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Monday Papers: US and UK unveil failing banks plan

Monday Papers: US and UK unveil failing banks plan

Top stories

  • Financial Times: US and UK regulators will unveil the first cross-border plans to deal with failing global banks on Monday.
  • Financial Times: An unexpected new proposal for international regulation of the internet drew warnings over the weekend of a spread of online censorship and left a global conference on the issue on the edge of collapse; the plan put forward by a group of Arab states has won the backing of Russia and China.
  • Financial Times: Documents used as the basis for an investigation into alleged financial irregularity at mining companies part-owned by Bumi, the London-listed group, were stolen, hacked or doctored or all three, says Indonesia’s Bakrie family.
  • The Daily Telegraph: Rolls-Royce, the British engineering group, has been accused of paying $20 million and a blue Rolls-Royce car to the son of the former president of Indonesia to win a contract to supply engines.
  • Financial Times: Three, the mobile telecoms group, has awarded the management of its core network in the UK to Huawei, the Chinese equipment maker, in the latest sign of the shift of business in the sector to Asian rivals.
  • The Daily Telegraph: The row over the amount of tax multinationals are paying has taken another turn after it emerged that Microsoft pays no UK tax on £1.7 billion of online revenues.
  • Daily Mail: An overseas company could seize control of the UK’s banknote production under a new £1 billion Bank of England contract, ending Basingstoke-based De La Rue’s involvement since 2003.
  • Financial Times: YPF, the Argentine state-controlled energy company, is in talks with Norway’s Statoil about a potential partnership as part of its $37 billion push to develop the Latin American country’s massive energy reserves.
  • Financial Times: Iceland’s president Ólafur Ragnar Grímsson is expected on Monday to welcome planned investment by UK companies to launch oil exploration programmes in Arctic waters that, if successful, could transform the economy of the Nordic country.
  • The Independent: Royal Bank of Scotland hopes to do its bit for the environment by launching a £200 million Carbon Reduction Fund to help businesses reduce energy costs.
  • The Guardian: An extra 200,000 people in Britain may be without a job by this time next year, according to the thinktank IPPR, and youth unemployment may again rise above a million.
  • Daily Mail: Sir Richard Branson could be just days away from surrendering control of Virgin Atlantic; US carrier Delta is in talks to buy the 49% of Virgin that the billionaire tycoon does not own from Singapore Airlines.
  • Financial Times: Three global investment banks - Bank of America, JP Morgan and Deutsche Bank - plan to move 3,000 City of London jobs to other UK cities and towns over the next few years.
  • The Independent: Small businesses paying huge fees from interest rate swaps to their banks are set to meet the Financial Services Authority this week to call for a quicker and more transparent process.
  • Financial Times: HSBC has been downgraded by one notch to double-A minus by Fitch on the back of a tougher global regulatory environment and the bank’s rapid expansion into more risky emerging markets.

Business and economics

  • Financial Times: The UK’s chief financial watchdog has sharply tightened its grip on overseas banks that want to take deposits in Britain, pressuring them to open locally-regulated subsidiaries with their own access to cash and capital.
  • The Daily Telegraph: Asset prices across the world have risen to heady levels not seen since the credit boom five years ago and may be losing touch with economic reality yet again, the Bank for International Settlements has warned.
  • Financial Times: A handful of top Republicans are giving up their opposition to higher tax rates on the rich, signalling possible progress in the fiscal cliff negotiations and adding pressure to conservatives in the House of Representatives.
  • Financial Times: Mario Monti, Italy’s technocrat prime minister, has announced that he intends to submit his resignation once parliament passes the 2013 budget law.
  • Financial Times: China’s economic recovery gained ground in November as industrial output and retail sales growth hit eight-month highs.
  • Financial Times: Greece’s offer to buy back some of its bonds at a steep discount appears to have been successful, which could unlock a vital dollop of aid and allow a wider €40 billion debt relief package agreed with its international lenders to proceed.
  • The Independent: The City's relentless rise has sucked £7,000 a year from the pockets of the average British worker, a report from the TUC will reveal on Monday.
  • Financial Times: Investors have fallen so far out of love with stocks that assets in fixed income hedge funds are poised to overtake those in equity trading strategies for the first time in the history of the $2 trillion industry.
  • Financial Times: So far this year, emerging market issuers have raised almost $7 billion in sales of bonds denominated in Japanese yen, commonly known as samurai bonds, compared to last year’s $4.4 billion total, according to Dealogic.
  • Financial Times: Serco, the FTSE 100 outsourcing company, has lost its contract to run the National Physical Laboratory – which built the first atomic clock – after the British government said it would seek academic partners to take over the centre instead.
  • Daily Mail: Mike Lynch, founder of software firm Autonomy, has appointed lawyers to handle accusations from US computer giant Hewlett-Packard that it wilfully misrepresented the value of the British firm when it was sold to HP for £6.2 billion.
  • The Daily Telegraph: Barclays has fought back in its swaps mis-selling case against Guardian Care Homes, saying that the company had sufficient "market sophistication" to understand the product it was being sold.
  • Financial Times: A whistleblower has alleged for at least six years that Rolls-Royce paid bribes to secure business for its civil aircraft engines in Indonesia.
  • The Daily Telegraph: John Lewis has recorded its best ever week of sales and the department store chain’s boss believes the fillip has been driven at least in part by the tax backlash against rivals such as Amazon.
  • Financial Times: Siemens will deliver on a promise to find €3 billion in savings in its supply chain and keep its commitment to green technology as it seeks to close a profitability gap with competitors.

Share tips, comment and bids

  • Financial Times: RIT Capital Partners, Lord Jacob Rothschild’s London-listed investment trust, bought into Zopa, a peer-to-peer lending company that allows people to extend credit to each other without going through banks.
  • Financial Times: London buyout firms BC Partners, Permira Advisers and CVC Capital Partners are weighing up bids for Cerved Group, a corporate intelligence and rating agency based in Milan, according to people familiar with the situation.
  • Daily Mail: Drinks giant Diageo has the maker of Jim Beam in its sights – with a particular interest in the Maker’s Mark brand of premium Kentucky bourbon whisky.
  • The Guardian (Comment): Those who believe in a small state and self-regulated markets could claim JRR Tolkien and Elinor Ostrom as two of their own.
  • The Guardian (Comment): Older women are the nation's great untapped resource.
  • The Daily Telegraph (Comment): Like the generals of the First World War, Europe’s leaders seem determined to send wave after wave of their youth into the barbed wire of tight money, bank deleveraging, and fiscal austerity a l’outrance.
  • The Daily Telegraph (Comment): Whether it will be Italy, Spain, Portugal or Greece, one of these will shortly re-ignite fears for the euro’s survival.
  • Daily Mail (Comment): The next challenge for the British government is to set out a clear vision of its economic priorities for rebalancing the economy for the rest of this parliament, driving growth and ensuring relentless cross government support and co-ordinated action to deliver it.
  • Financial Times (Lex): US companies: If the economy sours, eating further into ebitda, higher leverage will prove to be a terrible gift
  • Financial Times (Lex): Yen / won: the Asian currencies are not enjoying uniform success in their recent skirmishes
  • Financial Times (Lex): Beiersdorf: The company will have to keep delivering nice surprises to justify its rating

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