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Thursday Papers: US regulator grounds all Dreamliners

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Thursday Papers: US regulator grounds all Dreamliners

Top stories

  • Financial Times: The safety crisis surrounding Boeing’s ultra-modern 787 Dreamliner deepened on Wednesday when the US’s aviation regulator ordered all US-registered operators of the aircraft to ground them until they could prove their batteries were safe.
  • The Daily Telegraph: BP's safety standards are likely to come under scrutiny once more after an attack and kidnapping at its jointly-operated In Amenas gas field in Algeria, in which two men have reportedly been killed.
  • Financial Times: Shares in Boeing fell 3.4% in New York on Wednesday after All Nippon Airways and Japan Airlines became the first airlines to ground their 787 Dreamliners because of concerns about the safety of the passenger jet.
  • Financial Times: Goldman Sachs’s profits for the fourth quarter of 2012 almost tripled to $2.8 billion, while JP Morgan Chase reported net income of $5.7 billion for the same quarter, up sharply from $3.7 billion a year ago.
  • The Daily Telegraph: JP Morgan has halved chief executive Jamie Dimon's pay to $11.5 million because he had "ultimate responsibility" for a multi-billion trading loss racked up in London.
  • The Guardian: Blockbuster, the video and games rental company, has become the latest high street name in the UK to collapse into administration.
  • Daily Mail: The unfolding bloodbath on the UK High Street threatens to leave nearly one in five shops around the country empty, putting 17,500 jobs at risk, experts warned Wednesday night.
  • The Daily Telegraph: Zimbabwe is now targeting Western banks, including Barclays, with operations in the country after top African conglomerate Ecobank complied with black empowerment laws of selling majority shares to locals.
  • The Independent: Baghdad is preparing to sue Genel Energy, the oil company run by the former BP chief executive Tony Hayward, for "illegally" exporting some of the oil it produced in the semi-autonomous region of Kurdistan.
  • Financial Times: The Dell deal could be valued at close to $25 billion, according to several people familiar with the situation, making it one of the largest buyouts ever and by far the biggest since the 2008 financial crisis.
  • Financial Times: Reports that Dell could be the subject of a leveraged buyout have spiked acquisition interest in its main US rival Hewlett-Packard, according to people close to the world’s biggest PC maker.
  • The Daily Telegraph: Staff at Goldmans Sachs are set to receive average payout of $400,000 for last year, equivalent to close to a 10% rise compared with their earnings in 2011.
  • Financial Times: Paul Milsom, 45, a former equities sales trader at the investment arm of Legal & General, has indicated that he will plead guilty in the UK financial regulator’s biggest investigation into insider trading.

Business and economics

  • The Guardian: Warnings that the world is headed for "peak oil" – when oil supplies decline after reaching the highest rates of extraction – appear "increasingly groundless", BP's chief executive Bob Dudley said on Wednesday.
  • The Daily Telegraph: Rolls-Royce pushed into growth markets as it announced a $75 million contract to work on the world's longest pipeline in China, as well as a deal to service the Saudi air force.
  • Financial Times: Bumi plc is looking into what Nat Rothschild, the financier who helped create the London-listed coal miner, knew about alleged financial wrongdoing at its Indonesian businesses at the time of the original 2010 deal.
  • The Daily Telegraph: Nat Rothschild charged Bumi more than £4 million for the use of his private jet "N4T" during an 18-month period that took in flights everywhere from the world's biggest cities to far-flung Mauritania.
  • The Daily Telegraph: A move to block the naming of 42 Barclays staff named in documents linked to the investigation into Libor-rigging has been branded "implausible" and "over-stated".
  • Financial Times: Vodafone has held back-to-back meetings with the Indian government this week, raising hopes that a deal can be reached over a long-running $2.6 billion tax dispute that has soured international investors’ confidence in the country.
  • The Daily Telegraph: The world is edging closer to all out currency conflict as Europe’s politicians join a chorus of policy-makers across the globe pushing for devaluations to fight for market share.
  • Financial Times: British Prime Minister David Cameron faces renewed claims on Thursday that his proposed EU plebiscite will scare off investors and hit the economy, as he seeks to rally Tory cabinet ministers and eurosceptic MPs behind his Europe policy.
  • Financial Times: Foreign direct investment into China fell 3.7% to $111.7 billion in 2012 for the first time since the depths of the global financial crisis in 2009.
  • Financial Times: Germany’s central bank is planning to shift 54,000 gold bars worth €27 billion from Paris and New York to its base in Frankfurt, one of the biggest publicly announced shipments of the precious metal on record.
  • Financial Times: The World Bank now expects the world economy to grow by just 2.4% this year, down from the rosier 3% it predicted in June.
  • The Guardian: Almost 30% of people in Britain are unable to afford even a week's annual holiday, up from less than a quarter before the financial crisis, according to an analysis by the Office for National Statistics.
  • Daily Mail: Hyperactive punters chased the shares of Shire up to 2092 pence before they closed 49 pence higher at 2082 pence in London on Wednesday on revived gossip of a £30-a-share cash bid from AstraZeneca.
  • The Independent: Barratt Development, Britain's biggest housebuilder, was on bullish form on Wednesday as it unveiled plans for an extra 1,000 homes in London and said it would more than double annual profits.
  • The Daily Telegraph: Meggitt has won a contract to provide sensor components for an engine manufactured by Snecma, the French aerospace company.
  • Daily Mail: French Connection’s attempt to go upmarket by refusing to discount some of its stock backfired, with the fashion chain issuing a post-Christmas profit warning.
  • Financial Times: Dunkin Donuts’ said it would open 330-360 stores in the US in 2013, while Krispy Kreme said that by 2017 it would increase its US stores to more than 400 from 240 at the end of its current financial year.
  • The Daily Telegraph: Lidl supermarket is set to create 1,000 jobs in the UK as it continues its multi-million pound expansion in 2013.
  • The Independent: G4S, the outsourcing group at the centre of last year's Olympic security fiasco, has won a meter-reading contract with British Gas worth £150 million.
  • Financial Times: Apple is to allow Chinese consumers to buy its gadgets on credit – a move that could help boost sales in the world’s largest smartphone market by unit shipments, where it has lost share to cheaper brands.
  • Financial Times: EE, the UK’s largest mobile operator, will close 78 stores in towns where there had previously been both Orange and T-Mobile outlets, in a further blow for the beleaguered high street.
  • Financial Times: Bank of New York Mellon reported a 23% jump in fourth-quarter profits to $622 million, bolstered by gains from investment management fees that helped offset pressure from low interest rates in the US and Europe.
  • The Independent: The credit-checking company Experian expects to see high single-digit revenue growth in the year which ends in March after posting a 7% improvement in the third quarter on Wednesday, driven largely by Latin America.
  • Financial Times: FXCM, the US foreign exchange agency broker, is expecting China to be its biggest growth market this year, boosted by huge numbers of mobile-savvy retail traders.

Share tips, comment and bids

  • The Independent: Tui Travel has entered into merger talks with its German parent group, TUI AG, in a move that could generate about €100 million in savings across the enlarged company.
  • The Guardian (Comment): Tesco has played it by the book in terms of crisis management – but when the integrity of the food chain is in doubt, the public reaction can be hard to predict.
  • The Guardian (Comment): Profits and fat executive pay packages at Barratt Development, Britain's biggest house builder, have been achieved on the back of loans and grants from the taxpayer.
  • The Daily Telegraph (Comment): For a growing body of opinion, 2013 promises to be a breakthrough year which unambiguously sets the world economy, and even many advanced economies, back on the road to recovery.
  • The Daily Telegraph (Comment): The increase in Chinese tourists visiting attractions outside their borders will be one of the more significant economic phenomena of the first half of this century.
  • Daily Mail (Comment – Alex Brummer): Administrator Deloittes, the only true winner from the crisis on the high street, thinks there is something to salvage from Blockbuster.
  • Financial Times (Lex): Boeing’s troubles stack up: Investors should sit tight. It is too early to say what the financial impact of the accumulating problems will be for the aircraft maker.
  • Financial Times (Lex): JP Morgan and Goldman are street’s ahead: All banks benefited from near-zero rates, which have encouraged risk-taking and the refinancing of debt – from consumer mortgages to junk bonds.
  • Financial Times (Lex): Alibaba’s hidden treasures: expectations are mounting for a full listing of the Chinese internet commerce group just as competition is mounting in its home market.
  • Financial Times (Lex): Europe’s retailers going home: retailers are drifting home to focus on core markets. That should be good news for returns, but business will not be easy in mature markets.

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