business with which his Virgin Group began, if Universal Music sells the EMI-owned label to secure regulatory approval for its £1.2 billion takeover of the British music group.
  • The Independent: The private equity firm co-founded by Luke Johnson, the entrepreneur and former chairman of PizzaExpress, has submitted a final-round bid to acquire part of Pizza Hut UK.
  • The Guardian (Comment): Greece won't be able to make its austerity policies stick and, as the global depression worsens, will have to leave the eurozone.
  • The Guardian (Comment): Europhiles have contributed to the euro crisis by trying to create a European polity by the back door.
  • The Daily Telegraph (Comment): It'll take a while to see if G4S chief executive Nick Buckles weathers the storm.
  • The Daily Telegraph (Comment): The IMF’s latest “World Economic Outlook” makes for chilling reading. A perfect storm in which all parts of the world economy go down together seems fast to be gestating somewhere out in the mid-Atlantic.
  • Daily Mail (Comment – Alex Brummer): The eurozone has delivered a severe jolt to fragile confidence and, with the passage of time, it has become clear that hopes that austerity in government would create room for growth in the private sector have not been met.
  • Financial Times (Lex): Yahoo: it is hard to imagine that Yahoo could find a much stronger candidate than Marissa Mayer but equally difficult to see how much difference she can make.
  • Financial Times (Lex): Citi results: banking on the urbanisation of consumers in developing regions rather than mature markets could be a winning strategy.
  • Financial Times (Lex): Cove Energy/Shell: investors should be pleased that the multinational demonstrated pricing discipline in the face of an escalating bidding war.
  • Financial Times (Lex): G4S: shares are trading at 11 times forecast earnings. Not bad for a company with a proven ability to create share price growth in the face of PR disasters.

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The Accumulator: FTSE see-saws on trade war fears

by Michelle McGagh on Jun 22, 2018 at 14:57

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