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Thursday Papers: Global banks told to cut City bonuses

Thursday Papers: Global banks told to cut City bonuses

Top stories

  • Financial Times: Global banks operating in London have been warned by the top UK bank supervisor that this year’s staff bonuses must reflect the mis-selling and market manipulation scandals that have damaged the sector in the past 12 months.
  • Daily Mail: The Bank of England Governor Sir Mervyn King refused to rule out pumping more new money into the economy and warned the UK could slip back into recession on its 'long and winding' road to recovery.
  • The Guardian: Moody’s warned on Wednesday night that the UK will lose its prized AAA credit status if the country sinks into a triple-dip recession this winter; the move follows decision by Bank of England to halve growth forecast for 2013 to 1%.
  • Financial Times: Spain will need no further austerity measures until the end of next year even though it will easily miss its deficit targets, the EU’s top economic official announced on Wednesday in the clearest sign yet Brussels is backing away from an austerity-focused crisis response.
  • The Guardian: Hundreds of thousands of Europeans mounted one of the biggest coordinated anti-austerity protests across the continent on Wednesday, marching against German-orchestrated cuts as the eurozone is poised to move back into recession.
  • Financial Times: The EU pledged $6.4 billion in aid to Egypt on Wednesday as Cairo and the International Monetary Fund neared agreement on a $4.8 billion loan that is seen as a lifeline to the country’s struggling economy.

Business and economics

  • The Daily Telegraph: A sharp growth in sales online and in convenience stores has driven profits upwards at J Sainsbury, Britain's third-largest supermarket.
  • Daily Express: Royal Mail moved closer to a £2 billion float yesterday as it said rises in stamp prices and the online shopping boom had boosted profit.
  • The Daily Telegraph: Barclays is set become only the second bank to sell contingent capital that would be used to rescue the firm if it gets into trouble in future.
  • Financial Times: Barclays raised $3 billion on Wednesday via a bond issue that some analysts say could pave the way for similar deals as banks try to meet rules on absorbing losses in a crisis.
  • The Guardian: Goldman Sachs appointed 70 of its high-flying directors to the coveted status of partner on Wednesday – the lowest number since the Wall Street firm became a public company in 1999.
  • The Daily Telegraph: The Government must address the "Amazon tax issue" or risk driving UK-based retailers out of business, the managing director of John Lewis has warned.
  • The Daily Telegraph: Fitch Ratings has threatened to stop its Italian coverage and quit its offices in Milan in retaliation to the accusations of market manipulation by the prosecutor in Trani.
  • Daily Mail: Tango-owner Britvic is preparing to lay off up to 500 workers after finally agreeing terms for its £1.4 billion merger with smaller rival AG Barr.
  • The Guardian: ICAP reported a 26% fall in pre-tax profits in the first half of the year; chief executive of the interdealer broker, Michael Spencer, as warned that financial markets are suffering the worst crisis he has seen in his 36 years in the City.
  • Daily Mail: Private jet management firm Hangar 8’s shares jumped 35p to a record 176.5p and have more-than-doubled since June following news that profits in the first quarter were up 331% to £461,000.
  • Financial Times: The crisis in the oil tanker market claimed its biggest victim on Wednesday when the US-based Overseas Shipholding Group filed for bankruptcy.
  • The Guardian: Barack Obama adopted a tougher approach to the fiscal cliff showdown on Wednesday when he made an unequivocal pledge that he will not cave in to Republican demands for tax cuts for the wealthy.
  • The Daily Telegraph: Greece's economy shrank for the 17th consecutive quarter and is now 7.2% smaller than it was at the same time last year, according to data that triggered fresh protests for the austerity programmes to be overhauled.
  • The Guardian: The German power firm RWE, which trades as npower in Britain, has raised its pretax profit forecast for the year to at least €5.8 billion.
  • The Daily Telegraph: Royal Bank of Scotland's chairman has suggested the lender could consider moving from its Edinburgh headquarters.
  • The Guardian: The Energy company SSE has revealed a leap in profits of almost 40%, just a month after announcing a 9% increase in bills.
  • Daily Express: Digital TV business Base 79 is targeting overseas expansion after a £7.5million investment by Hollywood deal maker Peter Chernin.
  • Financial Times: MoneySupermarket.com, the UK’s leading price comparison website, said revenues jumped 11% in the third quarter as it shrugged off competition from Google.
  • Financial Times: YouView, the long-delayed broadband TV service backed by Lord Sugar, has suffered a setback in a trademark battle over the use of its name.
  • The Independent: Christie’s is locked in a legal battle in the world’s largest auction market claiming an Asia rival is cashing in on its prestige by using a suspiciously similar sounding name.
  • Financial Times: Investors in US mortgage securities have been forced to absorb large writedowns in response to a deal between leading financial groups and government agencies over the “robosigning” scandal.
  • Financial Times: Oil prices gained more than $2 a barrel on concerns over heightening tension in the Middle East.
  • Financial Times: Bloomberg is to enable derivatives trading on its foreign exchange trading platform.
  • Financial Times: Underlying sales at WH Smith have continued to fall in the first 10 weeks of the retailer’s financial year; group like-for-like sales fell 4% year on year in the period to mid-November.
  • Financial Times: Shares in Abercrombie & Fitch, the youth fashion retailer, leapt 30% after it ended a string of weak results by reporting better than expected profits and signs of improvement in its US sales.
  • Financial Times: Barratt Developments, the UK’s largest homebuilder by volume, said it was on track for higher profits this year.
  • Financial Times: Banca Monte dei Paschi di Siena, Italy’s third-biggest bank by assets, registered a 71% increase in money set aside for bad loans pushing the lender to a loss of €47 million in the quarter after posting a net profit of €42 million in the same period last year.

Share tips, comment and bids

  • Financial Times: Starbucks is spending $620 million to acquire Teavana, a tea retailer it will use to build a bigger presence in the Middle East, China and India.
  • The Daily Telegraph: Carphone Warehouse Group could buy US retailer Best Buy out of their joint venture in Europe, putting it in line for a return of up to £550 million.
  • The Guardian: Shares of Facebook jumped as much as 11.2% yesterday, even as the biggest block of shares held by insiders became eligible for sale for the first time since the social media company's disappointing debut in May.
  • Financial Times: Gazprom is set to shore up its influence over European gas markets as part of an asset swap that will see it take full control of gas and trading storage businesses it jointly owns with Germany’s BASF.
  • Financial Times: Spotify has raised about $100 million from a group of investors led by Goldman Sachs.
  • Financial Times: Stephen Jennings, the veteran Moscow-based financier, is giving up control of Renaissance Capital, the investment bank he founded 18 years ago, to Mikhail Prokhorov, the Russian oligarch and New Jersey Nets owner.
  • Financial Times: GrainCorp, the Australian grain trader, has knocked back a A$2.7 billion takeover approach from Archer Daniels Midland.
  • Financial Times: Great Portland Estates, the West End property developer, has raised £140.6 million through a share placement that will enable it to seek more acquisitions in some of the capital’s most coveted postcodes.
  • The Daily Telegraph: Hedge funds have started buying the voting rights on Xstrata shares in order to force through next week's vote on the miner's £44 billion merger with Glencore.
  • Financial Times: Warner Music and a joint venture led by industry impresario Simon Fuller are among nine groups to have registered interest in buying Parlophone from Vivendi’s Universal Music Group.
  • The Daily Telegraph (Comment): Sainsbury’s: On planet retail they say turnover is vanity, profits are sanity. So what would the grocers' psychiatrist make of J Sainsbury?
  • The Guardian (Comment): Sainsbury’s: 31 quarters in a row of like-for-like sales growth is a striking record and the formula clearly works. The long-term is a different matter.
  • The Daily Telegraph (Comment): There was a sharp reality check on Wednesday for anyone minded to think of last month's freak, third-quarter growth in GDP as evidence of the first green shoots of economic recovery pushing their way through the rain-sodden landscape.
  • Financial Times (Lex): Abercrombie & Fitch: the chain of youth-worshipping clothing shops reported accelerating sales growth and a big jump in profits for the third quarter.
  • Financial Times (Lex): Infineon: German semiconductor maker is counting on growth in auto sector to stem decline in revenues but investors are right to be skeptical.
  • Financial Times (Lex): Italian banks: latest results offer few clues on how lenders will boost their top line, with cost-cutting still their best hope for profit generation at present.
  • Financial Times: Barr / Britvic: makers of Irn Bru and Tango get together in an all-share deal pitched as a merger, proving that in tough markets it is scale that counts.

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