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Friday Papers: Eurozone economy fails to grow in second quarter

Friday Papers: Eurozone economy fails to grow in second quarter

Top stories

  • Financial Times: The eurozone’s economic recovery has shuddered to a halt, bolstering calls for the European Central Bank to take aggressive measures to boost growth and halt a slide towards deflation; gross domestic product was flat in the second quarter of 2014, compared with growth of 0.2% in the previous three months, according to official figures released on Thursday.
  • Financial Times: Rosneft has asked the Russian government for as much as Rb1.5 trillion ($42 billion) in support, in a clear sign of the growing cost of western sanctions against Moscow.
  • The Daily Telegraph: Bank of England denied Scottish currency talks; central bank rejected claim from Scottish Finance Secretary John Swinney that 'technical discussions' have taken place.
  • The Guardian: A Barclays document sent to shareholders has laid bare the full extent of the bank's legal woes, ranging from continuing court tussles over rigging interest rates to allegations of ripping off its own clients.
  • The Independent: Carillion has increased the pressure on rival Balfour Beatty by promising investors cost cutting measures and a dividend as it attempts to enact a merger.
  • Financial Times: Iraq’s prime minister, Nouri al-Maliki, announced late on Thursday he would step down after eight years in office and endorse the man chosen by his own political bloc to succeed him.
  • The Daily Telegraph: One share in Warren Buffett's Berkshire Hathaway now costs $200,000; shares in US investment giant, which has positions in Coca-Cola, IBM, Goldman Sachs and Tesco, set a new record on Thursday.
  • Financial Times: Coca-Cola is paying $2.15 billion for a 16.7% stake in Monster, sending shares in the world’s leading energy drinks maker up 22% in after-hours trading in New York.

Business and economics

  • Financial Times: Britain’s drug cost watchdog has given provisional approval for a £400 a day hepatitis C treatment that has ignited controversy on both sides of the Atlantic about the price of medicines.
  • Financial Times: Nearly 1 million working households in the UK are spending more than half their disposable income on housing costs, according to research that highlights the strain the combination of weak wages and expensive housing is placing on household budgets.
  • Financial Times: London is emerging as the world leader for crowdfunding with more of the online revenue raising campaigns being run out of the UK capital than cities in the US where the method of financing new ventures was born.
  • Financial Times: Financial rules brought in to address the huge wealth gap between football clubs risk having the opposite effect, according to the money men in the English and Scottish game.
  • Financial Times: HMRC announced on Thursday that users of offshore tax avoidance schemes were not eligible for the special rates aimed to encourage taxpayers to come clean over secret foreign bank accounts.
  • Financial Times: Companies in the UK’s nascent “sharing economy” could generate annual revenues of about £9 billion by 2025 but only if they fulfil their potential, according to research.
  • Financial Times: Moody’s Investors Service has warned that “beyond the tragic loss of life” the Ebola virus could wreak “significant” economic and fiscal damage on the west African countries worst affected by the disease.
  • Financial Times: Some of Britain’s biggest banks are expecting to secure concessions from the regulator over the new ringfencing regime, in an example of the industry’s fightback against tougher regulation.
  • Financial Times: A US proposal requiring executives of the world’s largest banks to defer compensation to prevent the kind of risk-taking that spurred the financial crisis has become bogged down in regulatory infighting, which has caused a critical Dodd-Frank financial reform mandate to languish for the past three years.
  • Financial Times: Asda has overtaken Marks and Spencer to become Britain’s second-biggest clothing retailer by volume, as the UK arm of Walmart defied the potentially damaging supermarket price war to increase its underlying sales.
  • Financial Times: Some of the fashion world’s biggest names are backing a fledgling New York ecommerce platform, Spring, that aims to use the familiarity of social media hallmarks to make shopping easier on a mobile phone.
  • Financial Times: Partnership, the annuity specialist whose shares have dropped 60% since George Osborne unveiled his pensions overhaul, has hit back at suggestions from larger rival Aviva that consumers are avoiding such companies because of concerns about their finances.
  • Financial Times: The revival of the UK housebuilding sector has boosted almost every point in the property cycle, from brickmakers supplying the raw materials, to online portals selling houses on the secondary market.
  • Financial Times: RWE, Germany’s second-biggest utility by market value, posted a 62% drop in profit on Thursday and announced plans to shut down more power stations.
  • Financial Times: Centamin delivered its first dividend to investors in spite of a sharp drop in earnings from its Egyptian gold mine; the UK-listed miner also reported lower production and higher costs during the first half of the year but stuck to its annual forecasts, suggesting it would deliver more output at better grades over the remainder of the year.
  • Financial Times: The revival of subprime lending has gathered pace after Provident Financial bought a car finance group that provides loans to customers who would be shunned from traditional lenders.
  • Financial Times: Orange has opened discussions with infrastructure groups about a sale of its mobile masts in Spain as it looks to cut costs in European markets.
  • Financial Times: Goldman Sachs has asked financial companies across Wall Street to invest $5 million-$6 million each to create a new online chat service, as an alternative to Bloomberg’s instant messaging.
  • Financial Times: Facebook is suffering a backlash from users pushed into downloading a separate app for messages as part of its strategy to dominate the smartphone with a portfolio of apps.
  • Financial Times: The new head of Rank Group, Henry Birch, insisted its casino and bingo venues would remain the “bedrock” of the business as he laid out plans to increase its exposure to digital channels.
  • Financial Times: Cineworld’s recent acquisition of Cinema City International is already bearing fruit, with the transaction providing a fillip to the cinema operator just six months after signing the deal.
  • Financial Times: Zoopla said traffic to its website and apps rose by more than a third as the online property portal released its first trading update since its stock market debut two months ago.
  • Financial Times: ThyssenKrupp said it hoped to achieve a positive full-year annual net income as management efforts to turn round the steel and capital goods group brought an end to a punishing run of three years of multibillion-euro losses.
  • Financial Times: Uber, the app-enabled taxi service, is facing a new challenge in Germany after Berlin’s city government voted to ban its use on the grounds of passenger safety.
  • Daily Mail: Marks & Spencer food boss Steve Rowe has put himself forward as a contender to replace embattled chief executive Marc Bolland.
  • Daily Mail: EBay users have been venting their fury after the website crashed for the tenth time this year – in the same week that it hiked its prices for sellers.
  • The Guardian: The number of homes repossessed by mortgage lenders fell to its lowest level in seven-and-a-half years in the first half of 2014, however borrowers have been warned to prepare themselves for future interest rate rises.
  • The Guardian: Supermarkets are grappling with their first significant fall in sales volumes since the second world war, according to analysts who warned shoppers' efforts to save money are having an "unprecedented effect" on the UK's major supermarkets.
  • The Guardian: Companies that offer consumer credit such as payday lenders, debt management firms and brokers must do more to make sure their advertising does not mislead customers, the City regulator said.
  • The Daily Telegraph: Brits spend £142 during drunken online shopping sprees and most drunken purchases take place on Amazon, according to new survey.
  • The Daily Telegraph: EE hopes customers to pay 50p to jump its customer service queue; UK's largest mobile phone company faced customer anger despite saying charge will be used to improve service.
  • The Daily Telegraph: Wind farm 'needs 700 times more land' than fracking site to produce same energy and shale gas site "creates the least visual intrusion" compared with wind or solar farm for same energy according to Government's former chief scientific advisor on energy.

Share tips, comment and bids

  • Financial Times: Indian billionaire Gautam Adani has struck a Rs20 billion ($321 million) power station deal with Lanco Infratech, the latest in a series of acquisitions involving industrial tycoons who are reshaping the country’s battered energy sector.
  • Financial Times: A Chinese-backed bid to take over Club Méditerranée has fallen through after a protracted legal battle that ended when the French stock market regulator gave the go-ahead for a rival offer.
  • Financial Times: Electrolux has confirmed it is in talks to buy General Electric’s appliances business, as the US conglomerate continues to streamline divisions to refocus on its industrial operations.
  • Financial Times: Barry Diller, the US media billionaire, has bolstered his portfolio of internet companies with the acquisition of Ask.fm, a social networking site that was singled out for criticism last year by David Cameron, the British prime minister.
  • Daily Express: Royal Dutch Shell has sold some of its older shale gas operations in the US for £1.26 billion as part of a massive restructuring programme.
  • The Independent: The doorstep lender Provident Financial bought the car finance specialist Moneybarn yesterday for £120 million as it looks to broaden its customer base.
  • Financial Times (Lex): RWE: R we there yet?
  • Financial Times (Lex): Walmart: crazy idea time.
  • Financial Times (Lex): Lenovo: cheerful, not cheap.
  • Financial Times (Lex): Adani Power: coal fired.
  • Financial Times (Lex): Carillion/Balfour Beatty: hard hats.

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