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Monday Papers: Citi to pay half bankers’ bonuses in cash

Monday Papers: Citi to pay half bankers’ bonuses in cash

Top stories

  • Financial Times: Citigroup is set to pay most of its investment bankers in Europe at least half of their bonuses in cash this year, underlining how US banks continue to be much more generous than their European rivals.
  • The Daily Telegraph: Deutsche Bank has cleared co-chief Anshu Jain of role in Libor rigging; the Germany's biggest bank came to this conclusion after examining company documents and interviewing hundreds of members of staff.
  • Financial Times: Mario Draghi has signalled that he would be prepared for the European Central Bank to fight deflation in Europe by buying packages of bank loans to households and companies.
  • Financial Times: A US investigation into insider trading has found that investment banking analysts may have felt pressured to give advance views on stocks to US fund giant BlackRock in order to retain its business.
  • The Guardian: The future of Barclays' sponsorship of English football's Premier League has been cast into doubt by reports it will review its £40 million-a-year deal.
  • Daily Mail: US telecoms giant AT&T has tapped up Telecoms Commissioner Neelie Kroes over a possible bid for Vodafone, according to reports from the World Economic Forum in Davos.
  • The Daily Telegraph: The Formula One chief Bernie Ecclestone could face a tax demand for hundreds of millions of pounds as a result of lawsuits against him in the UK and Germany.
  • Financial Times: A resurgence in North Sea spending that saw investment hit a record £14 billion last year has failed to calm fears that the UK risks failing fully to exploit its oil and gas reserves.
  • Financial Times: Tata Motors, India’s largest automotive group by sales, said on Sunday that its managing director Karl Slym had died, following a fall from a building in Bangkok.

Business and economics

  • Financial Times: MBA graduates from the world’s elite business schools have seen their pay soar during the past five years in spite of the global economic downturn, according to data collected for the 2014 FT MBA rankings.
  • Financial Times: Banks are cutting their balance sheets at the slowest pace since the eurozone financial crisis, with the collective size of the region’s balance sheets dropping by €200 billion to €31.5 trillion from August to November last year - the smallest three-month fall since banks began cutting assets in earnest from May 2012.
  • Financial Times: Fund managers are gloomier about emerging markets than for many years after last week’s rout of currencies from Argentina to Russia.
  • Financial Times: The Ben Bernanke era at the US Federal Reserve will end this week and, barring severe market turmoil in the next few days, the final act is very likely to be another $10 billion reduction in the pace of asset purchases to $65 billion a month.
  • The Guardian: European finance ministers meeting in Brussels on Monday are due to express disquiet over the resistance Athens is displaying to adopting reforms, as the Greek government weighs up the cost of a court ruling reversing wage cuts on security forces agreed under the country's bailout.
  • Daily Mail: The number of firms warning of lower than expected profits fell to its lowest level in three years in 2013, giving a further boost to hopes of an economic recovery.
  • The Daily Telegraph: Prudential has held talks with the Treasury to increase the supply of social housing across the UK and is spearheading a near-£300 million project to finance the construction of around new homes.
  • Financial Times: Investment banks are hiring again in Asia, taking on more junior staff as they hope that a wave of new bond and equity raising deals in January signal a turnround ahead after three years of declining activity and fees.
  • The Daily Telegraph: Aberdeen chief Martin Gilbert believes chief executives and other senior directors should be given salaries, with performance bonuses only if appropriate, to align interests with investors.
  • Financial Times: Transportation of wheat and other key commodities across western US and Canada has slowed sharply as a bumper harvest, booming shale oil shipments and severe winter weather have all combined to snarl rail freight movements.
  • The Daily Telegraph: The Governor of the Bank of England has warned senior bankers that dealing with the legacy of past wrongdoing is becoming the most pressing issue for the industry.
  • Financial Times: Energy investor Chris Wheaton recently wrote to Royal Dutch Shell’s new chief executive Ben van Beurden with a few ideas on how to turn the company round; one of them was to show some restraint on capital spending, which soared last year to a record $44 billion.
  • Financial Times: Britain’s biggest health insurer, Bupa, is examining selling lower-cost policies that would cover private treatment only for individual illnesses in its latest effort to reverse a patient exodus.
  • Financial Times: Insurers are aiming to transform the way in which natural disasters are modelled with a groundbreaking system of their own as the industry tries to scale back reliance on outside specialists that critics warn exert undue influence on premiums.
  • The Daily Telegraph: Ofwat is set to tell Britain's biggest water companies they will have to make big reductions to the scale of planned bill rises for customers.
  • Financial Times: Warburg Pincus, the private equity investor, has hired Peter Kukielski, ArcelorMittal’s former mining chief, to accelerate efforts to buy non-core assets from natural resources groups under pressure from subdued commodity prices.

Share tips, comment and bids

  • Financial Times: Alisher Usmanov, Russia’s richest tycoon, who has close ties to the Kremlin, has increased his control over VKontakte after its founder Pavel Durov sold his stake in the country’s leading social network to an ally of Mr Usmanov.
  • The Guardian (Comment): David Cameron's story about how shale gas will save the British economy is demonstrably and devastatingly false
  • The Guardian (Editorial): For the first time in a quarter of a century, Labour's manifesto will not be able to contain a line saying 'no rise in income tax rates'
  • The Daily Telegraph (Comment): The jobs-rich future we seek cannot be won by monetary policy alone; a hard road of profound structural change lies ahead.
  • The Daily Telegraph (Comment): The big danger that many people fear is that economic recovery will cause inflation to rise - after all, that is supposed to be the normal relationship.
  • Financial Times (Lex): US public pensions: lower discount rates will be painful, but necessary.
  • Financial Times (Lex): Nintendo: it may be too soon to pull the plug on hardware sales.
  • Financial Times (Lex): FICC: banks are divided on response to plunge in sector’s income.

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Profile: Kevin Doran's formula for success at AJ Bell

Profile: Kevin Doran's formula for success at AJ Bell

From a degree in theoretical physics to teaching and becoming one of the youngest chief investment officers in the UK, Kevin Doran has certainly had an interesting career.

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