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Monday Papers: Osborne to warn banks they risk break-up

Monday Papers: Osborne to warn banks they risk break-up

Top stories

  • Financial Times: George Osborne will warn banks on Monday that they will be broken up unless they comply fully with rules to make the financial system safer.
  • The Daily Telegraph: The owners of Everything Everywhere, Britain's biggest mobile phone company, are finalising plans for a £10 billion stock market flotation, it has emerged.
  • Financial Times: Chris Lucas, Barclays’ finance director since 2007, and Mark Harding, general counsel, are to step down, in the latest sign of the pressure piling on the British bank’s top management following a string of scandals.
  • Financial Times: Citigroup has hired Luigi de Vecchi, a former Credit Suisse and Goldman Sachs banker and one of Europe’s best-known dealmakers, as chairman for corporate and investment banking in continental Europe.
  • The Guardian: António Horta-Osório, chief executive of bailed-out Lloyds Banking Group, is expected to be questioned on Monday about whether he should pocket a potential £2.5 million bonus after Friday's news that Barclays boss Antony Jenkins has waived his mooted £1 million bonus.
  • The Daily Telegraph: BAE Systems rejected calls for an investigation into allegations that the company's former chairman acquired two luxury properties from offshore companies linked to a Saudi defence deal.
  • Financial Times: Anheuser-Busch InBev has signalled it intends to fight the Department of Justice lawsuit seeking to block its $20 billion deal to take full control of Modelo, the Mexican brewer.
  • The Independent: Payouts to shareholders of UK-listed companies broke records last year, with dividends soaring to £80.4 billion, an increase of 16.2% over 2011's total of 69.2 billion, according to Capita Monitors.
  • Daily Express: BP is hoping to settle outstanding liabilities for the Deepwater Horizon disaster in the Gulf of Mexico ahead of a trial for civil claims due to start in the US on 25 February.
  • Financial Times: Centrica is believed to be ready to pull out of plans to build nuclear power stations in Britain – clearing the way for Chinese investors to step in.
  • Financial Times: Foxconn, the contract manufacturer whose biggest customer is Apple, is preparing genuinely representative labour union elections in its factories in China for the first time, a powerful sign of the changes in the workshop of the world demanded by an increasingly restive workforce.
  • The Daily Telegraph: Heathrow is to invest £3 billion in developing infrastructure in a major boost to Britain's leading airport.
  • Financial Times: Trafigura, one of the world’s largest commodities trading houses, has bet roughly $800 million on the transformation of the Australian energy market with the acquisition of two petrol station and oil import terminal companies.
  • The Independent: The protracted £1.1 billion legal battle over three of London's most exclusive hotels - Claridge's, the Berkeley and The Connaught - resumes on Tuesday as Belfast developer Paddy McKillen prepares to cross swords again in court with the billionaire Barclay brothers.
  • Financial Times: BlackRock, the world’s largest asset manager, has systematically “looted” securities lending revenues from investors, according to a lawsuit filed by two US pension funds.
  • Financial Times: KKR and Permira, the private equity owners of ProsiebenSat.1, are exploring a sale of their controlling stake in Germany’s largest private broadcaster to a trade buyer, as they look to cash out from a multibillion-euro leveraged buyout done before the financial crisis.
  • The Daily Telegraph: Concerns are rising about the future of 1,000 jobs at discount retailer Store Twenty One after bailiffs were called to a collection of shops to claim stock.

Business and economics

  • Financial Times: Argentina has told a US appeals court due to rule on whether it must pay more than $1 billion to holders of its defaulted debt that its central bank reserves are not an “open till” and the fairest solution to a case that threatens to trigger a fresh sovereign default would be a new debt swap.
  • Financial Times: The European Commission appears determined to press ahead with a Europe-wide financial transaction tax in spite of warnings that it threatens the existence of Europe’s €1 trillion money market funds industry.
  • Financial Times: European investment banks are set to cut their bonus pools in the coming weeks by 20% in a move that will exacerbate the pay gap with their US rivals.
  • Financial Times: New job opportunities in the UK were up 3% in December and up 12% compared with a year ago, according to an index compiled by Reed.
  • The Independent: Customers will have the right to switch their bank account to a rival firm within a week under sweeping plans to reform the industry to be announced by British Chancellor George Osborne on Monday.
  • The Daily Telegraph: Tidjane Thiam, the chief executive of Prudential, has warned incoming Bank of England Governor, Mark Carney, that Britain is at risk of fresh financial turmoil unless Mr Carney halts quantitative easing.
  • Daily Mail: Former Marks & Spencer boss Sir Stuart Rose is to be named the new chairman of fashion chain Fat Face.
  • Financial Times: Apple has sought the help of Calpers, the largest US pension fund and one of the sharpest critics of its corporate governance policies, to push through reforms on shareholder voting rights at its annual meeting this month.
  • The Daily Telegraph: The administrators to HMV are preparing to close as many as 100 shops.
  • Financial Times: Blackstone, one of the world’s largest alternative asset managers, has quietly secured a securities underwriting licence as its expanding capital markets operation strays into investment banking territory.
  • The Daily Telegraph: Parlophone, one of Britain's most prestigious record labels which counts Coldplay and Kylie among its artists, has launched a boycott of Google's new music service, Google Play.

Share tips, comment and bids

  • The Daily Telegraph: The Royal Bank of Scotland plans to float the 316 branches it failed to sell to Santander to raise £1 billion.
  • The Independent: The investor roadshow for the flotation of housebuilder Crest Nicholson moves to the UK this week, as its chief executive Stephen Stone tries to seal a valuation of up to £580 million for the group.
  • The Guardian (Comment): I can now listen to music that was never aimed at me, from a time and a place I have no connection with – and even nearly enjoy it.
  • The Guardian (Comment): From HMV to the economic crash: business and policy makers could learn a lot from the big names of pop.
  • The Daily Telegraph (Comment): China’s vast reserve of cheap workers in the hinterland is vanishing at a vertiginous pace.
  • The Daily Telegraph (Comment): Are Japanese shares the dream investment?
  • Daily Mail (Comment): In the coming weeks, we shall hear the all too familiar justification for huge bonuses throughout the banking industry. Namely, that the recipients possess a rare talent which is almost impossible to replace.
  • Financial Times (Lex): California v Illinois: a divergence of fortunes appears to be under way for the two US states once considered the most vulnerable.
  • Financial Times (Lex): Canadian banks: if the housing market stumbles and Ottawa rethinks its generous insurance scheme, lenders might need to hold more capital.
  • Financial Times (Lex): China property: biggest developers raised a combined $5.4 billion last month – almost half what they borrowed in the whole of last year.

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