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Friday Papers: US jobless fall raises pressure for rate rise

Friday Papers: US jobless fall raises pressure for rate rise

Top stories

  • Financial Times: The US unemployment rate dropped to 6.1% last month, bolstering hopes that the world’s largest economy is gaining momentum and stoking belief that the Federal Reserve will increase interest rates sooner than expected.
  • Financial Times: European officials have demanded that Luxembourg hand over documents relating to Amazon’s tax affairs as the online retail giant becomes embroiled in a crackdown that has already drawn in Apple, Starbucks and Fiat’s financial arm.
  • The Guardian: Recovery in some of the eurozone's worst hit crisis economies is speeding ahead, according to the latest snapshot of the private sector in the single currency bloc.
  • The Daily Telegraph: Uber registered early victory in battle with cabbies as London as Transport for London cleared private car hailing app for use in London, while High Court case over its legality is delayed.
  • The Guardian: Britain's service sector is gearing up for a strong second half to the year following a surge in new orders last month, according to figures from financial data provider Markit.
  • Financial Times: The foreign exchange market needs “fine tuning” rather than heavy handed reform, the chairman of Barclays argued on Thursday, as he unveiled a new compliance academy aimed at raising standards within the bank.
  • Financial Times: One of London’s highest profile listings of the year has come in for fresh criticism after an investment bank that brought Saga to the market said the over-50s specialist was worth about £90 million less than its listing price of £2.1 billion.

Business and economics

  • Financial Times: Google has begun reinstating links to newspaper stories it had scrubbed from its search engine only days before, highlighting the battles that have already broken out over Europe’s new “right to be forgotten” regime.
  • Financial Times: The British private investigator detained in China in connection with his work for GlaxoSmithKline has said he feels “cheated” by the UK pharmaceuticals company as Chinese authorities prepare to try him in secret next month.
  • Financial Times: CBI, Britain’s biggest business lobby group has warned that the education system must prepare young people better for life beyond school or risk wasting their talents and failing to solve the UK’s worsening skills crisis.
  • Financial Times: The UK’s top earners are heavily concentrated in London and have experienced a bigger fall in real wages than other workers since 2011, a study by the Office for National Statistics has found.
  • Financial Times: Sir Roger Carr, the chairman of BAE Systems, has accused politicians of “demonising” big business during an event designed to improve Labour’s rocky relationship with the corporate world.
  • Financial Times: A group of investors in Argentine bonds denominated in euros and governed by UK law is seeking to strike down a New York court ruling that has left them unpaid, amid concern that the long arm of US law is disrupting international markets.
  • Financial Times: Chinese and South Korean leaders have pledged to sign a bilateral trade agreement by the end of this year and introduce direct trading of their currencies to spur cross-border renminbi transactions and deepen economic ties in two of Asia’s largest economies.
  • Financial Times: Fidelity Worldwide Investment, one of the world’s biggest fund management groups, has for the first time voted against the executive pay proposals of a majority of FTSE 350 companies it invests in.
  • Financial Times: Eurozone banks raised €45 billion of common equity tier one capital - the main measure of financial strength - between July of last year and May 2014, including deals announced but not completed, according to figures published last week by the European Banking Authority; as one European bank raises capital, the focus shifts to rivals with weaker balance sheets and the pressure increases on them to bolster their capital positions.
  • Financial Times: Balfour Beatty shares suffered another steep fall on Thursday after the British construction company warned of a “further worsening” in trading at its problematic engineering services division.
  • Financial Times: Warren Buffett has praised the way that Jamie Dimon handled the public disclosure of his throat cancer diagnosis, saying that executives have a responsibility to provide shareholders with fast and accurate information about their health.
  • Financial Times: Nazir Razak, one of the most prominent bankers in southeast Asia, is stepping down as chief executive of CIMB after 15 years running Malaysia’s second-largest bank by assets.
  • Financial Times: Serco has warned that writedowns on the value of some major contracts might affect full-year results as new chief executive Rupert Soames scrutinises the outsourcer’s obligations.
  • Financial Times: BMW will invest $1 billion to build a car plant in Mexico as it follows other premium automakers in seeking to use the low-cost location to tap growing sales in North America.
  • Financial Times: Genel Energy, the Kurdistan-focused oil explorer headed by former BP chief executive Tony Hayward, has maintained production and revenues guidance for the year in spite of the turmoil raging in nearby areas of northern Iraq.
  • Financial Times: Zurich Insurance will take a $300 million loss on the sale of part of its Russian insurance business, as it pushes ahead with plans to refocus its operations.
  • Financial Times: YouTube has postponed a controversial plan to block certain record labels from its video platform, following an outcry from the creative community and growing scrutiny from European regulators.
  • Financial Times: Erste Group warned that it will make a net loss of up to €1.6 billion this year, after the Austrian bank increased its provisions in Hungary and Romania.
  • Financial Times: Poundland reported nearly £1 billion in annual sales on Thursday, just three months after the British discount chain listed its shares on the London Stock Exchange.
  • Financial Times: Proposed changes to the corporate governance code would weaken the assurances a company’s directors must currently give shareholders about its ongoing viability, a group of influential investors has warned.
  • Financial Times: Glencore has told its employees in Australia it paid A$400 million in corporate income tax over the past three years in response to media claims the Switzerland-based miner is aggressively avoiding tax.
  • Financial Times: Greene King illustrated a split in the recovery of UK consumer spending, with its outlets in London flying while pubs in the north posted a drop in sales over recent weeks.
  • Daily Mail: Chocolatier Thorntons is losing its soft centre, according to a fourth-quarter trading update that showed a turnaround plan on course to deliver higher profits; the firm also announced a new debt facility and asked investors to allow it to borrow more for expansion.
  • Daily Mail: The top trio at film and TV rights firm Entertainment One saw their pay boosted by more than 10 times last year – as their global success Peppa Pig brought home the bacon; chief executive Darren Throop, film division boss Patrice Theroux and finance director Giles Willits picked up a combined £2.4 million in 2013.
  • Daily Mail: Supermarket chain Asda is to cut 1,360 jobs as part of an overhaul of its store management structure which it says must 'adapt to change.'
  • Daily Mail: Insurers are being asked by the Bank of England how they will stay in business as momentous pension reforms due next year are expected to decimate the annuities market.
  • Daily Mail: British Gas is expected to compensate thousands of customers after overstating the amount that they would save if they switched to one of its tariffs.
  • The Guardian: Labour should love entrepreneurs who create jobs, the shadow chancellor, Ed Balls, said on Thursday, attempting to seal a new relationship with businesses and stop the mixed the party's messages to them.
  • The Guardian: Ryanair is restarting British domestic services, with daily flights from Glasgow and Edinburgh to London starting in the autumn.
  • The Guardian: Argos is extending its tie-up with online marketplace eBay to enable online shoppers to pick up goods at 650 stores as they capitalise on the growing trend towards click-and-collect services.
  • The Guardian: Australian retailer David Jones is urging its shareholders to approve a $2.2 billion takeover despite a wrangle between its major investor and South African suitor Woolworths.
  • The Independent: President Barack Obama has warned US banks that the bonus-driven culture of Wall Street is still a risk to the stability of the financial system.
  • Daily Express: The World Cup has given cinemas a kicking, with audiences in the UK and Ireland falling, according to Cineworld.
  • The Daily Telegraph: IMF warns of negative spiral in France as recession looms again for the country that sunk into an economic malaise and could take years to climb back out.
  • The Daily Telegraph: Dairy Crest has positioned itself to meet rising Chinese demand for British milk - and its profit-rich whey - by partnering with Fonterra of New Zealand.

Share tips, comment and bids

  • Financial Times: Hydrogen fuel cell company Intelligent Energy has raised about £40 million in an initial public offering in London; it plans to use the money raised in its Indian operations, which provide low-carbon emergency back-up power for mobile phone masts.
  • Daily Mail: Johnnie Walker owner Diageo has finally gained controlled of India’s largest spirits company in an attempt to pep up sales in the world’s biggest whisky market.
  • Financial Times (Lex): Barry Callebaut: full up.
  • Financial Times (Lex): Rio Tinto: aluminium’s moment.
  • Financial Times (Lex): Balfour Beatty: deconstruction.
  • Financial Times (Lex): China A shares: connect the stocks.
  • Financial Times (Lex): Enel: restructuring needed.

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