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Wednesday Papers: Goldman chief in warning over cuts

Wednesday Papers: Goldman chief in warning over cuts

Top stories

  • Financial Times: The financial industry should not go “overboard” in cutting costs in reaction to current market conditions, the chief executive of Goldman Sachs has warned.
  • The Daily Telegraph: Barclays faces having to reveal the names of staff linked to attempts by the bank to manipulate Libor at a London High Court hearing on Tuesday.
  • The Daily Telegraph: The US budget deficit rose 22% in October from a year ago, to $120 billion, as spending outpaced revenues, Treasury Department data released Tuesday showed.
  • The Daily Telegraph: Vodafone swings to a £492 million first-half loss after slashing the value of its crisis-hit businesses in Spain and Italy by £5.9 billion and signalling that contagion from the region is spreading to other territories including Britain.
  • The Independent: Greece rushed to markets yesterday to raise vital cash to avoid bankruptcy as its international creditors further delayed payment of a €31.3 billion loan installment.
  • Financial Times: BP has paid its Russian oligarch partners $325 million to drop all outstanding litigation against it, allowing the British oil company to strike new deals and exploration agreements with state-owned Rosneft.

Business and economics

  • The Guardian: US authorities have reached a $210 million settlement with the BNY Mellon subsidiary Ivy Asset Management for advising clients to invest with the ex-financier Bernard Madoff, whose multibillion-dollar fraud landed him in federal prison.
  • The Daily Telegraph: Online video game pioneer Zynga said that its chief financial officer David Wehner is leaving to join Facebook, as the company also revamped its senior management.
  • The Independent: Paul McCartney's former bodyguard has become the third director to leave G4S following the company's Olympics security debacle.
  • Financial Times: Anglo American, the mining company hit by the resignation of its chief executive and continuing wildcat strikes at its South African operations, said costs at a large iron ore project in Brazil would be $2 billion higher than expected.
  • Financial Times: US regulators have proposed three options for fundamental reform of the $2.6 trillion money market fund industry in an effort to minimise the alleged systemic risk it poses.
  • Financial Times: Vivendi, the French entertainment and telecoms conglomerate, has increased its adjusted net income target to €2.7 billion for 2012 as it benefits from strong sales of video games at Activision Blizzard.
  • The Daily Telegraph: Britain's digital media industry has been handed a major vote of confidence after veteran Hollywood mogul Peter Chernin took a stake in Base 79, a business which runs television-style channels on YouTube.
  • The Daily Telegraph: Crisis talks over the European Union budget collapsed in disarray after MEPs refused to turn up to discuss their demand for an extra £13.8 billion in Brussels spending over the next year.
  • Financial Times: CRH has lowered its 2012 earnings forecast because of disruption at its US operations caused by Hurricane Sandy and continued weakness in European markets.
  • The Daily Telegraph: The power company E.ON has lowered its profit outlook for next year, citing economic weakness and structural changes in the energy sector following the decision to phase out nuclear power in Germany.
  • Financial Times: The British Chambers of Commerce is urging George Osborne to adopt a £3.8 billion plan to boost growth, paid for through deeper cuts in welfare and other areas of public spending.
  • Financial Times: The growing use of nanotechnology has buoyed first-half demand at Oxford Instruments.
  • The Independent: Royal Mail reported a huge increase in half-yearly profits today as growth in parcel deliveries made up for a continued fall in the number of letters being sent.
  • Financial Times: Cisco revenues rose 6% in the company’s first fiscal quarter to $11.9 billion, above the 4% growth expected by Wall Street, despite a 10% drop in the company’s operations in Europe.
  • The Daily Telegraph: Concerns over the online gaming industry exploded on Tuesday after bwin.party's co-chief executive was questioned by police in Brussels amid allegations the company is taking business "illegally" from punters in Belgium.
  • The Independent: Royal Bank of Scotland's chief executive, Stephen Hester, last night warned members of the Parliamentary Commission into Banking Standards that plans to force banks to "ringfence" retail banking could create a "moral hazard" as a result of them expecting a bailout.
  • Financial Times: An increase in occupancy rates and its rent roll pushed up first-half profit at Workspace Group.
  • The Daily Telegraph: Litigation costs stemming from the Libor scandal are likely to see banks' credit ratings downgraded, agency Moody's has announced.
  • The Guardian: In an apparent U-turn, the government is to consider removing restrictions that had threatened to strangle its own solution to the crisis in occupational pensions.
  • The Independent: Jersey's financial regulator has launched an investigation into HSBC's operations on the island following allegations that the bank opened offshore accounts for serious criminals.

Share tips, comment and bids

  • Financial Times: Private-client investment firm Quilter is to combine with Cheviot, the discretionary portfolio manager, in a deal that will create a wealth management business with £12 billion under management.
  • Financial Times: Allianz is to embrace a wider range of alternative assets from renewable energy to property loans to try to generate better yields from its €500 billion investment portfolio.
  • Financial Times: Kcell, the largest mobile operator in Kazakhstan, has confirmed plans to list a minority stake in London in a move that could raise as much as £500 million.
  • The Daily Telegraph: General Motors and alliance partner PSA Peugeot Citroen have halted talks on a deeper tie-up amid misgivings about the French carmaker's worsening finances and government-backed bailout, according to reports.
  • The Guardian: Facebook's beleaguered stock price will come under further pressure on Wednesday as 800 million shares held by employees and early investors become eligible for sale on the Nasdaq exchange.
  • The Independent: The beleaguered South African platinum miner Lonmin has made an impassioned plea to investors to support its $817 million rights issue, with a stark warning that its future would be in jeopardy if they didn't.
  • Daily Mail: Rumours have been circulating that BAE could be on the verge of going on the acquisition trail in the US and has Stanford-based Hexcel Corporation in its sights.
  • The Independent: Harry Winston, the luxury jeweller with outlets in Harrods and in Bond Street, is expanding the mining side of its business after paying BHP Billiton $500 million for a controlling stake in a Canadian diamond mine.
  • Financial Times: Outsourcing specialist Capita on Tuesday said that it had won £1.7 billion in new contracts and renewals so far this year.
  • Financial Times: Carlyle is to lead a $210 million private equity investment in an African agricultural commodity merchant - Export Trading Group - one of the world’s largest traders of cashew nuts.
  • The Daily Telegraph (Comment): The catch-up boom in China, India, Brazil is largely over and will be followed by a drastic slowdown over the next decade, according to a grim report by America's top forecasting body.
  • The Daily Telegraph (Comment): Platinum miner Lonmin has accused its biggest shareholder, Xstrata, of muddying the waters over its $817 million rescue rights issue by launching an attack on its management.
  • Daily Mail (City Focus): IMF head Christine Lagarde has raised an eyebrow at Jean-Claude Juncker, who chairs the eurogroup of finance ministers, over his claims that Greece will get a two-year extension to its debt reduction timetable.
  • Daily Mail (Comment): Marjorie Scardino and Cynthia Carroll leaving the tiny club of FTSE 100 women chief executives has not enhanced the goal of more female role models in the boardroom. But help could be on the way in the shape of Moya Greene.
  • The Independent (Comment): There has been a certain amount of hot air vented over revelations about potential fixing of energy prices, revealed by a whistleblower, who worked for a price reporting agency, in a blaze of publicity.
  • Financial Times (Lex): Vodafone has delivered mixed messages with its latest results, but it still has a well-articulated vision.
  • Financial Times (Lex): Eon – rise of solar and wind power is undermining the business models of old-style electricity providers, particularly in Germany.
  • Financial Times (Lex): StanChart’s emerging markets exposure has put its shares at a premium to the rest of the sector – but its shine is fading.
  • Financial Times (Lex): Lonmin – scaring investors into backing a rights issue is no way to behave. Time for a change of management perhaps.

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