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Wednesday Papers: Dimon wins clear victory to keep both jobs

Wednesday Papers: Dimon wins clear victory to keep both jobs

Top stories

  • Financial Times: Jamie Dimon won a decisive victory over shareholder activists looking to strip him of his chairmanship of JPMorgan Chase but investors used the bank’s annual meeting to deliver a big protest vote against three of its directors.
  • Financial Times: Tim Cook, Apple‘s chief executive, mounted an emphatic and unapologetic defence of the US technology group’s tax practices, as US senators quizzed him over congressional charges that the company avoided billions of dollars in taxes on international profits.
  • The Guardian: Speculation about a government sell-off of Royal Bank of Scotland and Lloyds Banking Group was escalating on Tuesday night amid reports that the International Monetary Fund is urging the Treasury to accelerate its disposal of the £65bn stakes in the two bailed-out banks.
  • Financial Times: Tech companies like Google and Facebook will not have to offer jobs to Americans before hiring foreign workers under an immigration reform deal brokered on Capitol Hill on Tuesday that represented a major victory for Silicon Valley.
  • The Independent: Britain’s Competition Commission is looking to crack open the cement market by forcing the biggest three makers-- Hanson UK, Cemex and Lafarge Tarmac--to sell off production facilities.
  • Financial Times: BP has stepped up its efforts to challenge what it believes are unjustified compensation payments under the multibillion-dollar settlement it agreed with victims of the 2010 Gulf of Mexico oil spill.
  • The Guardian: Royal Mail has reported a 60% increase in pre-tax annual profits to £324 million, as the government prepares to sell off the 497-year-old postal service in the most ambitious privatisation since British Gas in 1986.
  • The Daily Telegraph: Vodafone has defended its decision not to return any of a £2.1billion windfall from Verizon Wireless to shareholders on Tuesday, arguing it needed the cash for investments and tax bills.
  • The Independent: Andy Halford, the chief financial officer, admitted that Vodafone had not paid much UK corporation tax in some years, but said that must be seen in the context of the company putting £7 billion into the Treasury's coffers for airwave spectrum.
  • Financial Times: Shareholders in G4S have expressed fears over the future direction of the company as chief executive Nick Buckles stepped down with a £16million package – despite presiding over last year’s failure to deliver an Olympics contract, and an abortive takeover of ISS.
  • Financial Times: Lawyers for Rajat Gupta, the former Goldman Sachs director convicted of insider trading, argued he should be given a new trial because he was not permitted to use evidence that would have provided an “innocent explanation” for his phone calls to the founder of Galleon Group immediately following a board meeting.
  • The Independent: Homeserve, the emergency repairs company at the centre of a long-running inquiry into alleged mis-selling, is bracing itself for a £6million fine from the City's watchdog.
  • Financial Times: SAP, the German business software company, wants to tap into a new talent pool by hiring hundreds of people with autism to programme and test its products.

Business and economics

  • The Guardian: Mark Carney, the incoming governor of the Bank of England, has warned Europe it must make "sustained and significant reforms" if it is to avoid a Japanese-style lost decade caused by austerity measures.
  • The Independent: The annual rate of inflation in Britain eased to 2.4% last month, thanks to falls in petrol prices and air fares, the Office for National Statistics reported on Tuesday.
  • Financial Times: Investment banks’ ability to reward junior traders with bonuses worth many times their salaries will be curbed by proposals that further widen the EU’s planned bonus cap.
  • Financial Times: Operating details of China’s first pilot carbon-trading scheme, in Shenzhen, have been released as it gets ready to launch next month, and as the country prepares to roll out seven pilot schemes by 2014.
  • Financial Times: Almost a quarter of teenagers in the US now use Twitter, a dramatic jump on last year that underlines how internet companies are battling to win fickle young users, according to a Pew Research Center report.
  • The Guardian: Marks and Spencer's chief executive Marc Bolland has told shareholders that if they are unhappy with the business they should sell their shares, as profit for the year to end of March fell 5.8% to £665 million.
  • The Daily Telegraph: Royal Dutch Shell has admitted it needs more women on its board but pleaded for “patience” as it tried to find suitable candidates.
  • Financial Times: Brian Krzanich, Intel’s new chief executive, is radically reshaping the company’s management structure in a shake-up designed to help the world’s biggest chipmaker expand faster in new markets beyond the smartphone and the tablet.
  • The Independent: Paragon, the buy-to-let mortgage provider, is applying for a banking licence in order to kickstart its consumer lending business.
  • The Daily Telegraph: Britvic's new chief executive is set to lay out plans for the soft drinks maker to continue as a standalone company, casting further doubt on its proposed merger with AG Barr, according to reports.
  • The Independent: Hundreds of jobs could go at Waterstones after the retailer launched a consultation with 560 managers as it seeks to slash costs and "secure the future" of the UK's last nationwide book chain.
  • Financial Times: A shift into so-called junk stocks unloved by investors earlier this year has underpinned the latest leg of the US equity bull market, propelling the S&P 500 into record territory.
  • Financial Times: Companies are increasingly using cheap debt to buy shares back from their own employees, highlighting how record low interest rates are helping to fill the pockets of senior executives.
  • The Independent: Carnival's shares sank 379 pence, or 16%, to 2013 pence on Tuesday as the firm said booking volumes had risen but the price cuts would dent yields by up to 3%.
  • The Guardian: Scottish & Southern Energy predicted to announce profits of up to £1.4 billion at a time when many are struggling to pay their bills.
  • Financial Times: Microsoft has unveiled the Xbox One, a next-generation console that gives as much emphasis to live television and other entertainment content as video games.
  • The Independent: Revenues at Greencore, the convenience foods and ready-meals maker, were flat at £573 million in the first half to end March but profits rose 10% to £26.5 million.
  • The Independent: Morissons, the Bradford-based grocer, grew its sales by 2.1% in the four weeks to 12 May, a marked improvement on flat or falling revenue for much of the last year, Kantar Worldpanel says.
  • The Guardian: Vodafone has delayed the launch of its 4G service until around September, a full 10 months after rival EE brought the first version of superfast mobile internet technology to the UK.

Share tips, comment and bids

  • The Daily Telegraph: Multi-billion dollar American and Canadian pension funds are being lined up to take stakes in Royal Mail when it is privatised, possibly as early as the autumn.
  • The Daily Telegraph: Hastings Insurance Group is considering selling a minority stake in itself that could value the Bexhill-based motor insurance company at up to £800 million.
  • The Guardian (Comment): Pressing the G8 to get tough on avoidance is hypocrisy while British dependencies like the Caymans are still in business.
  • The Guardian (Comment): Royal Mail: A business generating profits on this scale is worth vastly more to government than the proceeds of a sell-off.
  • The Daily Telegraph (Comment): We will find out from Ben Bernanke's testimony to Congress whether he aims to "taper" QE sooner or later. The markets are all on one side betting that it will be later. They are probably right, but they had better be.
  • The Daily Telegraph (Comment): Bubblenomics is back. Markets have become completely detached from economic reality – and it's going to get ugly.
  • Daily Mail (Comment – Alex Brummer): Given the catalogue of G4S’s recent mistakes, including the damage done to the company’s reputation globally as a result of the Olympic security debacle, sending Nick Buckles away with a huge cheque is not wise.
  • Financial Times (Lex): JP Morgan: The $6billion London Whale scandal, questions over risk oversight and the allegations of misleading regulators and investors did not sway shareholders’ belief in Jamie Dimon
  • Financial Times (Lex): Vodafone: Full-year numbers from the UK telecoms company are hardly a cause for celebration but they do provide a few clues to possible M&A deals
  • Financial Times (Lex): ICBC/Goldman Sachs: The deal performed on a private equity basis. Although its success was not certain Goldman took a risk and was rewarded. But now it’s time to move on
  • Financial Times (Lex): Burberry: UK luxury group is doing well in Asia but it should be providing more information about its performance after its recent profit warning

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