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Monday Papers: HSBC braced for fresh wave of PPI costs

Monday Papers: HSBC braced for fresh wave of PPI costs

Top stories

  • Financial Times: HSBC is set to become the latest bank to take a fresh charge for mis-sold payment protection insurance as Britain’s largest lenders set aside billions of pounds for past misconduct.
  • Financial Times: Investment banks are for the first time making more money helping private Chinese companies list on the public markets, than from the country’s vast number of state-owned enterprises.
  • The Guardian: Ineos, the privately controlled chemicals group, is giving the strongest signal yet of its intention to move into the controversial area of fracking.
  • The Daily Telegraph: One of the UK’s most influential businessmen, Lord Bamford, chairman of JCB, has hit out at European Union and US sanctions against Russia, claiming that they are ill-conceived and may result in the loss of British jobs.
  • Financial Times: Banco Espírito Santo has been split into “good” and “bad” banks as part of a €4.9 billion rescue of the distressed Portuguese lender that protects taxpayers and senior creditors but leaves shareholders and junior bondholders holding only toxic assets.
  • Financial Times: For the first time in three years, Europe’s companies are delivering earnings growth; but the good news risks being overshadowed by worsening relations between Russia and the west.
  • Financial Times: Quindell, the UK IT outsourcing services provider, has run into trouble over one of its biggest contracts, a joint venture with the RAC to put tracking devices in cars which was aimed at revolutionising the insurance industry.
  • Financial Times: A split has emerged between airlines about whether it is safe to fly over war-torn Iraq, after Malaysia Airlines flight MH17 was downed in Ukraine.
  • The Guardian: Economists are expecting the first official pressure for a rise in UK interest rates to emerge this week, when the Bank of England's monetary policy committee (MPC) meets.

Business and economics

  • Financial Times: Britain’s banks have stepped up opposition to the creation of an EU financial services chief, saying the move could fracture the single market and “harm the UK’s national interests”.
  • Financial Times: A London court that settles complex commercial disputes saw a rise in the number of cases last year that surpassed the volume it was handling at the peak of the financial crisis in 2009.
  • Financial Times: City hiring remained flat last month but strong recruitment by small and medium-sized companies helped to offset a slowdown at investment banks, a recruiter has reported.
  • Financial Times: UK business confidence has dipped for the first time in two years, reinforcing expectations of a modest slowdown in economic growth later this year, a survey has found.
  • Financial Times: Ghana, the country that epitomised the ‘Africa rising’ narrative of strong economic growth and improved governance, is to seek help from the International Monetary Fund; the west African nation will turn to the fund for financial assistance after its currency plunged roughly 40% this year against the US dollar.
  • Financial Times: France has gathered support to challenge US regulators imposing heavy penalties on foreign banks at a G20 meeting of world leaders later this year after the record $8.9 billion fine levied on BNP Paribas last month.
  • Financial Times: Barclays, the UK lender that announced a downsizing of its investment bank earlier this year, has emerged as one of the big winners in the deal fever gripping the US, overtaking many of its Wall Street peers at a time when competition for M&A fees is rife; the bank sits third in M&A fee list so far this year, according to data from Dealogic, putting it ahead of many US dealmaking rivals, and only slightly behind Goldman Sachs and JPMorgan.
  • Financial Times: Australia is planning its most radical shake-up of media ownership laws in two decades in a move that could lead to billions of dollars of mergers and reshape an industry in financial distress.
  • Financial Times: As the Espírito Santo dynasty in Portugal struggles to save its business empire from collapse following the discovery of accounting irregularities, many have questioned the wisdom of allowing systematically important banks to be controlled by families.
  • Financial Times: Paul Parker, a former head of mergers and acquisitions at Barclays, has joined Goldman Sachs as a co-chairman of its mergers group.
  • Financial Times: Storelli, is launching a fundraising drive in London, partly through crowdsourcing, to grow a business at a time when debate is growing on how to prevent sports head injuries.
  • Financial Times: The founder of the Keydata, the collapsed investment company, is threatening to sue the UK’s financial regulator for £371 million, alleging it abused its power during an investigation that led to the group entering administration.
  • Financial Times: Betfair returned £80 million to investors in violation of accounting rules, the gambling company has admitted.
  • Financial Times: Water shortages in California are having an unexpected impact on middle-class breakfast tables by pushing up the price of almond croissants; the US state accounts for 80% of global almond supplies and the worst drought in decades has led to worries about future production and sent prices soaring.
  • Financial Times: Internet-connected cameras, USB sticks and even a web browser promising anonymity have serious security flaws, according to researchers preparing to lay bare the dangers of online life at conferences in Las Vegas this week.
  • Financial Times: A legal dispute between TD Ameritrade and a small trading software company has emerged as a potential test case in determining how large financial institutions might be allowed to interpret a controversial amendment to US patent law.
  • Financial Times: Aviva is drawing up plans to reduce its annual tax bill by tens of millions of pounds after the insurance group paid almost a third more than its four biggest FTSE 100 rivals in the past five years.
  • Daily Mail: Chancellor George Osborne has been urged to intervene over a secret report by the European Investment Bank into the tax affairs of FTSE 100-listed commodities giant Glencore; the EIB is refusing to publish the findings about Glencore’s Zambian subsidiary Mopani, despite taking more than two years to compile a report.
  • Daily Mail: HSBC and Standard Chartered face pressure from investors this week as they reveal lacklustre results; global bank HSBC is expected to reveal an 11.5% fall in profits to £12.5 billion in the first half of the year and Standard Chartered is also under pressure for chief executive Peter Sands to restore performance.
  • Daily Express: Lloyds has slashed the amount it will lend to homebuyers through the Help to Buy Scheme by 70 per cent in a move that could drastically cut the options available to first-time buyers.
  • The Guardian: Despite sinking to a £2.5 billion loss and being hit by a scandal inside its bank, the Co-operative Group has been voted the most ethical company over 25 years.
  • The Guardian: Growth in China's services sector slipped to a six-month low in July as new orders rose at their weakest rate in at least a year, data indicated, taking some of the shine off an industry that has been a bright spot in the Chinese economy this year.
  • The Daily Telegraph: Aeroflot has halted low-cost flights amid new EU sanctions; Russian airline's regional arm was targeted when the list of measures was expanded.
  • The Daily Telegraph: Tesco, Asda, J Sainsbury and Wm Morrison have put brakes on expansion as they battle slowing sales.
  • The Daily Telegraph: The chairman of one of Britain’s biggest banks has urged the Government to delay plans to formally separate the retail and investment banking arms of lenders.

Share tips, comment and bids

  • Financial Times: After closing a deal to buy Swiss private bank BSI for $1.7 billion three weeks ago, BTG’s billionaire controller André Esteves is now considering a deal in Mexico, to give his bank a greater presence in a major market for the region.
  • Financial Times: Hugh Osmond, the entrepreneur who floated PizzaExpress two decades ago, is considering a bid for ailing Italian restaurant chain Strada.
  • Financial Times: Mid Europa Partners, the largest private equity group in central and eastern Europe, has raised €810 million for its fourth fund – half the amount it raised before the financial crisis – as investors take a cautious view on the region amid mounting tensions between Russia and the west.
  • Financial Times: Private equity groups are exploring a $10 billion plan to buy hundreds of older drug brands from GlaxoSmithKline and Sanofi and merge them, highlighting the continued intense deal activity sweeping the pharmaceuticals sector.
  • Daily Mail: Fashion footwear chain Office is considering a £300 million listing on the stock exchange.
  • Daily Express: OptiBiotix Health will join the market following a reverse takeover by Aim-listed investor group Ducat Ventures; it will raise £3.3 million with an expected market value of £5.7 million and is being advised by Cairn Financial Advisers.
  • The Independent: Handbag designer Anya Hindmarch has sold off a larger chunk in her business to Qatari investors.
  • Financial Times (Lex): Cheung Kong: reach for the sky.
  • Financial Times (Lex): US tech in China: pawns of villains?
  • Financial Times (Lex): Procter & Gamble: basket case.

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