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Saturday Papers: IMF sounds alarm on UK house prices

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Saturday Papers: IMF sounds alarm on UK house prices

Top stories

  • The Guardian: The International Monetary Fund has warned that a housing bubble could derail the UK's economic recovery, as it urged the government to consider reining in the Help to Buy scheme and called on the Bank of England to clamp down on risky mortgages.
  • Financial Times: The number of Americans in work has surpassed the pre-recession peak, recording four straight months of growth above 200,000 for the first time in 14 years, as the world’s largest economy bounces back.
  • Financial Times: Vodafone has revealed the extent to which governments around the world have ordered the British telecoms group to open up its networks for surveillance.
  • Financial Times: Uber, the taxi app intent on conquering the world, has raised $1.2 billion in capital to value the four-year-old San Francisco-based company at $18.2 billion, an increase of about $8 billion in just weeks.
  • The Independent: The AA is set to join the London Stock Exchange for the first time in its 109-year history later this month in a move that will value the roadside assistance group at £1.39 billion.
  • The Independent: Bank of America may have to pay out more than $12 billion for mis-selling mortgage-backed securities in the run-up to the financial crisis.
  • The Daily Telegraph: Private bank Coutts & Co has admitted it may have exposed thousands of UK customers to unsuitable investments over a period of up to 70 years.

Business and economics

  • Financial Times: Homebuyers are “severely” underprepared for interest rate rises, underestimating their ability to repay their mortgage by more than £500 a month if rates increase even modestly, research has found.
  • Financial Times: Mexico’s central bank has done it again – catching the market completely on the hop by cutting its benchmark interest rate by half a point to a record low of 3% to try to shore up a flagging economy.
  • Financial Times: The European Central Bank’s decision to cut rates below zero was the headline-grabber of the package of exceptional measures un­veiled on Thursday to rid the eurozone of the threat of deflation.
  • Financial Times: Standard & Poor’s has lost its appeal against a landmark court ruling in Australia, which found the credit rating agency misled investors by giving AAA ratings to toxic financial products that lost almost all their value.
  • Financial Times: The UK’s financial watchdog is seeking to fine a former Deutsche Bank trader in interest rate derivatives for allegedly trying to manipulate a benchmark interest rate.
  • Financial Times: Despite being ranked one of the world’s “sexiest” brands in 2014 by BrandZ, Prada could not escape the slowdown hitting the global luxury sector.
  • Financial Times: Shares in Hertz tumbled 9% on Friday after the US car rental business warned it might have to restate the last three years’ financial results and it was undertaking a review of its financial reporting.
  • Financial Times: Britain’s “beer renaissance” helped London brewer and pub group Fuller, Smith & Turner post record results as its beer division bounced back after a tricky 2013.
  • Financial Times: Bibby Line, the 200-year-old family business behind the Costcutter chain of stores, is planning to reinvest some of its record annual profits in a bid become Britain’s largest convenience retailer.
  • Financial Times: The Securities and Exchange Commission has taken action against an operator of a “dark pool” trading venue and a broker-dealer for violating different rules relating to market structure - a day after the agency’s chairman outlined ambitious plans to shore up investor confidence in the market.
  • Financial Times: The chairman of mergers and acquisitions at Barclays has resigned, adding to the mounting list of senior employees who have left the investment bank after it announced a sweeping restructuring of the underperforming division.
  • Financial Times: International expansion remains the “number one goal” for UPS, its incoming chief executive said on Friday as the express parcel service said his predecessor would become non-executive chairman.
  • Daily Mail: Anglo American boss Mark Cutifani issued a rallying cry to the mining industry not to back down in the face of bitter labour disputes in South Africa.
  • Daily Mail: The boss of Royal Mail saw her pay fall by more than £600,000 after handing back a controversial housing allowance.
  • Daily Mail: Troubled investing platform Seltrade will transfer its 130,000 customer accounts and assets to Equiniti by the end of the year.
  • The Guardian: The American lawyer who orchestrated a successful class action suit against the tobacco industry 20 years ago has turned his sights on the stock exchanges caught up in the controversy over high-frequency trading.
  • The Guardian: Ross McEwan, chief executive of Royal Bank of Scotland, received shares on Friday worth almost £1.5 million in the bailed-out bank.
  • The Guardian: John Lewis has seen a boom in television sales as Britons prepare to watch the World Cup, starting on 12 June; sales of televisions soared 47% in the week to 31 May, compared with the same week a year before.
  • The Guardian: Australian mining giant BHP Billiton accounts for more than half of 1% of all global greenhouse gas emissions, a report has found; Heinrich Böll Foundation, a German thinktank, ranks BHP No 20 on its list of 81 major carbon emitters in its annual Carbon Majors Funding, Loss and Damage report.
  • The Independent: Vodafone is increasingly using the tax haven of Luxembourg as a base to manage its global spending, in a move that will reignite the controversy about its tax practices.
  • The Independent: Britain’s anti-fraud agency is examining information from a global investigation into the possible manipulation of currency markets, in the first sign that it might follow the United States in launching a criminal investigation.
  • The Daily Telegraph: US car giant General Motors has called back more than 100,000 additional cars, with some experiencing airbag problems.
  • The Daily Telegraph: Pope Francis has sacked entire Vatican financial watchdog board.

Share tips, comment and bids

  • Financial Times: Game Digital, the successor to the video game chain that collapsed into administration two years ago, has priced its forthcoming initial public offering at the lower end of the range, as the market for European flotations faces concerns about overheating.
  • Financial Times: Just a month after weak demand forced pork producer WH Group to pull its planned $2 billion listing, international investors including KKR are ploughing funds into the pork unit of Cofco, China’s state-owned food company.
  • Financial Times: Monte dei Paschi di Siena, Italy’s third-largest bank by assets, has priced its €5 billion fundraising at a deep discount as it seeks to raise almost twice the value of its market capitalisation in the run up to the European asset quality review and stress tests.
  • Financial Times (Lex): Robots: rise of the machines.
  • Financial Times (Lex): Getting rich: buy trying.
  • Financial Times (Lex): Chinese food: slim pickings.
  • Financial Times (Lex): Deutsche Bank: Chutzpah.

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