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Wednesday Papers: UBS takes swift action on job cuts

The Swiss bank started to put bankers on leave on the very day it confirmed one of the most sweeping job cuts in banking in the last decade.

 
Wednesday Papers: UBS takes swift action on job cuts

Top stories

  • Financial Times: UBS sent a shiver through the global financial sector on Tuesday when the Swiss bank started to put bankers on leave on the very day it confirmed one of the most sweeping job cuts in banking in the last decade.
  • Financial Times: Walt Disney has agreed on a $4 billion deal to acquire Lucasfilm, the company behind the Star Wars films, and revealed plans to release a seventh movie in the series.
  • Financial Times: BP said it was raising its dividend payout to 9 cents per share – an increase of 12.5%, helping to send its share price up 4.2% to 442 pence on Tuesday.
  • The Guardian: The British transport department is worried about Siemens finalising £1.4 billion Thameslink trains contract, with Bombardier waiting in the wings.
  • The Daily Telegraph: Japan’s Hitachi has revived Britain’s ailing nuclear power ambitions with plans to invest £20 billion in building at least four reactors in the UK.
  • The Independent: Royal Mail has announced a £75 million investment programme for its UK express parcels business, creating 1,000 jobs.
  • Daily Mail: Mr Kipling-owner Premier Foods is in talks with a leading American supermarket chain, thought to be Wal-Mart, as part of plans to break into the US market.
  • Financial Times: Standard Chartered hopes to resolve the outstanding regulatory inquiries into its compliance with US sanctions by the end of 2012 after talks with regulators.
  • The Daily Telegraph: Standard Chartered said its operating profits for the first nine months of the year had grown by a “mid single-digit rate” before taking into account the impact of a $340 million fine to settle allegations it broke US sanctions.
  • The Daily Telegraph: Stagecoach, which has been running West Coast for the past 15 years with Virgin Trains, said that revenue on the London to Scotland line rose 2.7% in the 24 weeks to 14 October, raising further questions over the transport department’s decision in August to award a new 13-year contract to FirstGroup, based on double-digit annual revenue growth projections.
  • The Independent: Kweku Adoboli, 32, an alleged rogue trader accused of gambling away £1.4 billion while working for Swiss bank UBS, was urged to "push the boundaries" by his bosses, a jury heard on Tuesday.

Business and economics

  • Financial Times: Chinese listed companies have reported a sharp rise in unpaid bills during the third quarter, in one of the clearest signs yet of the toll that China’s economic slowdown is taking on corporate balance sheets.
  • The Independent: South African platinum miner Lonmin has unveiled plans to raise $800 million in a rights issue and to change the terms of its debt facilities.
  • Financial Times: British banks should be forced to pay compensation to victims of mis-selling without those victims filing a claim, in order to avoid future large-scale scandals, Chief Ombudsman Natalie Ceeney told MPs.
  • Financial Times: Saudi Arabia will lobby the UK government as early as November to set up a confidential court in London that would settle multimillion pound commercial disputes arising from the Middle Eastern kingdom.
  • The Independent: The devastation wrought by Superstorm Sandy could cost up to $50 billion according to some economists and wipe 0.7% off US growth in the fourth quarter.
  • Financial Times: More than £58 billion of funding for business support should be stripped from Whitehall and placed in local hands under a radical overhaul of the British state to be proposed on Wednesday by Lord Heseltine, the Tory former cabinet minister.
  • The Guardian: Greece's prime minister has announced that Athens has reached a deal with its international lenders over its austerity package, after four months of talks; he has warned of 'chaos' if the €13.5 billion programme of cuts and tax rises was not passed.
  • The Daily Telegraph: The Spanish economy shrank by 0.3% between July and September, marking the fifth consecutive quarter of contraction.
  • The Daily Telegraph: French President Francois Hollande is pushing through legislation to increase taxes on beer by 160% to help fund struggling social programmes as France tries to contain a budget deficit hit hard by the economic crisis.
  • The Daily Telegraph: Imperial Tobacco has taken a £1.2 billion writedown on its Spanish business as the economic outlook in the southern Mediterranean country worsens; it raised dividend by 11% to a mighty 105.6 pence a share.
  • The Daily Telegraph: Ford Motor Company has revealed a record $2.2 billion third-quarter profits a week after it announced the closure of two of its British sites with the loss of 1,400 jobs.
  • The Independent: Italian carmaker Fiat has said it expected to post a trading loss of €700 million in Europe this year and break even in the region only in 2015-16.
  • Financial Times: Chief executive Sergio Marchionne has outlined a strategy for Fiat to survive a European “Carmageddon” by focusing on export markets rather than closing plants, as it seeks to break even on the continent by 2016.
  • The Independent: The billionaire tycoon and Tottenham Hotspur owner Joe Lewis on Tuesday expanded his reach into TV and film production as he shook up the board of DCD Media by appointing David Craven and Richard McGuire chief executive and chairman of the company.
  • Financial Times: Grant Capital Partners, the hedge fund manager set up by the former Goldman Sachs trading star behind Peloton Partners – one of the industry’s biggest collapses – is shutting down.
  • Financial Times: Net profits at Foxconn rose 24% to T$57 billion ($1.9 billion) for the first nine months of the year and revenue rose 20% to T$2.23 trillion as sales of the iPhone 5 began to take off, beating analysts’ expectations.
  • The Daily Telegraph: Centamin's shares fell as much as 59% on Tuesday after an Eygptian court annulled its contract to extract gold at its Sukari mine near the Red Sea.
  • Financial Times: Sales at Dutch company TomTom, which earlier this year signed a deal to provide its maps data to Apple, fell 19% year on year to €274 million, while earnings before interest, tax, depreciation and amortisation fell 15% to €58 million.
  • Financial Times: Scottish chipmaker Wolfson Microelectronics swung to a $1.6 million pre-tax profit in the three months to 30 September, compared with a loss of $2.9 million in the same quarter a year ago due to buoyant sales of tablets and smartphones.
  • The Daily Telegraph: The Financial Times has imposed a recruitment freeze and ordered staff to cut travel costs, amid concerns over its advertising revenues.
  • Financial Times: Argentina’s economy minister Hernán Lorenzino has blasted a US court ruling that would force the country to repay creditors who have sued to collect on defaulted Argentine bonds, saying the country would never pay the “vulture funds”.
  • The Independent: Tesco Bank has become the latest lender to take advantage of the Bank of England's £80 billion Funding for Lending scheme.
  • Financial Times: At a time when profit warnings from British industrial companies are becoming all-too regular occurrences, Porvair, the UK’s only listed filtration group, has recently reported its 13th consecutive earnings upgrade

Share tips, comment and bids

  • Financial Times: Singapore Airlines has taken a 10% stake in Virgin Australia, the country’s second-biggest airline, as it seeks to protect its position in the Australian aviation market.
  • Financial Times: Mikhail Fridman’s Altimo has increased its stake in Russian telecoms group Vimpelcom after buying a 6% stake from Bertofan, giving it an edge over rival shareholder Telenor and raising the possibility that Russia’s anti-monopoly service will drop a six-month-old suit against Telenor.
  • The Guardian: Branston Pickle is being sold to Mizkan Group, a 200-year-old Japanese vinegar manufacturer, for £92.5 million, in the latest deal involving an Asian food business and a British household brand.
  • Financial Times: IG Seismic Services, a leading seismic company in Russia and one of the biggest in the world, is expected on Wednesday to apply to list its shares in the form of global depositary receipts on the London Stock Exchange.
  • The Daily Telegraph: Buyers are queuing up to salvage a future for embattled black cab maker Manganese Bronze, its administrator PricewaterhouseCoopers has claimed.
  • The Guardian (Comment - George Soros): Offering food and shelter to Greek migrants and community centres to the local population would be a powerful response to the fascist sentiment of Golden Dawn.
  • The Guardian (Comment): The British PM talks tough on the European Union but claims to support it. His position is hopeless. A new deal is needed.
  • The Daily Telegraph (Comment): Hitachi’s announcement that it is spending nearly £700 million to enter the UK nuclear market is welcome news.
  • The Daily Telegraph (Comment): Our tax system is a chain around the economy’s ankles.
  • Financial Times (Lex): Hitachi: the Japanese company does not benefit from making both consumer products and power systems. The group needs to concentrate its efforts if it is to thrive.
  • Financial Times (Lex): Fiat: the Italian carmaker is doing relatively well in the Americas, but its home market is in dire shape and will not recover any time soon
  • Financial Times (Lex): Deutsche Bank: as UBS retreats from full-service investment banking, Deutsche Bank’s years of investment to achieve scale look to be paying off
  • Financial Times (Lex): Burger King: unlike kingsize McDonald’s, Burger King is becoming a chain of franchises, a strategy that’s resulted in sharp drops in revenues and profits.

1 comment so far. Why not have your say?

Jn

Oct 31, 2012 at 08:55

What can shareholders of Centamin do against rogue governments and their legal systems.

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