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Monday Papers: BNP board approves $8.9bn US settlement

Monday Papers: BNP board approves $8.9bn US settlement

Top stories

  • Financial Times: BNP Paribas has secured a partial concession on the eve of a record $8.9 billion settlement over alleged sanction violations that US authorities are expected to announce.
  • Financial Times: The Bank for International Settlements has warned that “euphoric” financial markets have become detached from the reality of a lingering post-crisis malaise, as it called for governments to ditch policies that risk stoking unsustainable asset booms.
  • The Guardian: Interest rates are likely to hit 5% within a decade, according to the outgoing Bank of England deputy governor for monetary policy; Sir Charlie Bean said it would be "reasonable" to expect borrowing costs to return to pre-recession levels in the long term – between five and 10 years.
  • The Daily Telegraph: Standard of living costs for families have risen five times more than earnings since before recession, figures show.
  • Financial Times: A British exit from the EU is “unimaginable”, according to Germany’s powerful finance minister, and Berlin will do everything in its power to keep the UK part of the union following the clash over Jean-Claude Juncker’s appointment as European Commission president.
  • Financial Times: The value of global mergers and acquisitions hit $1.75 trillion in the first six months of the year, a 75% rise on the same period last year and the highest since 2007.
  • Financial Times: Intensifying competition between global reinsurers is forcing them to provide cover for terrorism on terms they have sought to avoid since the September 11 attacks, brokers have warned.
  • Financial Times: The successful launch of euro-denominated bonds by two Russian banks has fuelled hopes that an easing of tensions in Ukraine will allow more Russian companies to access global capital markets.

Business and economics

  • Financial Times: The Chinese corruption scandal surrounding GlaxoSmithKline grew murkier on Sunday when it said senior executives had been sent a secretly-filmed sex tape of the company’s top manager in China shortly before Beijing opened its investigation into alleged bribery of doctors.
  • Financial Times: Labour will confirm on Monday that it will raise corporation tax if elected next year and is considering a tax break to equalise the treatment of debt and equity finance for companies.
  • Financial Times: Britain’s nearly 5 million small businesses are giving a cheer for the economic recovery but remain worried about a lack of access to credit, a shortage of skilled workers and poor broadband services.
  • Financial Times: Private companies are finalising bids for £800 million a year in contracts to run UK probation services, one of the government’s most ambitious privatisations so far.
  • Financial Times: Nestlé UK has become the first large British manufacturer to be accredited as a “living wage” employer, giving a boost to the campaign to tackle low pay.
  • Financial Times: A British government scheme to reward energy companies for keeping power plants available for back-up electricity generation will put £2 on the average annual household fuel bill, according to the minister in charge of the measure.
  • Financial Times: Barring a last minute deal with holdout creditors, Argentina will enter technical default for the second time in 15 years. But a 30-day grace period means it can still avoid formal default and most investors believe that, eventually, the country will settle in order to regain access to international markets.
  • Financial Times: Deutsche Post DHL is planning its largest investment in Britain in 14 years as it seeks to address the dramatic rise in global e-retailing and exploit an increase in trade with China; DHL, one of the world’s biggest parcel delivery groups, said it would invest £156 million improving sorting and aircraft landing facilities in the East Midlands and at Heathrow.
  • Financial Times: Bonds backed by delinquent US mortgages have staged a comeback as investors flock to the higher yields on offer from buying the securitisations and as big banks feel more comfortable selling the loans.
  • Financial Times: UK aerospace companies see big opportunities to export components to Chinese aircraft makers, and are also benefiting from a boom in sales to the Middle East, a new survey has found.
  • Financial Times: Kentucky’s state lottery is recruiting UK operator Camelot to advise on how to revive ailing sales, the latest US state contemplating British-style privatisation to stimulate gambling activity.
  • Financial Times: The partners in Israel’s biggest offshore natural gas field have reached a preliminary agreement on a $30 billion deal to supply gas to Britain’s BG in Egypt via a new undersea pipeline, in the biggest cross-border deal yet of its kind between the nascent Israeli industry and a neighbouring country.
  • Financial Times: Facebook has angered users after it emerged that a psychology experiment was conducted on hundreds of thousands of the social network's members without their awareness or consent.
  • Financial Times: France’s central bank has taken the first step towards the creation of a Paris-based renminbi clearing and settlement system.
  • Financial Times: AbbVie will this week step up its pursuit of Shire when the US drugmaker’s chief executive flies into London to pitch a proposed £27 billion takeover to shareholders.
  • Daily Mail: Retailer Sports Direct is braced for a showdown with investors on Wednesday as it makes a third attempt to win their approval for a lucrative bonus scheme for founder Mike Ashley and other staff.
  • Daily Mail: Regus, the global office space company targeting an expanding army of mobile workers, is hitting the shops after a deal with Britain’s biggest commercial property firm, British Land, to bring offices into retail parks.
  • Daily Mail: The Government will on Tuesday give fresh impetus to its ‘Mystery Shopper’ initiative, which tackles poor practices that prevent small firms from accessing £230 billion of annual public sector spending.
  • The Guardian: Two-thirds of UK aerospace companies expect to grow by more than 10% over the next year as they stand to gain £150 billion of work from a rising global backlog of aircraft orders.
  • The Guardian: Hundreds of workers at the Milford Haven oil refinery in south-west Wales are awaiting confirmation that their jobs have been saved after weekend reports that a deal to sell the plant was close; the plant's current owner, US-listed Murphy Oil, has agreed to sell the troubled site to the oil entrepreneur Gary Klesch.
  • The Independent: UK banks have plummeted in world rankings since the financial crisis as they react to stricter regulation and demands for more cash on their balance sheets.
  • The Independent: A “citizens’ jury” convened by one of the world’s big four accountancy firms has called for the abolition of inheritance tax but new higher council tax bands on high-value properties.
  • The Daily Telegraph: High demand has kept Jaguar Land Rover on its toes but car giant's roaring success could be slowed by a lack of engineers.
  • The Daily Telegraph: Supermarkets could have just five more years on top, according to data from industry body IGD that lays bare the pressure on the "big four" supermarket chains.
  • The Daily Telegraph: A global analysis of banks has pointed out that independent Scotland would be even more exposed to its banking sector than Iceland was at the height of the financial crisis.
  • The Daily Telegraph: Merger prospectus reveals investment bankers will win lion's share of fees while companies management will receive £3.3 million in basic pay.

Share tips, comment and bids

  • Financial Times: Peter Long, Tui Travel chief executive, said he put aside doubts about merging with the tour operator’s German parent because its partner was becoming a better-run company; he will begin trying to convince Tui Travel shareholders of the value of its proposed nil-premium merger with Tui AG, described by one analyst as “strategically questionable” and “financially motivated”.
  • Financial Times: Edmond de Rothschild has amassed $530 million for its first private equity fund focusing on deals in Africa, in the latest sign of investors’ growing interest in the continent; the fund will be managed by Amethis, a company majority-owned by the Swiss private banking group and founded by Luc Rigouzzo and Laurent Demey, two former top executives at French development financial institution Proparco.
  • Daily Express: Life sciences firm Abzena, which helps drug makers develop better biopharmaceutical products, is coming to Aim.
  • Daily Express: Indian protection tycoon Richie Nanda is planning to float or sell a stake in The Shield Group, one of Britain’s biggest private security firms.
  • Financial Times (Lex): Energy infrastructure: Yielding results.
  • Financial Times (Lex): AMS / Dialog: poison Apple?
  • Financial Times (Lex): Philip Morris: debt addiction

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