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Tuesday Papers: Canadian to take helm at the BoE

Tuesday Papers: Canadian to take helm at the BoE

Top stories

  • Financial Times: George Osborne brushed convention aside on Monday installing a foreigner, Mark Carney, governor of the Bank of Canada, as governor of the Bank of England with a mission to shake it up as it assumes sweeping new powers.
  • The Daily Telegraph (Comment): Mark Carney as new Bank of England Governor is a shock but probably a good one.
  • Financial Times: Qatar Holding has sold the rights to buy a large holding of Barclays shares that it received amid a controversial cash call at the height of the financial crisis, in a move that sent the UK bank’s share price sharply lower.
  • Financial Times: Lakshmi Mittal will fly into Paris on Tuesday for emergency talks with the president of France over an extraordinary industrial row in which the Indian steel magnate’s company was accused of “lying” and “blackmail” by a French minister.
  • The Daily Telegraph: Chief accounting officer of Hewlett-Packard sold $1.1 million of shares before Autonomy problems became public.
  • Financial Times: Investors have taken legal action against Hewlett-Packard over its allegedly overvalued acquisition of Autonomy with shareholders claiming the deal has contributed to the company’s plummeting stock price.
  • The Guardian: Hoax that Google had snapped up ICOA, a Wi-Fi firm, for $400 million caused the penny stock shares to briefly leap from 1 ¢ent to 5 ¢ents, as more than 3.321 billion shares traded hands before the stock was frozen.
  • The Independent: Warren Buffett, the billionaire investor who favours a greater burden on the wealthy, on Monday called for a minimum tax on America's millionaires but proposed a higher threshold for increased taxes on the rich than the one put forward by the White House.
  • Financial Times: GlaxoSmithKline signalled its growing appetite for consumer healthcare products in emerging markets with plans to spend more than ₤650 million to strengthen control over its subsidiaries in India and Nigeria.
  • Financial Times: Amazon sold $3 billion in bonds in its first debt offering in more than a decade on Monday, taking advantage of rock-bottom borrowing costs as it continues an investment drive that is withering its profits.
  • The Daily Telegraph: A senior Department for Transport official has drawn attention to civil service infighting over the West Coast rail bid fiasco by claiming there are “stark inconsistencies” in the accounts of those involved.
  • Financial Times: Indian power group Lanco Infratech plans to raise as much as $2 billion from China for new projects, in a further sign that heavily indebted Indian companies are turning to Chinese financing to fund future expansion.
  • Financial Times: Credit Suisse is to cut about 100 investment banking jobs in the UK as it pushes ahead with restructuring plans designed to find SFr4 billion of savings by 2015, according to a person familiar with the situation.
  • Financial Times: A UK watchdog has fined UBS £29.7 million for “significant control breakdowns” that allowed a rogue trader to lose $2.3 billion at the Swiss bank in 2011.
  • Daily Mail: Events and publishing group UBM is to end its self-imposed four-year tax exile after shareholders voted for it to relocate from Ireland to the UK.

Business and economics

  • Financial Times: Samsung Electronics has admitted breaches of labour regulations at its plants in China, as well as at those of outside suppliers.
  • The Daily Telegraph: Kate Mingay, one of the three civil servants suspended over the West Coast rail bid fiasco, has filed legal proceedings against the Department for Transport over the way she has been treated.
  • The Independent: European finance ministers last night secured a deal on a new debt target for Greece, opening the way for the latest instalment of bailout money to be released.
  • Financial Times: A report issued by the White House’s National Economic Council and Council of Economic Advisers says lifting taxes on the middle class could reduce consumer spending by $200 billion and reduce 2013 gross domestic product by 1.4%.
  • The Daily Telegraph: Gross domestic product growth of the UK in the third quarter is forecast to be revised down by the Office for National Statistics to 0.9% from 1% in the first estimate.
  • Daily Mail: The era of austerity could last until 2018 in Britain and VAT may have to rise to as high as 25% to help plug the hole in the public finances, the Chancellor was warned last night.
  • Financial Times: Mary Schapiro, chair of the US Securities and Exchange Commission, is stepping down next month after nearly four years in charge of the top stock market regulator.
  • Financial Times: Intrade, the leading prediction market for bets on events from elections to box office returns to terrorist attacks, has been charged by a US regulator for allegedly allowing US customers to illegally use its service.
  • The Daily Telegraph: Betfair has decided all bets are off in Greece after the Athens government warned the directors of online gambling companies they could face at least 10 years in prison if they do not apply for controversial new operating permits.
  • Financial Times: Financial institutions are taking a bigger portion of the dwindling number of lawsuits involving the UK’s biggest publicly traded companies.
  • The Independent: Quintain is aiming for about £150 million in property sell-offs as it funnels resources into its vast Greenwich and Wembley developments in London and cuts debt.
  • Financial Times: GMO, the Boston-based asset manager, says it has “given up” on the bond market, deciding to ditch long-dated sovereign debt as investors continue to pour billions into government bonds, including US Treasuries.
  • The Independent: Volker Beckers, group chief executive officer at energy provider RWE npower since 2010, is to step down from his role at the end of the year.
  • Financial Times: After years of rollercoaster prices, cocoa has been trading in a narrow band of between £1,400 and £1,700 a tonne.
  • Daily Mail: Cost-conscious pork eaters wolfing down cheap cuts of ham and sausage as alternatives to lamb and beef have helped drive a 21% jump in half-yearly profit to £22.4 million at pig processor Cranswick.
  • Financial Times: Nintendo sold more than 400,000 Wii Us in the gaming console’s first week on sale, a disappointment compared with its Wii predecessor, although retailers are reported to be sold out of the unit.
  • The Independent: Online fashion retailer Asos has branched out into the luxury market by buying a multi-million pound stake in Covetique, which sells pre-owned designer clothes, shoes and handbags on the web.

Share tips, comment and bids

  • Financial Times: ConocoPhillips, the US oil and gas group, has agreed to sell its 8.4% stake in the giant Kashagan field in Kazakhstan to ONGC of India for about $5 billion, in the latest shake-up at one of the world’s largest oil projects.
  • The Guardian: It is thought L'Oréal paid $300-400 million to acquire California-based Urban Decay, which is owned by private-equity firm Castanea Partners.
  • Financial Times: An investment fund controlled by Japan’s government has agreed to rescue Renesas Electronics by buying a majority stake in the lossmaking chipmaker for about $2.2 billion, people familiar with the deal said on Monday.
  • Financial Times: Corporate predators have been given fresh warnings by the City watchdog to be more specific about their plans for target companies when they make a takeover bid.
  • The Guardian (Editorial): If Mark Carney is to make a difference, it can only be by changing policy.
  • The Guardian (Comment): You know Britain is in a financial mess when even establishment figures such as Rachel Lomax are calling for revolutionary thinking.
  • The Daily Telegraph (Comment): Cashing in on Barclays is a good deal for Qataris.
  • Daily Mail (Comment): Paul Tucker is virtually certain to head for the Bank of England's exit along with Sir Mervyn King. Charles Bean is staying on an extra year to ease the transition, then he will be gone. The price of new blood is the loss of valuable experience.
  • Financial Times (Lex): Barclays: cutting the investment bank is a risk to investors – which is perhaps why the Qataris selling down only a couple of months before the UK bank’s investor day.
  • Financial Times (Lex): Aberdeen: asset manager’s virtuous circle cannot last forever – when fund managers become too reliant on a single investment theme, the results may be sobering.
  • Financial Times (Lex): Olam/Muddy Waters: short sellers play a valuable role, but the attack on the Singaporean commodity trader does not so far appear to serve any wider purpose.
  • Financial Times (Lex): Essar Energy: the Anglo-Indian oil and power group is starting to benefit from higher refining margins but remains a work in progress.
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