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Tuesday Papers: Top US financial groups hold secret summits

And Google overtakes Apple as world's most valuable listed company.

Tuesday Papers: Top US financial groups hold secret summits

Top stories

  • Financial Times: The world’s largest asset managers have held secret summit meetings to hammer out proposals for improving public company governance to encourage longer-term investment and reduce friction with shareholders.
  • The Guardian: Google has become the world’s most valuable listed company after announcing that its global revenues rose 13% to $75 billion (£52 billion) last year, and the group’s tax rate fell to just 17%.
  • The Daily Telegraph: China is rapidly losing the confidence of global lenders and capital outflows risk turning virulent if the current policy paralysis continues, the world’s top banking body has warned.
  • Financial Times: A proposal to use new technology to edit the genes of the youngest of human embryos - the first such experiment outside China - has been approved by the UK regulator.
  • The Daily Telegraph: EasyJet is planning to become the first airline in the world to test a so-called hybrid plane, which uses hydrogen fuel cells that could potentially cut the company’s fuel bill by as much as $35 million.
  • Financial Times: Shares in Luxottica fell sharply on Monday on news that the luxury eyewear group has lost its third chief executive in 18 months.
  • Financial Times: Russia is lining up seven major state companies, including Aeroflot, Alrosa, the diamond miner, and Rosneft, for potential privatisation as the Kremlin debates drastic options to replace dwindling oil revenues.

Business and economics

  • Financial Times: Julius Baer has warned that European Central Bank moves to push interest rates deeper into negative territory could force it to impose charges on private investors’ euro deposits.
  • The Daily Telegraph: Global market turmoil has the potential to weaken US economic growth and inflation, Federal Reserve Vice Chair Stanley Fischer said.
  • Financial Times: Hundreds of thousands of homeowners in the most flood-prone parts of Britain will have access to cheaper insurance following a £2.1 billion reinsurance deal.
  • Financial Times: Anne Richards, chief investment officer of the Scottish fund company, Aberdeen Asset Management, is to join M&G Investments, the asset management arm of UK insurer Prudential, as its first female chief executive.
  • Financial Times: BP’s Bob Dudley has promoted two senior executives into top roles in a move seen by UK investors and analysts as preparing the ground for his possible retirement.
  • Financial Times: BT chief executive Gavin Patterson let slip a telling reference to the “old BT” during the company’s third-quarter results presentation that detailed how much will change after its acquisition of EE and sent shares up to a near 15-year high at almost £5.
  • The Independent: The proposed merger between O2 and Three could push up mobile phone bills for users, according to Sharon White, head of communications watchdog Ofcom.
  • Financial Times: Malaysian state investment funds are cashing out of lofty positions in the London property market, in a sign of the country's growing financial woes as it grapples with claims of multibillion-dollar corruption involving government companies.
  • The Daily Telegraph: Shares in Twitter leapt more than 11% at one stage on Monday amid reports that the company may be a takeover target for private equity group Silver Lake and famous Silicon Valley investor Marc Andreessen.
  • Financial Times: Saipem, the Italian oil services group, has filed a €759 million claim against Gazprom following the cancellation of the South Stream project to pipe Russian gas to Europe.
  • The Independent: More than 20 people have been arrested by the Chinese police in relation to a “Ponzi scheme” that reportedly took some 50 billion yuan ($7.6 billion) from nearly 1 million investors.
  • The Guardian: The founder of easyJet has opened a discount food store that is selling everyday groceries for 25p each.
  • Daily Mail: More than 350 management roles at Boots will be lost as part of the health and beauty group’s cost saving plan.
  • Financial Times: Investors in Sony added $3.3 billion to its market value on Monday, sending shares up 12% after the company reported robust earnings.
  • Financial Times: Shares in Nokia dropped to their lowest level in almost six months after the financial terms of a deal to share its mobile phone patents with Samsung disappointed investors.
  • Financial Times: Shares in Spain’s Telefónica fell yesterday after the British telecoms regulator called for Brussels to block the proposed merger of its UK business with Hong Kong’s CK Hutchison’s Three.
  • The Guardian: Despite the falling crude price, Premier Oil shares have surged after an update on its deal with Eon.
  • The Daily Telegraph: IEX, which was founded in 2013 and won plaudits in the Michael Lewis book Flash Boys, is seeking permission to operate as a fully-fledged stock exchange, giving it greater access to the investing industry than its current status as a dark pool.
  • Financial Times: Concord Resources, a newly formed trading house that has launched into one of the worst commodity slowdowns in more than a decade, has secured a $250 million credit line from a subsidiary of Goldman Sachs.
  • Financial Times: Smith & Nephew says chief executive Olivier Bohuon has been diagnosed with cancer but would remain in his post while undergoing treatment.
  • Financial Times: UBS has hired a former Brevan Howard partner to advise its ultra-wealthy family office clients on the market impact of the US Federal Reserve’s withdrawal from its post-crisis policy of ultra-low interest rates.
  • The Guardian: Morrisons is to cut the prices of more than 1,000 products as the supermarket price war continues.

Share tips, comment and bids

  • Financial Times: Despite suffering a sharp sell-off in January, global healthcare companies’ appetite for mergers and acquisitions is far from over as deal activity has more than doubled to $56 billion compared with a year ago.
  • Financial Times: Ryanair plans to return €800 million to investors through its largest ever share buyback, highlighting how Europe’s leading budget airline has made significant progress to overhaul its aggressive image and poor customer service.
  • Financial Times: Vallourec has announced plans to halve its European production capacity and raise about €1 billion from selling equity as the French steel manufacturer becomes the latest victim of falling energy prices.
  • The Independent: The wealthy Indian Gupta family, which owns Liberty House Group and Simec, is looking at plans to float a minority stake in its international steel-to-industrial empire that could value the business at $1 billion.
  • Financial Times (Comment): Japan’s surprise easing spurs on more negative yield bonds.
  • Financial Times (Comment): Is it finally time to buy Deutsche Bank stock?
  • Financial Times (Comment): Emergency treatment continues but the global economy is still on life-support.
  • Financial Times (Lex): SFX Entertainment: facing the music.
  • Financial Times (Lex): Siemens / Gamesa: falling prices for solar and gas weaken the case for wind.
  • Financial Times (Lex): Ryanair: repurchasing stock looks smart, so long as the price is rising.
  • Financial Times (Lex): Luxottica: at the eyewear maker, seniority does count for something.
  • Financial Times (Lex): Japan: parking cash at banks now costs money, so expect more companies to distribute it instead.

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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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