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Monday Papers: Deutsche Bank hit by debt market slowdown

Monday Papers: Deutsche Bank hit by debt market slowdown

Top stories

  • Financial Times: Deutsche Bank announced a net loss of €965 million for the last three months of the year as it rushed out its full-year numbers 10 days earlier than expected.
  • Financial Times: UBS has struck two deals to outsource most of its fixed income trading platform in a radical step highlighting the scale of cost pressures in the investment banking sector.
  • Financial Times: Dropbox has positioned itself as the most valuable of the latest crop of Silicon Valley companies raising what are likely to be their last new funds before they go public, with a deal that prices the cloud storage provider at $10 billion.
  • The Daily Telegraph: The Telegraph can reveal that Paul Coyle, Morrisons’ group treasurer and head of tax, was arrested in December after an insider trading investigation by the FCA.
  • Daily Mail: Labour's threats to meddle in the energy market have taken a £7 billion toll on Britain’s energy companies, the Daily Mail can reveal.
  • Financial Times: CVC Capital Partners, the European private equity house that owns Formula One, has an estimated $20 billion of “dry powder”-- the biggest pile of cash to spend on leveraged buyouts--topping US rivals Apollo Global Management and Carlyle Group, as the industry prepares for an acceleration of deals this year.
  • Financial Times: Deutsche Bank is putting its role as a gold and silver benchmark price fixer in London up for sale, opening up an opportunity for a new bank to join the elite club of price setters in one of the world’s largest precious metals trading hubs.
  • The Daily Telegraph: Lockheed Martin's F-35 project should be worth £1 billion a year to UK industry, sustaining 25,000 jobs, when production peaks early next decade.
  • The Guardian: Insurance group Legal & General wants to build five new towns across Britain over the next 10 years at a cost of up to £5 billion, according to its chief executive.

Business and economics

  • The Daily Telegraph: RBS has been shrunk so dramatically since its taxpayer-funded bail-out that the bank estimates a possible shortfall of £7 billion-£10 billion upon reprivatisation.
  • The Daily Telegraph: The next Lloyds share sale could come as early as mid-February, making Ed Miliband’s plans to split up the major banks on market share grounds difficult.
  • Financial Times: Foreign investors shrugged off the growing gloom over emerging markets last year, according to comprehensive data which suggest the impact of US Federal Reserve plans to “taper” its asset purchases, was less dramatic than initially indicated.
  • The Guardian: Silicon Valley has launched a last-ditch attempt to derail plans devised by the G20 group of countries to close down international loopholes that are exploited by the likes of Google, Amazon and Apple to pay less tax in the UK and elsewhere.
  • Financial Times: The UK Treasury has given extra funding to the Serious Fraud Office to bolster its criminal investigation into alleged bribery by Rolls-Royce in Indonesia and China.
  • The Daily Telegraph: Chairman of newly-privatised postal service Royal Mail says Moya Greene, on an annual salary of £1.2 million is “lowest paid chief executive in the FTSE100”.
  • The Independent: The physically disabled, the unemployable, and even former prisoners should build the £42.6 billion High Speed 2 railway, according to High Speed Rail Industry Leaders Group, a powerful new industry lobbying group.
  • The Guardian: Drug and insurance companies will from later this year be able to buy information on patients – including mental health conditions and diseases such as cancer, as well as smoking and drinking habits – once a single English database of medical data has been created.
  • Financial Times: Shares in Nintendo are expected to be hit on Monday, after it announced late on Friday that it had cut its net profit forecast of Y55 billion ($527 million) in the year to March to a net loss of Y25 billion, as sales of its Wii U games console and the 3DS handheld unit fell well short of global targets.
  • The Daily Telegraph: Metro bank raises £387.5 million from private investors and institutions to fund further expansion as it postpones IPO plans.
  • Financial Times: The shine is coming off southeast Asia – the golden child of banking after the global financial crisis – as valuations tumble and competition for funding heats up across the region.
  • Financial Times: An $88 million investment in Delivery Hero, a Berlin start-up, is poised to fire up a global contest for control of the internet takeaway business.

Share tips, comment and bids

  • Daily Mail: Supermarket giant Tesco is rumoured to be considering an out-of-the-blue bid for Mothercare as it tries revive shoppers’ interest in visiting its hypermarkets.
  • Financial Times: US private equity group Warburg Pincus has purchased a majority stake in Source, a European Exchange Traded Funds provider, from a group of banks including Bank of America Merrill Lynch and Goldman Sachs.
  • Daily Mail: Blackstone and PAI Partners, the private equity owners of the firm behind Jaffa Cakes and McVities Digestives, have begun preparations for a public listing later this year.
  • The Guardian (Comment): The tougher the planning controls, the higher the house prices. We must ease restrictions in our cities and in the countryside.
  • The Guardian (Comment): The growing gap between rich and poor precipitated the last crash. Ominously, the same forces are abroad again.
  • The Daily Telegraph (Comment): Far from imposing a leverage ratio of 5%, 10% or even 15%, the Basel committee continues to propose a leverage ratio of just 3% - only slightly above that displayed by the UK banking industry just before the last collapse.
  • The Daily Telegraph (Comment): Shell’s new chief Ben van Beurden is under pressure for cash return after major profits alert.
  • Financial Times (Lex): Auto parts: Carmakers are seeing a recovery – but suppliers may benefit more.
  • Financial Times (Lex): Nu Skin: Opacity of China’s rules means investors should show vigilance
  • Financial Times (Lex): Turkish Airlines: Shares take off as Middle East and Gulf carriers capitalise on global crossroads

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