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Friday Papers: New framework for sovereign defaults

Friday Papers: New framework for sovereign defaults

Top stories

  • Financial Times: A group representing more than 400 of the world’s largest banks, investors and debt issuers has agreed a plan for dealing with financially stricken countries and their creditors, in a bid to prevent a repeat of the wrangling that has pushed Argentina into default.
  • Financial Times: Royal Dutch Shell has asked Washington for permission to drill in the Arctic, off the coast of Alaska; the move keeps open the possibility that the oil group could resume its exploration campaign there next summer.
  • The Daily Telegraph: Scottish secession will endanger the recoveries on both sides of the border, according to Sir Mike Rake, president of the Confederation of British Industry.
  • Financial Times: David Cameron was on Thursday night fighting to restore order in his party after the defection of a leading Tory eurosceptic MP Douglas Carswell to Ukip threatened to reopen the party’s historic faultline on Europe.
  • The Daily Telegraph: The investors dumped stocks as evidence mounted of Russian military incursion into Ukraine prompting UN Security Council to call emergency meeting.
  • The Guardian: Business lending remains in the doldrums despite the economic recovery after the Bank of England's Funding for Lending Scheme (FLS) recorded another poor performance in the second quarter.
  • Financial Times: CSR, the UK chipmaker, said it rejected a takeover approach from Microchip Technology, a larger US rival, as it became the latest European company to become the target of a proposed tax inversion deal.
  • Financial Times: Apple is tightening up its privacy rules to ensure a new generation of health and fitness apps are not thwarted by growing concerns over how developers use personal data.
  • The Daily Telegraph: Global mining giants are set to face a slump in revenue during the next 12 months as the iron ore price by falls by 36% this year; iron ore price has fallen to $87 per ton having started the year at around $140.

Business and economics

  • Financial Times: AA, the British road recovery specialist that floated just two months ago, has announced the departure of its chief executive and finance director following a power struggle with the team that took over the company.
  • Financial Times: David Cameron’s promise to cut UK immigration to the “tens of thousands” by the next election has been derailed by a surge in workers from the EU which has pushed net migration up to nearly a quarter of a million, the highest in three years.
  • Financial Times: Growing economic confidence among UK shoppers is feeding through to the high street, with retailers more positive about their prospects than at any time in the past 12 years.
  • Financial Times: François Hollande has called for a special eurozone summit to agree measures to boost growth and soften the tempo of budget deficit reduction.
  • Financial Times: Hong Kong authorities have raided the home of Jimmy Lai, the media tycoon and fierce critic of the Chinese government, in connection with a bribery investigation.
  • Financial Times: Narendra Modi on Thursday kick-started a drive to open bank accounts for 75 million poor Indian households, part of a campaign to draw all citizens into the formal financial system.
  • Financial Times: The exuberant mood of the European IPO market in the first half of this year has been cooled by the underperformance of several high-profile recent flotations.
  • Financial Times: Deutsche Bank has been fined £4.7 million in the UK for inaccurately reporting more than 29 million transactions to the City regulator, exposing yet another setback to the lender’s efforts to improve its reporting structures.
  • Financial Times: Shares in one of China’s largest property developers, Country Garden, sank as much as 7.2% after it launched a deeply discounted rights issue in an attempt to lower its leverage as the country’s property slowdown deepens.
  • Financial Times: Bouygues said that sales would fall this year as the French construction, media and telecoms conglomerate reported a 61% drop in operating profit from weaker public sector orders and a telecoms price war.
  • Financial Times: Samsung Electronics has been hit by new allegations of child labour in China, just a month after activists found evidence of child workers at another Chinese contractor used by the South Korean company.
  • Financial Times: The Polish government’s excise duty increase on strong alcohol and a weaker Czech koruna, led to a 10% drop in first-half sales at Stock Spirits, the UK-based distiller that sells more than one in three vodka bottles in Poland.
  • Financial Times: Impala Platinum suffered a more than 70% drop in its annual profit as the mining group counts the cost of a five-month strike.
  • Financial Times: Escalating fears over the potential impact of sanctions on Russia are adding to the problems facing Petropavlovsk as the gold miner races to refinance its debt.
  • Financial Times: Youku Tudou, China’s largest video hosting website, announced the creation of its own film studio Thursday in a move to capture a larger slice of the film industry.
  • Financial Times: Chinese smartphone users are taking to mobile ecommerce faster than expected, creating a boom for mobile internet companies.
  • Financial Times: Malaysia has approved the most radical restructuring of Malaysia Airlines since the national carrier was established in the 1970s, proposing to cut about a quarter of staff, abandon some long-haul routes and launch a new business plan to restore its fortunes after the tragic loss of two jetliners.
  • Financial Times: Online readership of regional newspapers rose more than 60% in the first half of 2014, double the rate of growth at national newspaper sites, including MailOnline and the Guardian.
  • Financial Times: Gulf Keystone Petroleum is planning the return of evacuated staff to the Kurdistan region of Iraq amid a resumption of flights to its capital Erbil by some airlines.
  • Financial Times: Afren has suspended two more executives as part of an investigation at the Nigeria-focused oil explorer that led to its chief executive and chief operating officer being removed from office last month.
  • Financial Times: Pilots at Lufthansa’s low-cost Germanwings unit are set to strike on Friday after the airline failed to reach an agreement with a trade union in a long-running dispute over early retirement benefits.
  • Financial Times: Hays, the largest UK-listed recruiter, reported a 12% increase in pre-tax profit for the full year as 19 countries delivered record net fees, but suffered the effects of the strong pound.
  • Financial Times: Shares in Spire Healthcare rose after the newly listed hospital group posted a 10% rise in revenue on the back of higher sales to the National Health Service.
  • Daily Mail: Royal Bank of Scotland, which was this week fined £14.5 million for dishing out unsuitable mortgage advice, is under scrutiny from the regulators for its treatment of wealthy customers at its upmarket Coutts private banking division.
  • Daily Mail: Scottish independence will lead to a short-term hiring boom as the newly-formed country plugs gaps in its bureaucracy and services, one of the UK’s leading recruiters said Hays boss Alistair Cox.
  • Daily Mail: The ailing eurozone suffered another setback yesterday as international crises wiped out consumer confidence in Germany ‘in one fell swoop’; Research group GfK said its index of morale among the German people fell from 8.9 in August to 8.6 in September – the first decline since January 2013 and the biggest fall for more than three years.
  • Daily Mail: Britain must invest and export more to ensure that ‘stellar’ growth this year is not ‘a flash in the pan’, a leading business group warns today.
  • Daily Express: Paddy Power, the bookmaker, famed for its controversial advertising, took a £27 million hit after a string of sporting results went against it.
  • The Guardian: Retailers are ending the summer on a high and are feeling more confident than at any time in the last 12 years following a sales surge in August.
  • The Guardian: Lidl is to stop door-to-door deliveries of its traditional promotional leaflets as it switches to TV, social media and cinema advertising in a bid to broaden its customer base.
  • The Guardian: The US economy rebounded more strongly than first believed in the second quarter, the Commerce Department announced Thursday; gross domestic product – the broadest measure of the economy’s health – grew at an annualized rate of 4.2% for the three months to the end of June, according to the Commerce Department’s revision of the number.
  • The Independent: The sales collapsed at the pricey casual fashion brand Abercrombie & Fitch, and its stablemate Hollister in the face of cheaper, “fast fashion” retailers such as H&M and Zara.
  • The Daily Telegraph: Google unveiled drone to deliver aid to remote areas called Project Wing, developed by the same team that created the self-driving car, is designed to fly aid to inaccessible areas.
  • The Daily Telegraph: Pernod Ricard unveiled a signicant drop in annual sales and profits after the owner of Martell cognac was hit by anti-extravagance policies in China.
  • The Daily Telegraph: Russia slowdown helped push Aeroflot into the red as state-controlled carrier posted 1.9 billion rouble (£31 million) loss in the first half.

Share tips, comment and bids

  • Financial Times: More than two dozen companies across Europe are preparing to float before December, with an estimated 10 expected to announce their plans in the next few weeks, according to bankers.
  • Financial Times: Spain’s Telefónica has stormed ahead in the battle for Brazil’s telecoms market, convincing Vivendi to choose its €7.45 billion offer for the French group’s Brazilian broadband business.
  • Financial Times: Melrose Industries is gearing up to sell its Elster water business as the engineering turnround specialist became the latest UK company to be hit by a strong pound.
  • Financial Times: Another of China’s four big “bad banks” has successfully raised pre-listing capital, with China Huarong Asset Management attracting $2.4 billion from investors led by Warburg Pincus, Goldman Sachs and Malaysia’s Khazanah.
  • Financial Times: US private equity group Advent International has invested in a Brazilian national park service provider whose assets include a shareholding in the company operating the Christ the Redeemer statue in Rio de Janeiro.
  • Financial Times (Lex): Lending Club: neither a borrower nor a lender.
  • Financial Times (Lex): Paramount Group: NY or SF.
  • Financial Times (Lex): QE in Europe: Yield to wurst.
  • Financial Times (Lex): Bouygues: Hang ups.
  • Financial Times (Lex): Pernod Ricard: flagging spirits.

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