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Friday Papers: Deutsche Bank warned on commodity trading

Friday Papers: Deutsche Bank warned on commodity trading

Top stories

  • Financial Times: Germany’s financial watchdog has ordered Deutsche Bank to do more to ensure that commodity prices cannot be manipulated by its traders, in the latest sign that authorities believe some of the world’s largest financial markets are still open to abuse.
  • The Guardian: Britain's 10 million mortgage payers have been warned to ready themselves for dearer borrowing costs after a Bank of England policymaker said stronger-than-expected growth meant the era of ultra-cheap money was drawing to a close.
  • Financial Times: General Electric has revised its offer for French industrial champion Alstom in an attempt to appease government concerns and strike a killer blow against a rival bid by Siemens and Mitsubishi Heavy Industries; GE and Alstom will enter into a 50:50 joint venture over their combined power grid assets and another joint venture containing Alstom’s renewable energy assets.
  • The Daily Telegraph: Demand for UK-made goods is on the rise but the strengthening of the pound could undermine exports, CBI has warned.
  • The Independent: Rolls-Royce, the troubled aero-engine manufacturer, has moved to win back the support of investors with a £1 billion share buyback as it shelved plans for major acquisitions.
  • Financial Times: The decision of Federal Reserve Bank of New York to quadruple its trading with governmentmoney market funds in the repurchase or “repo market” is a sign that the central bank is now engaging more directly with the shadow banking system at the expense of large Wall Street banks.
  • Financial Times: A Whitehall initiative to loosen the hold of big business on government contracts has come under fire from cabinet ministers, who have told the prime minister that “shambolic” IT provision by smaller firms has brought their departments to a virtual standstill in recent weeks.
  • Financial Times: Barack Obama said on Thursday he was sending up to 300 “military advisers” to Iraq to help its embattled government fight back against Sunni insurgents who have pushed the country to the brink of a sectarian civil war.
  • The Guardian: The energy firm npower has been told to report to Ofgem every month on its progress in reducing late billing or risk having to scrap some of its telesales activities, under the latest crackdown by the energy regulator.
  • The Guardian: UK retail sales fell for the first time since January last month despite World Cup fever which drove higher sales of football shirts; shoppers generally proved unwilling to spend last month with the volume of retail sales down 0.5% over the month in May, compared with a 1% increase in April as consumers stocked up on goods for Easter.
  • Daily Mail: Lloyds bosses have opted to float a bigger slice of spun-off lender TSB than expected to capitalise on a late surge in demand from retail and institutional investors; the state-backed lender will offload 35% of TSB today, rather than the 25% it had originally earmarked.

Business and economics

  • Financial Times: Paolo Scaroni, former chief executive of Italian oil group Eni, ousted by incoming prime minister Matteo Renzi last month, is set to join Rothschild as the investment bank’s deputy-chairman.
  • Financial Times: Virgin Trains has won its two-year battle to retain the West Coast main line rail contract and will run the line’s services until April 2017 after promising to increase the number of standard seats and improve services.
  • Financial Times: Jaguar Land Rover will hire 250 new workers at its Liverpool factory to build the British carmaker’s latest model, in another boost to the UK car industry.
  • Financial Times: Amazon has a decent shot at shaking up a smartphone market controlled by Samsung and Apple as well as selling more of everything to its customers with its new Fire smartphone, unveiled on Wednesday in Seattle; but first, it has to find a way to convince consumers to buy the phone.
  • Financial Times: BT has claimed victory over rivals seeking to change the price they pay to use its superfast broadband network after the UK telecoms regulator dismissed a complaint about alleged abuse of its dominant position.
  • Financial Times: Having done their best to ride out a two-year slump in global coal prices, Australian miners are shedding thousands of jobs as they mothball high-cost mines, sell non-core assets and drive efficiencies across their operations.
  • Financial Times: Citigroup is shifting its number two investment and commercial banker, Mark Slaughter, to head its Asian operations, highlighting the US bank’s confidence in the region’s potential.
  • Financial Times: The Swiss National Bank has urged UBS and Credit Suisse to improve their leverage ratios, warning that both banks continue to face substantial legal and financial risks.
  • Financial Times: Shares in BlackBerry, the Canadian smartphone maker, jumped more than 11% in morning trading as improved revenues and a modest net profit in its latest quarter suggested that a turnround effort by John Chen, chief executive, was bearing fruit.
  • Financial Times: Peter Horrell is to leave his job as chief executive of Barclays’ wealth management division nine months after being appointed to the role, following a structural overhaul of the business.
  • Financial Times: The ever-bullish entrepreneur, Rob Terry, will relinquish some of his executive responsibilities at insurance company Quindell, in an apparent attempt to restore calm following an attack by short-sellers and a failure to win a listing on London’s main stock market.
  • Financial Times: A windy winter helped push up underlying profits at Infinis, the renewable energy generator floated by Guy Hands’ Terra Firma private equity group in November.
  • Financial Times: GDF Suez and Santos have abandoned plans for a $10 billion liquefied natural gas project off northern Australia amid concerns over rising costs and potentially weaker LNG prices as Russia and other suppliers enter the market.
  • Financial Times: Fiat-Chrysler plans to sell Treasury shares and its holding in sister company CNH Industrial to American investors, as its chief executive looks to drum up US interest in both companies.
  • Daily Mail: Struggling American Apparel has ousted its controversial founder Dov Charney amid allegations of misconduct; US fashion chain’s board unanimously voted to replace the 45-year-old as chairman and suspend him as chief executive and president.
  • Daily Mail: YO! Sushi has opened its 70th outlet in the UK at Baker Street in London; Japanese restaurant chain, founded by entrepreneur Simon Woodroffe, plans to open ten sites across the UK by the end of 2014, and last month announced plans to open 50 outlets in the US during the next six years.
  • Daily Mail: The mortgage market is slowing down with total lending in May unchanged on the previous month, according to the latest data; the Council of Mortgage Lenders said gross lending in the month amounted to £16.5 billion - exactly the same as amount lent in the previous month, but 12% higher than in May 2013.
  • Daily Mail: Private investor holdings of UK stocks have soared to a post-crash high of £238.8 billion - just 3.5% short of the record set in 2007; the 11.3% stake private investors have built up in London-listed companies makes them the second-largest group of stockholders in the UK market.
  • Daily Express: Pinewood Shepperton, home to the James Bond movies, was given a new licence to thrill yesterday after the Government gave it the green light to double the size of its film studios.
  • The Guardian: Audi has drawn up blueprints for a range of high-performance electric cars to take on US firm Tesla Motors, according to sources at the German carmaker.
  • The Guardian: Waitrose beat off competition from Aldi, Lidl, Marks & Spencer and Ocado and was chosen by the consumer association for "performing consistently highly for its in-store and online offerings".
  • The Guardian: Britain's construction industry is expected to cool during the summer following a slowdown in the number of new contracts.
  • The Independent: The housing market may not be slowing after all, the Council of Mortgage Lenders warned yesterday; the CML said month-on-month gross mortgage lending was flat in May at £16.5 billion, although its chief economist, Bob Pannell, cautioned that the recent tightening of lending criteria in the Mortgage Market Review (MMR) had blurred the picture.
  • The Independent: Markit, the financial data giant created in a converted barn in Hertfordshire 12 years ago, has gone public on the Nasdaq stock market, making a multi-millionaire of its founder and turning dozens of its top staff into millionaires.
  • The Independent: A former Goldman Sachs trader has filed an arbitration complaint against the Wall Street giant because his multi-million bonus wasn't big enough; Deeb Salem, a Princeton graduate and former mortgage trader at the bank, claims his massive $8.25 million bonus for 2010 does not reflect his performance and is seeking an additional $5 million in compensation.
  • The Independent: Sony chief executive Kazuo Hirai has clung onto his job in a tense annual general meeting in Tokyo despite after a year of heavy losses.
  • The Daily Telegraph: Shire that is seen as takeover target due to tax base in ireland is holding talks with US drug maker AbbVie.
  • The Daily Telegraph: IMF flagged up the problems with EU banking union underscoring the need to have sufficient funding to handle a large bank that gets into trouble.
  • The Daily Telegraph: Total number of spills of oil and gas in North Sea is up by 19% but major leaks have declined, Oil & Gas UK report has revealed.

Share tips, comment and bids

  • Financial Times: Shares in Man Group rose sharply after the UK hedge fund manager announced a deal to buy Boston-based Numeric for an initial price of $219 million that will help expand its presence in the US.
  • Financial Times: Santander has taken another step to bolster its balance sheet by selling a 50% stake in its global custody business to a group of investors led by Warburg Pincus, the US private equity group.
  • Financial Times: Axel Springer, the German publisher whose chief executive is fighting to curb Google’s dominance of online search, has acquired a minority stake in a French search company, Qwant, that emphasises data privacy.
  • Financial Times: KKR and a group of institutional investors are injecting a total of $3.5 billion into First Data Corp, to reduce the payment processing company’s $24 billion debt burden – and potentially prepare the way for a stock market flotation.
  • Financial Times: Gala Coral has called “eyes down” for the sale of its 135 bingo clubs, formally setting in motion an auction of the gambling division that it hopes will generate bids of up to £300 million.
  • Financial Times (Lex): BlackBerry: message berried.
  • Financial Times (Lex): Amazon: catching Fire?
  • Financial Times (Lex): Iron ore: a market fractures.
  • Financial Times (Lex): IGT: ding, ding, ding, ding.
  • Financial Times (Lex): American Apparel: looking for a vision.

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