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Monday Papers: JP Morgan in $200m trial over CDO deal

Monday Papers: JP Morgan in $200m trial over CDO deal

Top stories

  • Financial Times: The UK Treasury will on Monday assume full responsibility for Britain’s £1.2 trillion debt stock in the event of Scottish independence, in an attempt to head off market jitters ahead of September’s referendum.
  • Financial Times: JP Morgan and BVG, the Berlin transport authority, are set to begin a $200million High Court trial over a complex credit default swap arrangement signed before the 2008 financial crisis.
  • Financial Times: BlackRock has thrown its full support behind Nigel Bolton, head of European equities at the fund management giant, after Italian regulators began legal proceedings against him alleging insider trading.
  • Financial Times: France’s Total will become the first oil major to invest in Britain’s fledgling shale sector when it announces plans on Monday to spend about $50 million on gas exploration in the East Midlands.
  • The Guardian: Argentina will seek legal punishment, including prison sentences, for anyone who drills for oil in the Falklands and the surrounding waters it claims as its territories, the country's newly created Malvinas secretary Daniel Filmus has told the Guardian.
  • Financial Times: Forbes Media has narrowed to six the potential buyers for its eponymous business magazine in an auction that could fetch it as much as $475 million.
  • The Guardian: Morrisons is reported to be considering selling off up to 10% of its properties to appease shareholders after bad tidings over Christmas trading.
  • Daily Mail: Miller Group, the UK’s biggest privately-owned housebuilder, is mulling a break-up of its business ahead of a possible stock market float.
  • Financial Times: Vodafone was by far the single biggest contributor to the rise in the FTSE 100 last year, accounting for more than 2.6 percentage points of the 14.4% rise in the UK blue-chip index last year.
  • The Independent: Britain's largest car manufacturer Jaguar Land Rover has reported record breaking global sales for 2013; together the iconic British brands sold 425,006 vehicles in 2013 - up 19% on 2012.
  • Financial Times: Weltbild, one of Germany’s largest publishers, opened insolvency proceedings at a court in Augsburg on Friday, putting more than 6,000 jobs at risk.

Business and economics

  • Financial Times: Banks are becoming increasingly dependent on surging equity markets, generating nearly half of total investment banking revenues from equity trading and underwriting in the fourth quarter.
  • Financial Times: Global regulators have watered down controversial new rules aimed at reining in banks’ reliance on debt, following ferocious industry lobbying.
  • Financial Times: Central bankers and supervisors on Sunday approved an international standard for the leverage ratio – a measure of financial strength that is considered less susceptible to being gamed by bankers – that offers some concessions to banks.
  • The Independent: Chancellor George Osborne should prioritise investment in Britain’s thriving creative industries, such as the arts and advertising, according to a new report from think tank IPPR.
  • Daily Mail: Dodgy building firms are costing consumers £500 million by overcharging water companies for repairs, a construction audit firm has claimed.
  • Financial Times: Democratic and Republican lawmakers are coming to the aid of small US community banks that have complained about a provision in the Volcker rule that they claim will force them to record losses.
  • The Daily Telegraph: Huawei has been forced to defend the security of its video conferencing technology in response to reports that Government departments believed its technology could be bugged.
  • Financial Times: Google was awarded nearly 2,000 patents in the US last year, almost double the number of all previous years combined, catapulting it into the top ranks of technology companies building stockpiles of legally-protected innovations.
  • The Daily Telegraph: Sainsbury's is to operate more convenience stores than supermarkets as consumer habits change.
  • The Daily Telegraph: CompactGTL, which appointed Tony Hayward as chief executive last year, seeks to lower debts ahead of a change of control.
  • Daily Mail: Luxury goods group Burberry will be the latest retail firm to reveal Christmas trading figures when it reports on Wednesday.
  • Financial Times: World production of steel will rise by 3.6 per cent in 2014, with growth finally returning to Europe after bottoming out last year, according to a Financial Times poll of 15 steel analysts.
  • Financial Times: Dozens of the peer-to-peer lending websites that sprang up in recent years in China have shut as borrowers default on loans.
  • Financial Times: Indonesia has implemented a hotly contested ban on the export of unprocessed minerals after agreeing last minute carve-outs that are expected to grant a temporary reprieve to the country’s biggest foreign miners, Freeport McMoRan and Newmont.
  • Financial Times: As sales of smartphones begin to slow, US mobile operators, chipmakers and software developers are targeting the auto industry and “connected cars” as one of the next big growth opportunities.

Share tips, comment and bids

  • Financial Times: Cargill, the US-based agriculture trading group, has doled out $200 million for a stake in UkrLandFarming, Ukraine’s largest agribusiness holding, in a potentially far-reaching deal that sources said would see both groups partner up in future grain exports to China and other growing markets.
  • Daily Mail: Alec Gores, who heads US private equity firm Gores, is reported to be in talks with Premier Foods as the London-listed food business struggles to overcome a combined debt mountain and pension deficit of around £1.3 billion.
  • Financial Times: Moelis & Company, the independent US investment bank, is working with Goldman Sachs on a potential initial public offering.
  • Financial Times (Comment): Companies are plainly gearing up to take more risk and spend more, even if the extent is unclear, and that this can only be good news for the economy.
  • The Guardian (Comment): Having adult children living at home is a huge burden. The pension triple lock is hardly compensation for the collateral damage of the youth crisis
  • The Guardian (Comment): Britain's energy markets were a mess in 2010. And Labour's populist plans just aren't tough enough to challenge the big six it created.
  • The Daily Telegraph (Comment): In rapidly developing countries, often the proceeds of economic growth fail to flow adequately to shareholders - particularly foreign ones.
  • Financial Times (Lex): Oil refiners: Crude export ban should be lifted along with other measures of energy protectionism
  • Financial Times (Lex): Fiat has taken control of Chrysler but there are two reasons for wariness
  • Financial Times (Lex): Banks see return on risk-weighted assets as a good way to measure their performance

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