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Friday Papers: BoE suspends bond-purchase plan

by Himanshu Singh on Nov 09, 2012 at 02:47

Friday Papers: BoE suspends bond-purchase plan

Top stories

  • Financial Times: The Bank of England suspended its emergency bond-purchasing programme on Thursday, raising doubts about whether quantitative easing has lost its power to boost the economy.
  • Financial Times: Insurers have complained that they face billions of dollars of extra losses after US authorities declared superstorm Sandy a post-tropical cyclone rather than a hurricane.
  • Financial Times: The Federal Reserve has approved JPMorgan Chase’s plan to purchase up to $3 billion of its shares next quarter in a move that analysts reckon could herald more dividends and stock buybacks by the largest US banks.
  • Daily Express: Shares in nearly 150 companies are on the list of those being shorted by more than 50 funds and disclosed by the Financial Services Authority under new EU rules that came into effect on 1 November.
  • The Daily Telegraph: Apple has been knocked off its throne as producer of the world's best-selling smartphone with Samsung's Galaxy S3 overtaking the iPhone 4S for the first time.
  • Financial Times: Libor will be gradually pruned back from 150 daily fixings to 30 by April of next year under proposals unveiled by the British Bankers’ Association on Thursday.
  • The Guardian: G4S, the private company at the centre of the Olympic security debacle, has lost its contract to run Britain's first private prison and failed to win any new contracts in the biggest round of prison privatisation in England and Wales so far.
  • Financial Times: Matthew Marshall Taylor, a former Goldman Sachs trader, has been accused by a US regulator of defrauding the investment bank of $118 million and concealing a futures position worth more than $8 billion.
  • Financial Times: Banco Popular has secured €8 billion in underwriting commitments from investment banks for its planned €2.5 billion share sale as the Spanish lender puts forward the deal to be approved by its shareholders this weekend.
  • The Guardian: The French and Belgian governments will pay €5.5 billion to take near-full control of Dexia, once the world's biggest municipal lender, after it reported a nine-month loss of €2.39 billion.
  • The Daily Telegraph: HSBC, Britain's biggest bank, is at centre of major HM Revenue and Customs investigation after it opened offshore accounts in Jersey for serious criminals living in this country.
  • Financial Times: Foreign banks are failing to make headway in China as their onshore investment banking, securities trading and corporate lending ventures have won less than 7% market share over the past five years, according to the analysis from consultants at Oliver Wyman.
  • Financial Times: Siemens plans to save €6 billion by 2014 in response to decline in both profitability and orders that has left the German engineering conglomerate trailing rivals such as General Electric.
  • The Daily Telegraph: International Airlines Group, owner of British Airways and Iberia, has mounted a €113 million offer to take full control of Spanish low-cost carrier, Vueling, as it looks to restructure its loss-making business in Spain.
  • The Guardian: Airbus owner EADS has taken a €200 million hit from costs related to repairing cracks inside the wings of A380 super-jumbos.
  • Financial Times: BP’s settlement with people who suffered financial losses or health problems as a result of the 2010 Deepwater Horizon disaster has received a boost from the New Orleans judge hearing the case, who suggested that the deal could be better for plaintiffs than continuing to fight through the courts.
  • The Guardian: Foxconn, the controversial Taiwanese manufacturer that has become one of the world's largest employers thanks to booming demand for the Apple products it assembles, is reportedly planning to open factories in the US.
  • Daily Mail: Embattled Aviva has warned investors to brace themselves for a heavy loss on the sale of its US business.

Business and economics

  • Financial Times: The next archbishop of Canterbury, a former oil executive, is a trenchant critic of the excesses of capitalism who will keep his place on the parliamentary inquiry into banking ethics, the FT has learnt.
  • Financial Times: Stocks on Wall Street fell heavily for a second day on Thursday as news about an impasse in Europe over an aid programme to Greece and worries over the outlook for the US economy weighed on sentiment.
  • Financial Times: The European Central Bank kept its main refinancing rate on hold at 0.75% on Thursday, shrugging off fears that the slowdown across the eurozone that is now hitting its biggest economy, Germany, warranted a cut.
  • Financial Times: Britain is warning other EU countries that it will block a single eurozone banking supervisor unless those outside the system win more safeguards, as London expresses growing frustration that its demands are being left to last.
  • Financial Times: Going off the fiscal cliff would mean 3% less output from the US economy and unemployment would rise to 9.1% by the end of 2013, according to a new report by the non-partisan Congressional Budget Office.
  • Financial Times: Intel was overtaken briefly in market value by rival Qualcomm in New York at midday on Thursday in a sign of the rapidly changing fortunes of the smartphone and personal computer industries.
  • Financial Times: Shares in Balfour Beatty, the UK’s biggest construction company by sales, crashed 18% on Thursday as it said its order book dipped 4% to £14.4 billion in the three months to September.
  • The Independent: The co-founder of the property website Rightmove, Ed Williams, has announced his retirement from the business he launched only 12 years ago, having amassed a fortune of more than £50 million.
  • Financial Times: Lenovo said second-quarter sales were up 11% from a year ago, a sharp slowdown compared with a 35% growth in the first quarter but which came against the backdrop of a decline in global PC sales.
  • Financial Times: Third-quarter revenues of Groupon were $569 million, far below analyst expectations of $592 million.
  • The Daily Telegraph: Flybe has hit out at sky high taxes as its plunges to £1.3 million loss.
  • Financial Times: Hyundai Motor and affiliate Kia Motors are facing consumer lawsuits in the US, potentially deepening the financial fallout for the South Korean carmakers from overstating the fuel efficiency of more than 1m vehicles sold in North America.
  • The Independent: RSA Insurance has fixed its sights on Latin America after revenues grew 4% to £6.2 billion in the first nine months of the year.
  • The Daily Telegraph: British sugar and artificial sweetener maker Tate & Lyle is to launch a £30 million venture capital fund to help develop food science startups and develop new ingredients.
  • Financial Times: Peter Chernin, former chief operating officer of News Corp, has secured an investment of about $100 million in his new company from government-backed Qatar Holding.
  • The Guardian: Morrisons has axed its commercial director after a weak run of promotions turned the Bradford-based supermarket into cannon fodder in an intensifying supermarket price war.
  • Financial Times: Adidas cut its sales forecast for this year to “high single-digit” figure because of lower expectations for its Reebok and Rockport brands but maintained it would reach its anticipated level of record earnings.
  • Daily Mail: SuperGroup, which owns the Superdry brand that is popular with celebrities including David Beckham, said half-year sales increased 26.5% to £92.4 million.
  • Financial Times: Global comparable store sales fell by 1.8% year on year at McDonald’s in October, marking the first monthly sales decline since 2003.
  • Financial Times: Coca-Cola Hellenic, which is poised to list in London next year, said earnings before interest and tax declined by 12% year on year, to €412 million, in the nine months to 28 September.
  • Financial Times: Reliance Communications’ net profits have plunged nearly 60% as the flagship telecoms company of billionaire Indian industrialist Anil Ambani’s Reliance conglomerate continues under a debt burden $6.6 billion.

Share tips, comment and bids

  • Financial Times: Orient-Express Hotels has rejected a $1.86 billion unsolicited offer from India’s Tata group and named a new chief executive – moves intended to ensure the luxury hotels group maintains its independence.
  • Financial Times: Priceline, the US online travel booking company, announced the $1.8 billion acquisition of specialist search company Kayak Software as it moved to counter the growing influence of Google in the internet travel business.
  • Financial Times: Ricardo, the engineering consultancy, has agreed to pay £18 million in cash for the remnants of AEA Technology, the privatised business spun out of the UK Atomic Energy Authority in 1994 and floated in 1996.
  • The Independent: Shop Direct, the home shopping group owned by the Barclay brothers, is considering acquiring the brand and website of the failed electricals retailer, Comet, which is to start closing some stores next week.
  • The Guardian (Comment): From the gulf between rich and poor, to welfare reform, old arguments are failing to find answers for a world in flux.
  • The Guardian (Comment): The latest draconian austerity measures imposed on the Greek people can be a catalyst to bring about the end of the old system.
  • The Daily Telegraph (Comment): Apple's dominance has been shaken to its core
  • The Daily Telegraph (Comment): US politics on international trial as fiscal cliff looms
  • Daily Mail (Comment – Alex Brummer): The British government would be in a better position if the corporation tax take was as buoyant as income taxes and VAT.
  • Financial Times (Lex): JP Morgan: Fed’s go-ahead for the bank to continue its share-repurchase journey suggests a receptive hearing may await for the next round of stress tests
  • Financial Times (Lex): AT&T: Telecoms group is prepared to press its structural advantage given that the US wireless market may turn nasty, and soon
  • Financial Times (Lex): Siemens: German capital goods group’s broad span of interests makes life challenging for investors as they try to disentangle trends
  • Financial Times (Lex): Swiss Re: One-offs, reserve releases and solid underwriting have left the comeback kid with surplus capital, raising expectations of a special dividend

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