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Monday Papers: EU plots seven-year budget without UK

Monday Papers: EU plots seven-year budget without UK

Top stories

  • Financial Times: EU officials have begun work on a plan to create a long-term budget without the UK in a move that reflects mounting frustration that Britain’s demand for a spending freeze cannot be reconciled with the rest of the bloc.
  • Financial Times: Franklin Templeton funds increased their holdings of Irish bonds by more than a third to at least €8.4 billion in the third quarter, gaining control of almost a 10th of Ireland’s entire government bond market.
  • Financial Times: BP is believed to be planning a share buyback of at least $4 billion, using the proceeds from the sale of its half of its Russian joint venture to Rosneft.
  • Daily Mail: Royal Bank of Scotland chairman Sir Philip Hampton has written to the Financial Services Authority and UK Financial Investments to defy pressure to sell its US arm, Citizens.
  • The Daily Telegraph: Jaguar Land Rover has sealed a joint venture with Chinese company Chery Automobile, marking £1.1 billion of investment in the world's second largest economy.
  • Financial Times: Virgin Atlantic will on Monday announce it has won the bidding for 12 highly-prized pairs of slots at Heathrow, which International Airlines Group, parent of British Airways, was forced to divest as part of its takeover of BMI.
  • Daily Mail: Former Trinity Mirror chief executive David Montgomery is expected to announce early this week that he has formed a new company, Local World, to take over the regional newspaper operations of the Daily Mail & General Trust and the Yattendon Group.
  • Financial Times: The British government’s hopes of boosting growth through infrastructure projects are being thwarted by a stand-off with the City as lenders balk at investing in high-risk developments without greater support from the Treasury.

Business and economics

  • Financial Times: Non-bank lending markets face unprecedented levels of government intervention under sweeping new proposals to tame “shadow banking” laid out by global regulators meeting as the Financial Stability Board.
  • Financial Times: Corporate tax breaks worth more than $150 billion over a decade could be threatened in the US budget negotiations, if lawmakers choose to adopt a flurry of White House proposals to boost revenues from business in order to reach a deal.
  • The Independent: Almost £5 billion of unpaid debt is left behind by businesses that close down each year – on top of the £11 billion debts left by insolvent firms, figures published by Experian on Monday reveal.
  • Financial Times: Investment banks are set to shed another 40,000 jobs in the next few years on top of cuts that have already been announced – and at least a third of them are going to give up their global ambitions, according to the report by Roland Berger Strategy Consultants.
  • The Independent: A survey from the recruitment house Astbury Marsden shows that 73% of City staff expect most new banking jobs to be created in South-east Asia, with Shanghai seeing the biggest jump in new positions.
  • Financial Times: Weather, the investment company chaired by Naguib Sawiris, the Egyptian telecoms magnate, is seeking $5 billion from the Algerian government for alleged harassment and interference of the country’s largest telecoms operator.
  • Financial Times: Danish conglomerate AP Møller-Maersk has delivered a damning assessment of the state of the container shipping sector by signalling it will switch investment to its other businesses including oil, drilling rigs, and ports divisions.
  • Daily Mail: Budget hotel operator Travelodge is linking with low-cost fitness chain Gym Group to find ten locations in London and the South East over the next five years in a £70 million property investment deal.
  • The Daily Telegraph: Unions have criticised AA owner Acromas for paying corporation tax of just 2.7% since it was founded in 2007, after a week in which Starbucks, Google and Amazon were made to give evidence to the Public Accounts Committee over their tax affairs.
  • Daily Mail: John Lewis increased overall takings by 7.6% on a year ago to £91.7 million in the week to Saturday, with the Furby the must-have toy for Christmas.
  • The Independent: Lord Turner will on Monday tell the Parliamentary Commission on Banking Standards that the banking Bill must enforce a "hard" ring-fence on banks' retail and small business operations to protect them in the event of a bank collapsing.
  • Financial Times: George Osborne is poised to introduce a major change to the listed commercial property sector by allowing real estate investment trusts (Reits) to invest in each other on a more tax-efficient basis.
  • The Independent: An independent Scotland could face deeper cuts to public spending than the rest of the UK, despite North Sea oil and gas revenues, the widely respected Institute for Fiscal Studies has concluded.
  • Financial Times: The Argentine government has vowed only to pay creditors who restructured their debt and has ruled out a new default as it does legal battle with holders of defaulted debt seeking full repayment.
  • The Daily Telegraph: Britain needs to urgently overhaul its accounting rules as they are dangerously distorting bank profits and leading to confusion over executive pay, some of the country's biggest investors and pension funds have warned.
  • Financial Times: The ‘shareholder spring’ revolt was nothing more than a mirage, according to latest research by KPMG which shows dissent over executive pay declined by more than two-thirds in 2012 compared to the year before.
  • Financial Times: High-tech companies face a shortfall of some 40 million skilled workers by 2020, with businesses based in China likely to be among the worst hit, according to a study by the McKinsey Global Institute.
  • The Independent: Shop vacancy rate hit a record high of 11.3% in October to set "alarm bells ringing" with more stores set to be thrown on the market over the coming weeks with the expected liquidation of Comet, the failed electricals retailer.
  • Daily Mail: Poor weather and Olympic disruption are expected to have caused a 13-14% fall in pre-tax profits to £135 million for Enterprise Inns, when the pub group announces its full-year results on Tuesday.
  • Daily Mail: Bed retailer Dreams has fallen out with one of its long-term suppliers, Silentnight, casting a fresh shadow over plans to revitalise the group with a £20 million refinancing.

Share tips, comment and bids

  • The Daily Telegraph: Private equity firm Advent is gearing up to sell insurance business Domestic & General for £1 billion, hoping to turn a £500 million profit.
  • Financial Times: Blackstone’s real estate arm is buying Top Ryde, a Sydney shopping mall in receivership, for $352 million from a European and Australian bank syndicate and Goldman Sachs.
  • Financial Times: Xstrata shareholders are set to gather on Tuesday at meetings in London and Zug in Switzerland to seal a planned $66 billion merger with commodity trader Glencore, some 10 months after the board of the miner first recommended a merger.
  • Financial Times: Fewer than one in 10 private equity professionals see an initial public offering as a “credible option” for technology companies in the next 12 months, according to a survey by Grant Thornton.
  • The Guardian (Editorial): Getting a critical mass of women to the top of major companies will change employment culture for everyone.
  • The Guardian (Comment): Despite being dragged into the Libor scandal, Mervyn King's deputy Paul Tucker appears to be his most likely replacement.
  • The Guardian (Comment): The UK's demands for cuts to the EU budget are wrong-headed, and a veto would backfire.
  • The Daily Telegraph (Comment): Germany, Holland, and the creditor states of northern Europe have not lost a single cent on eurozone rescue packages, so far.
  • The Daily Telegraph (Comment): Energy Crisis: power shift is too much too soon and could prove impossible task.
  • Financial Times (Lex): Melrose: gloomy comments about trading are not the only thing pushing the UK engineer’s shares lower – it has made a questionable assumption about Elster.
  • Financial Times (Lex): Coco bonds: Barclays has issued bonds that can be written off while a bank remains a going concern, and others are expected to follow suit.
  • Financial Times (Lex): Japan’s election: whoever wins, the government needs to find ways of encouraging savers to start spending to revive the economy.

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