New Model Adviser - For professional financial planners

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.
6622.72 6646.6 0.36% 04:35

Friday Papers: Decision to retain RPI cheers bonds

Friday Papers: Decision to retain RPI cheers bonds

Top stories

  • Financial Times: The inflation-protected government bond market cheered an unexpected decision by the Office for National Statistics not to tamper with an influential index used to measure price changes, sending yields tumbling the most in more than a quarter of a century.
  • Financial Times: Royal Bank of Scotland is considering recouping half of its imminent regulatory penalty for Libor abuses from the 2012 bonus pool of its investment bankers.
  • The Daily Telegraph: Two of Royal Bank of Scotland's best-paid executives are under pressure to resign and hand back up to £15 million in bonuses over alleged Libor-rigging at the group.
  • The Independent: Deutsche Bank made huge profits from betting on Libor interest rates as it raked in €500 million from trades pegged to Libor rates in 2008.
  • Financial Times: Google will be forced to change the way it presents search results in Europe or face antitrust charges for “diverting traffic” to its own services, the EU’s competition chief has said.
  • Financial Times: American Express will cut 5,400 jobs in the coming months, equal to 8.5% of its workforce.
  • Financial Times: Walmart is facing fresh scrutiny over corruption allegations in Mexico.
  • Financial Times: The European Central Bank hailed a “normalisation” in financial market conditions on Thursday as its governing council voted unanimously to keep rates on hold, signalling confidence that the eurozone would stage a gradual recovery from recession later in the year.
  • Daily Mail: Bank of England leaves rates and QE unchanged despite fears of new downturn.
  • Financial Times: BlackRock, the world’s largest money manager, is to buy the exchange traded funds business of Credit Suisse, the US fund house announced on Thursday.
  • Financial Times: China shrugged off concerns over global economic gloom to end 2012 with a rebound in exports and imports; exports and imports rose 14.1% and 2.9%, respectively, in December from a year earlier.

Business and economics

  • Financial Times: Central bankers and regulators meeting in Basel this week gave residential mortgage-backed securities a formal stamp of approval by allowing highly rated forms to be included in liquidity buffers that banks will have to hold to prevent future financial turmoil.
  • The Guardian: A record number of consumers will receive payouts from banks in 2013 over mis-sold payment protection insurance policies, after the Financial Ombudsman Service said it expected to resolve almost three times as many cases as in the current financial year.
  • Financial Times: Four lenders - RBS, Commerzbank, Standard Bank and Commercial International Bank of Egypt - have dropped a lawsuit against Dubai Group after agreeing to restructure debts owed by the Dubai ruler’s troubled investment firm.
  • The Guardian: Tesco is "back on form", according to its chief executive, Philip Clarke, after the supermarket giant announced a 1.8% rise in like-for-like sales – although that was over a shorter six-week period.
  • The Daily Telegraph: Shell’s Arctic problems mounted as it emerged that hundreds of gallons of fuel may have leaked during the grounding of its Kulluk rig and the US Interior Secretary branded the company’s mishaps “troubling”.
  • Financial Times: Apple’s chief executive Tim Cook said that China would “soon overtake” the US as the iPhone maker’s largest market.
  • Financial Times: Brent crude hit a 12-week high on Thursday, rising above $113 a barrel as Saudi Arabia cut its oil production to the lowest since May 2011.
  • Financial Times: The yield on the benchmark British inflation-linked gilt maturing in 2022 fell 33 basis points to a negative 0.96%, despite conventional gilt yields climbing; the linker yield – which moves inversely to prices – is the lowest since at least 1992, when Bloomberg began collecting data on the market.
  • The Daily Telegraph: Moody's has downgraded Cyprus's government bond rating by three notches from B3 to Caa3, citing the anticipated increase in the government's debt burden.
  • The Daily Telegraph: Joblessness among Greek youth edged closer to 60% in October, figures from the state statistics agency revealed on Thursday, with the country's unemployment rate hitting a new high of 26.8% in October.
  • The Guardian: The Office for National Statistics has bowed to fierce lobbying by pensioner groups and backed away from radical changes to the way inflation is calculated that could have depressed retirement payouts.
  • Financial Times: Channel 4 and the UK media buying arm of WPP have resolved their spat over the broadcaster’s proposed new rates for this year.
  • Financial Times: Nokia provided a tentative sign on Thursday that its smartphone partnership with Microsoft and deep restructuring efforts were paying off as it reported a positive underlying profit margin in its core mobile business for the first time in a year.
  • The Guardian: Rolls-Royce has appointed Lord Gold to review anti-corruption procedures following bribery allegations involving the aircraft engine manufacturer in Indonesia and China.
  • The Daily Telegraph: David Adams, the former chairman of Jessops, has blamed HSBC for the collapse of the electrical retailer saying a deal was on the table last summer that could have saved the company.
  • Financial Times: SAP took direct aim at arch-rival Oracle’s core database market on Thursday as it announced that it had recast its main business application software to run on its in-house database.
  • The Independent: Goals Soccer Centres' attempt to capitalise on the David Beckham effect in Los Angeles has cost it £2 million.
  • Financial Times: Marc Bolland has pledged to still be at the helm of Marks and Spencer in a year’s time, despite intensifying pressure on the chief executive after poor Christmas clothing sales.
  • The Independent: The casino and bingo giant Rank has put its loss-making online sports betting arm Blue Square up for sale.
  • Financial Times: Herbalife, the nutritional supplement company accused of being a pyramid scheme by short seller Bill Ackman, on Thursday lashed out at his Pershing Square hedge fund.
  • Financial Times: Citadel, the Chicago-based fund manager, trumpeted “an exceptional year” at its two main hedge funds, announcing annual returns of about 25% in a letter to investors.

Share tips, comment and bids

  • Financial Times: IQE, the Welsh maker of compound semiconductor wafers, has bought US company Kopin Wireless for $75 million in cash.
  • Financial Times: Warburg Pincus, the private equity group, is selling a big slice of its 70% stake in Indian tyremaker Alliance Tire; the equity is likely to be well over $500 million.
  • Financial Times: Hostile takeovers have fallen to a decade low, highlighting how lack of confidence among corporate leaders is reining in dealmaking.
  • The Daily Telegraph (Comment): Marc Bolland is running out of time to fix M&S.
  • The Daily Telegraph (Comment): The US warnings on British exit from the EU are boilerplate American diplomacy.
  • Daily Mail (Comment – Alex Brummer): Marks & Spencer is not Chelsea FC. The suggestion that casting out boss Marc Bolland now would solve matters is barmy.
  • Financial Times (Lex): Investment banks: if bosses are serious about putting words into practice, they must start firing some of their relationship bankers who are rarely affected by cuts.
  • Financial Times (Lex): M&S: the retailer is putting faith in revamped clothing range but even if turnround occurs quicker than expected the impact on profits will be limited.
  • Financial Times (Lex): Japanese electronics: predicting the demise of Sony, Panasonic and Sharp has been as thankless as hoping for a revival. It is time for the companies to deliver.
  • Financial Times (Lex): Case against Herbalife: Ackman’s attacks have identified tensions in its business model but the supplements seller has proved to be a good investment since listing.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.