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Monday Papers: Fed blow to banks over ‘living wills’

Monday Papers: Fed blow to banks over ‘living wills’

Top stories

  • Financial Times: Global banks can no longer assume continuing access to the Federal Reserve’s discount lending window as an element of their living wills, people familiar with the process have warned.
  • The Guardian: The governor of the Bank of England has warned interest rates might start to rise before workers see a sustained real-terms pick up in their pay; signalling further pain for households, Mark Carney said it was possible that borrowing costs – on hold at 0.5% for more than five years – would increase before wage growth catches up with inflation.
  • The Daily Telegraph: World's biggest companies have amassed $7 trillion of cash while private equity has the highest amount of 'dry powder' on record.
  • Financial Times: Most Europeans think their societies are far less equal than they are, while Americans are unusual in believing that their country is somewhat more equal than it really is.
  • Financial Times: The publication of a UK government report into the Muslim Brotherhood has been delayed as ministers and officials wrangle over its findings.
  • Financial Times: Prudential is to spend about £100 million developing further initiatives in the UK as the country’s biggest life assurer grapples with a fall in annuity sales following George Osborne’s overhaul of the pensions system.
  • Financial Times: Shareholders in two of the world’s largest mining companies, BHP Billiton and Glencore, could hear this week when surplus capital will be returned to them, in what would mark a milestone in the sector’s recovery from a period of ill-judged spending and poor returns.
  • Financial Times: US asset managers Blackstone and TPG are close to buying the UK subprime mortgage lender Kensington from its owner Investec, the Anglo-South African financial services group, in an indication of international investor interest in the British market.
  • The Guardian: Six months after the confrontation over Ukraine first blew up, the damage is starting to be counted in dollars, euros and roubles.
  • The Daily Telegraph: Balfour Beatty's board has so far resisted Carillion's approaches but appealing to investors directly could unlock the deal.

Business and economics

  • Financial Times: Wall Street banks are drawing up preliminary plans to move some London-based activities to Ireland to address concerns that the UK is drifting apart from the EU.
  • Financial Times: Manufacturers have called for the creation of an independent authority to address Britain’s “most pressing” infrastructure challenges, putting an end to the political hurdles that delay the building of projects.
  • Financial Times: High street lender Barclays is the latest to tighten its mortgage affordability criteria, following new measures from the Bank of England designed to prevent a return to irresponsible lending.
  • Financial Times: China’s two biggest internet companies have called a truce after spending billions of yuan in the past six months to grab market share in the nascent taxi hailing app market.
  • Financial Times: Singapore’s two investment funds, GIC and Temasek, have emerged as the biggest state-backed investors in technology, telecoms and ecommerce in the past 12 months, ploughing a combined $3 billion into the sectors.
  • Financial Times: Brazil’s BM&FBovespa is set to launch its new clearing house today in a move that will inject R$20 billion ($8.8 billion) into the country’s markets and open up a new line of business for the exchange operator.
  • Financial Times: Faced with a stagnating economy eurozone banks are expected to borrow about €250 billion in cheap four-year money from the European Central Bank in September and December, according to projections by Morgan Stanley, under the ECB’s ‘targeted long-term financing operations’.
  • Financial Times: Chief executives of the UK’s largest quoted companies are increasingly looking to receive cash instead of payments into their corporate pensions, as set out in research from Incomes Data Services.
  • Financial Times: China’s state-owned airlines have had a turbulent year and are warning of first-half earnings to match when they report later this month.
  • Financial Times: Continental European companies shrugged off a weakening economy to pay record dividends to investors globally in the three months to the end of June, with the increase owing more to improved corporate performances than US dollar weakness.
  • Financial Times: The British executive who masterminded the worldwide expansion of Asos has joined the board of one of Europe’s leading online payments start-ups, as the fledgling group develops its global ambitions.
  • Financial Times: The chief executive of Lanxess has warned that the German speciality chemical company risks becoming a takeover target unless it quickly achieves a turnround in profitability.
  • Financial Times: The Canada Pension Plan Investment Board, one of the world’s largest pension groups with assets of $229 billion, plans to ramp up its activities in India, joining a rising tide of interest from long-term investors in Asia's third-largest economy.
  • Financial Times: Transparency would be a key concern if a future Labour government allowed a state operator to compete with private train companies for rail franchises, said David Brown, chief executive of the UK bus and rail operator Go-Ahead.
  • Financial Times: Nearly twice as many FTSE 350 businesses are expected to tender auditor mandates this year compared with last year, in response to new regulation aimed at shaking up the often cosy relationships between corporate clients and their auditors.
  • Financial Times: Up to 1,000 jobs will be cut at Monarch as the UK travel group attempts an overhaul that will reposition it as a low-cost airline competing with easyJet and Ryanair.
  • Financial Times: Banks have stepped up their hiring of anti-money laundering specialists, increasing both the number of jobs and also pay in the wake of scandals and heavy fines for poor controls.
  • Financial Times: Volvo Cars will next week unveil its first new model under Chinese ownership, a make-or-break model for the Swedish carmaker in its bid to almost double its sales by the end of the decade.
  • Daily Mail: Dr Martens, the British footwear brand beloved of punks and wild child pop stars, is shaking-up its boardroom with the appointment of a new chief executive and finance director, while the current boss becomes chairman.
  • Daily Mail: House prices have fallen for the second month in a row – increasing evidence of a downturn in the property market.
  • Daily Express: A medical technology firm, Medaphor, that helps doctors replace stethoscopes with iPhone-sized scanners is coming to Aim.
  • Daily Express: A price war between supermarkets combined with lower gas and electricity bills had lifted people’s spending power, said Lloyds Bank; its Spending Power Report showed spending on essentials fell by 0.5% against a year earlier as the costs of food, drink prices and utilities dropped, leaving people with money left over after paying their bills.
  • Daily Express: Online estate agents Purplebricks, which is taking on high-street chains by offering a ­flat-fee service, has secured £7million of backing from top City investor Neil Woodford.
  • The Guardian: A third of young people would be happy for their employer to have access to their social media profiles in return for job security, according to a report that claims such personal data monitoring will become more commonplace.
  • The Guardian: A Sainsbury's branch removed kosher food from its shelves over fears that anti-Israeli protesters would attack it.
  • The Independent: Rising costs are putting recovery at risk as the building industry comes up against severe skills shortages and soaring material prices, the industry warns today.
  • The Independent: The pay gap between bosses of Britain’s biggest companies and their average employee has tripled over the past 15 years; the average FTSE 100 chief executive in 2013 received total remuneration worth 143 times that of the average employee in their firms.
  • The Independent: The consumer association Which? is planning a £20 million push to expand its commercial activities, which could make up a third of its profits in the next five years.
  • The Daily Telegraph: Morrisons is going after 'dusk and dawn' shoppers as the Yorkshire-based grocer launches latest bid to reverse dramatic fall in sales.
  • The Daily Telegraph: After waiting for several years, there are signs that the outlook seems predictable enough for businesses to hire, invest and make strategic purchases.

Share tips, comment and bids

  • Financial Times: Roche is set to offer $10 billion to take full control of Japan’s Chugai Pharmaceuticals as the Swiss drugmaker looks to expand its presence in Asia.
  • Daily Mail: Poultry giant Moy Park is eyeing a £1 billion flotation on the London Stock Exchange; the company, which is part of Brazil’s Marfrig food group, supplies chickens and turkeys to retailers including Tesco and Waitrose.
  • Financial Times (Lex): Energy drinks: doing the Monster mash.
  • Financial Times (Lex): Brazilian telecoms: crowded line.
  • Financial Times (Lex): UK insurance: hard driving.

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