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Monday Papers: Forward guidance could ‘encourage risk’

Monday Papers: Forward guidance could ‘encourage risk’

Top stories

  • Financial Times: Efforts by central banks to spur economic recovery by providing guidance on what will happen to interest rates could endanger the global financial system, economists at the Bank for International Settlements have warned.
  • Financial Times: Five of Europe’s largest lenders - Barclays, Deutsche Bank, UBS, Royal Bank of Scotland and HSBC - face up to another €10 billion in litigation costs in the next two years due to alleged foreign exchange manipulation and other legal issues.
  • The Guardian: The UK economy will exceed its pre-recession peak this summer, according to the latest predictions from British businesses; the British Chambers of Commerce now expects GDP to grow 2.8% this year, compared with its forecast of 2.7%; but that is still below the Bank of England's growth forecast of 3.4% this year.
  • The Independent: Co-operative Group is facing a fierce backlash after it emerged that the troubled banking-to-supermarkets organisation is set to hike its new chief executive’s pay package to £3.66 million.
  • The Independent: The last surviving grandson of car pioneer Henry Ford, the founder of the Ford Motor Company, has died; William Clay Ford Senior had been a director at the company for nearly 60 years; he died of pneumonia at his home in Detroit, aged 88.
  • Financial Times: Seth Klarman, one of the world’s most respected investors, has raised the alarm over a looming asset price bubble, calling out “nosebleed valuations” in technology shares like Netflix and Tesla Motors and warning of the potential for a brutal correction across financial markets.

Business and economics

  • Daily Mail: Larry Fink, the founder of BlackRock, has said that he will not put money into Russia unless the country follows international law.
  • Financial Times: Thomson Reuters has won UK regulatory approval for a new subsidiary responsible for oversight of the data company’s role in compiling financial benchmarks, such as the scandal-hit Libor.
  • Daily Mail: Security firm G4S will this week strive to convince the UK government it should be allowed to bid for fresh work; the FTSE 100 group has been banned from applying for taxpayer-funded contracts after being beset by a series of scandals.
  • Financial Times: Benjamin Lawsky, New York’s aggressive banking regulator who is campaigning to clean up Wall Street, is turning his sights on the individuals as well as the institutions who squeeze struggling homeowners or help banks violate US sanctions.
  • The Guardian: A total of 36% of companies would consider moving outside Scotland in the event of independence, while 40% would not, according to a Survation poll of 100 Scottish businesses for the Scottish Mail on Sunday.
  • Daily Mail: Supermarket chain Morrisons will this week embark on an aggressive price war as it battles to fend off discount rivals such as Aldi and Lidl.
  • Financial Times: Standard Life, the financial services group whose fund management arm is critical of boardroom excesses, is to shake up its own executive pay following concerns from leading shareholders.
  • The Guardian: Wm Morrison, Britain's fourth-biggest supermarket, is expected to report its lowest annual profit in five years on Thursday and could also detail plans to sell about 10% of its freehold property and return cash to shareholders.
  • Daily Mail: Barclays yesterday revealed details of a new ‘flexible’ cash Isa which will be available to savers from Monday morning; the deal comes with a 1.8% rate fixed over three years.
  • The Guardian: European Union governments and parliamentarians will try to reach a compromise this week on how to wind down failing banks.
  • The Guardian: Members of parliament will grill the Bank of England governor, Mark Carney, on Tuesday about his plans to modernise governance at the central bank in light of the escalating foreign exchange scandal.
  • The Guardian: Thousands of BT engineers, call centre workers and other frontline staff are to share a £1.3 billion windfall when a five-year employee share scheme vests this summer, with many receiving "life-changing" amounts.
  • The Daily Telegraph: Amazon to develop its own computer games; the retail giant uses Double Helix acquisition to spearhead major assault on console market.
  • Financial Times: UK advertising spending on mobile devices will overtake spending on newspapers this year for the first time, according to a report.
  • Financial Times: Spotify has secured a $200 million credit facility from lenders including Morgan Stanley, bringing the Swedish music company a step closer to a potential initial public offering in the US, sources said.
  • Financial Times: Google will soon launch its attempt to dominate a new generation of wearable technology using its Android software.

Share tips, comment and bids

  • Financial Times: A looming shake-up of France’s highly competitive mobile market has taken a new twist with a €1.8 billion deal by Bouygues to sell its network to upstart rival Iliad if its bid to buy SFR from Vivendi succeeds and creates the country’s largest operator.
  • Daily Mail: Photobox, which sells personalised items such as cards and mugs online, is planning to list before the summer with a value of between £400 million and £500 million.
  • The Independent (Small Talk): Tekcapital - the Oxford-based company, formed just a year ago - will today announce its intention to list on the Alternative Investment Market with a £3 million fundraising that will value the company at £6 million.
  • Financial Times: Tech billionaire Teddy Sagi, founder of listed gambling software group Playtech, is bringing another of his companies to market with an intention to float payment provider SafeCharge.
  • Financial Times: Abertis, the world’s largest toll road operator, is looking to sell its 75% stake in Montego Bay airport, Jamaica, and the 5% stake it holds indirectly in Mexico’s Grupo Aeroportuario del Pacífico.
  • Financial Times: Goldman Sachs and a coterie of investors including Singapore's sovereign wealth fund are eyeing a multibillion pound stock market launch of the corporate pensions insurer Rothesay Life, sources said.
  • The Independent: A growing number of companies from outside the advertising industry are looking to snap up ad agencies amid a takeover frenzy because of the digital boom, according to the corporate finance firm Clarity.
  • The Daily Telegraph: ECI Partners underpins £57 million Avantia buy-out; the insurer specialises in high risk properties such as those prone to flooding.
  • Financial Times: McLaren boss Ron Dennis has instructed Morgan Stanley to search for new investors as he plots to revive the Formula One team’s ailing fortunes and expand its technology division.
  • The Independent (The Week Ahead): Investors hoping for dividend as Foxtons prepares maiden results; expect bad news from G4S on Wednesday; JD Wetherspoon will announce its first-half numbers on Friday.
  • The Guardian (Editorial): It is extraordinary that the only pre-budget debate is about how to reduce the fairest source of state revenues.
  • Financial Times (Lex): Big Lots: after Friday’s rally, Big Lots’ shares trade at 15 times forward earnings, reflecting enthusiasm about its turnround – but that will take some time.
  • Financial Times (Lex): Resource risk: it is likely that, as with oil, political risk has slowed the exploitation of copper deposits in regions where they have been plentiful.
  • Financial Times (Lex): Japan Display: the JDI listing may prove to be more important for what it says about Japan’s ability to reinvigorate zombie businesses than for its size.

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Profile: The opportunity set that attracted Brett Williams to wealth management

Profile: The opportunity set that attracted Brett Williams to wealth management

Brett Williams is best known for helping to build some of the biggest platforms in the IFA market.He made the move over to wealth management to head SEI’s UK business earlier this year in the belief that this is where the best opportunities now lie.

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