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Saturday Papers: US bond yields soar on robust jobs growth

Top stories

  • Financial Times: Robust US employment figures sent bond yields soaring on Friday as the labour market showed it was healthy enough for the Federal Reserve to slow its $85 billion a month in asset purchases later this year.
  • Daily Express: The world’s largest mobile phone and TV maker Samsung Electronics yesterday warned that profits would be weaker than expected.
  • Financial Times: Eric Schmidt, the billionaire chairman of Google, is searching for a London mansion – a prospective £30 million purchase that would land him a higher tax bill than the internet group has paid on average in the UK in recent years.
  • Daily Mail: Marks & Spencer is expected to show flat growth over the past three months when delivering a first quarter update on Tuesday.
  • The Independent: Shares held on to most of their Mark Carney-inspired gains yesterday, despite surprisingly strong job figures from the US sparking fears the Federal Reserve would cut its quantitative easing (QE) programme.
  • Financial Times: Expectations of a £3 billion windfall from secret Swiss bank accounts have been thrown into doubt after the banking industry said that less money was hidden in Switzerland than previously thought.
  • Financial Times: The Federal Communications Commission has approved SoftBank’s $21.6 billion purchase of Sprint Nextel, clearing the final hurdle in the company’s protracted battle for the US wireless carrier.

Business and economics

  • Daily Express: Sterling slipped below the $1.50 mark to $1.4991, the weakest since mid-March.
  • Daily Mail: Official figures published in Washington on Friday showed employment rose by 195,000 in June while unemployment held firm at 7.6%.
  • Financial Times: Brandeaux, the property fund manager, has suspended all eight of its funds after experiencing higher redemption requests and liquidity problems.
  • Financial Times: The Financial Conduct Authority is investigating home and motor insurance providers to see whether existing customers are being treated fairly when policies are renewed.
  • Daily Express: Rolls-Royce has denied claims it has “cut corners” by using defective parts in its engines.
  • Financial Times: Germany’s Conergy, once one of Europe’s biggest solar companies, joined the roll call of failures in the embattled solar industry on Friday as it said it was filing for insolvency.
  • The Independent: Global regulators have warned that there are “significant differences” in how banks evaluate the riskiness of their assets, raising the prospect that some may ultimately have to increase their capital buffers by more than expected.
  • Financial Times: RSA Insurance held firm in a falling London market yesterday after its house broker defended the group’s surprise dividend cut.
  • Financial Times: Janie Schaffer, the Marks and Spencer “knicker queen”, who quit the retailer after just three months, is seeking more than £1 million in compensation from the high street bellwether.
  • The Guardian: Twitter, which is tipped for an $11 billion stockmarket flotation in New York, has filed small company accounts in Britain, reporting retained profits last year of just £92,408.
  • The Guardian: House prices are predicted to rise by 5% this year shutting out most first time buyers from property market.
  • Daily Mail: Almost a quarter of a million private investors will have the final say over whether Royal Bank of Scotland is split, in another hurdle the Government must overcome to privatise the lender.
  • Financial Times: The Japanese Bankers’ Association is to step up its supervision of the country’s interbank lending market.
  • The Guardian: Mobile operator EE is poised to lodge a complaint over rival Vodafone's use of its £40 million-plus Formula One deal to promote its 4G service on the side of the cars driven by Jenson Button and Sergio Perez at the British Grand Prix.
  • The Guardian: Pension savers approaching retirement have been dealt a blow as hopes of rising annuity rates diminished following a statement by the new Bank of England governor, Mark Carney.
  • Daily Express: Shale gas firm Cuadrilla Resources yesterday set out plans for shale gas exploration in Lancashire.
  • The Independent: Billionaire hedge fund boss Steve Cohen is likely to escape criminal charges over one of the biggest cases of alleged insider dealing as US prosecutors fail to come up with enough evidence against him before a deadline at the end of this month.
  • The Daily Telegraph: Landlords, banks and mortgage brokers are capitalising on the phenomenal resurgence of buy-to-let and now the taxman is cashing in too, with related revenues exceeding £2 billion a year.
  • Daily Mail: Returns from 16 Waitrose stores located in Welcome Break service areas saw sales rise 22% compared to a year earlier, when the Somerset music festival had a year off.
  • Financial Times: Sales of HTC’s new flagship phone helped the struggling smartphone maker’s revenues rise more than 60% from the previous quarter, though its profits still lagged behind expectations.
  • The Independent: Smiths Group, the maker of airport security scanners and bomb detectors, has sealed a deal to lower its troublesome pension liabilities.
  • The Daily Telegraph: MasterCard took its battle to protect the money it makes on credit card transactions to European Union's highest court today.
  • The Daily Telegraph: Oxford is to launch its own currency to be known as the Oxford Pound.

Share tips, comment and bids

  • Financial Times: Lloyds Banking Group is gearing up for a sale of its commercial finance arm in Australia, as the UK lender continues its retreat from struggling foreign operations.
  • The Guardian: The Treasury could sell off the first chunk of its stake in Lloyds Banking Group as early as August to coincide with the bailed out bank's interim results.
  • Financial Times: Afren, the Africa-focused oil explorer, has extended its interest in a Nigerian exploration licence by lifting its stake in local partner First Hydrocarbon Nigeria to close to 80%.
  • Financial Times: HSBC is to close its retail banking and wealth management operations in South Korea, admitting defeat in its 14-year struggle to break into consumer finance in the country.
  • The Independent: Unilever has raised its stake in Indian subsidiary Hindustan Unilever but fallen short of the 75% threshold it had originally targeted.
  • The Guardian: The German engineering group Siemens is pulling out of the race to build carriages for the London Crossrail project in a boost to two rival bids that hope to construct the £1 billion order in the UK.
  • Financial Times: British Land has bought up most of the Paddington Estate - a 1.2 million sq ft office-led estate near the west London railway station - as part of a £470 million investment deal.
  • Daily Mail (Comment): So long as RBS remains hobbled, it will continue to undermine confidence in the banking system and will be unable to play a full role in restoring growth.
  • Daily Mail (Comment): According to the latest research from accountant KPMG, fraud against UK investors has almost quadrupled to £74 million in the first half of 2013, up from £19 million in the same six months a year ago.
  • The Guardian (Comment): Adding 195,000 jobs might seem cause for optimism. The reality is an anaemic recovery with flat growth and low productivity.
  • The Independent (Comment): The latest monthly unemployment report from the US Department of Labor confirmed that the world’s largest economy is on the road to recovery.
  • The Daily Telegraph (Comment): Stansted airport handles almost 50 times as many passengers as Heathrow for every person affected by aircraft noise, a new discusion paper from the Airports Commission has found.
  • Financial Times (Lex): Asos shares trade on 90 times forecast earnings. Is this exalted valuation deserved, or is it just the latest example of dotcom mania?
  • Financial Times (Lex): US companies: the odds have risen that Fed bond purchases will be cut. As a direct and liquid play on the least frightening big economy, investors need US stocks to keep marching.
  • Financial Times (Lex): A new report casts more doubt on the way that banks calculate their risk weighted assets, and hence their capital requirements. Will the industry react?
  • Financial Times (Lex): Dell: the only people who can really walk away from the buyout offer are Dell’s minority shareholders.

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