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Thursday Papers: Carney highlights interest rate rise risks

Thursday Papers: Carney highlights interest rate rise risks

Top stories

  • Financial Times: Mark Carney sent the strongest signal yet that the Bank of England was preparing to raise interest rates; but the bank governor voiced deep concerns over the ability of UK households to cope with higher borrowing costs.
  • The Daily Telegraph: Big Six energy suppliers could be broken up by investigation into profits and prices, as Competition and Markets Authority sets out its concerns about the sector.
  • The Guardian: Hot weather provided a boost for Britain's retailers in July as consumers stocked up on summer clothes and food for the barbecue; the CBI's monthly snapshot of spending showed activity bounced back strongly this month after a marked slowdown in June.
  • The Independent: Lucrative hospital pharmacy services are being sold off to private companies such as Boots and Lloyds because a tax loophole puts the NHS at a huge disadvantage when bidding to keep them publicly operated.
  • The Guardian: Facebook comfortably beat Wall Street expectations on Wednesday, announcing that its once-struggling mobile business now accounts for 62% of advertising revenues.
  • The Guardian: The GlaxoSmithKline chief executive, Sir Andrew Witty, has reiterated that his company has a "zero tolerance" attitude to the corrupt sales practices it is being accused of in China and other countries; Witty was speaking as Britain's largest drugmaker announced a 14% fall in second-quarter profits to £1.3 billion.
  • The Daily Telegraph: Serious Fraud Office is to file charges against the French engineering giant Alstom "imminently", as it starts proceedings against two of its companies in the UK.
  • Financial Times: The head of Germany’s central bank has invoked the ghost of Winston Churchill to urge Britain to stay in the EU, before a possible referendum on membership planned for 2017.

Business and economics

  • Financial Times: The chairman of Standard Chartered is weighing a succession plan that could see Peter Sands replaced as the chief executive of the UK-based emerging markets bank, amid shareholder pressure.
  • Financial Times: George Osborne’s plan to raise £20 billion from state privatisations by the end of the decade has been thrown into doubt, with some proposed sales expected to drift beyond the next election.
  • Financial Times: Metro Bank continues to draw in customers as the challenger to established lenders seeks to benefit from efforts to boost competition in UK retail banking.
  • Financial Times: British officials have faced criticism from MPs for granting 251 export licences for armaments and sensitive equipment to Russia in the past year, despite UK promises to stop exporting weaponry to Moscow.
  • Financial Times: The number of households struggling to keep up with their mortgage payments will double to 2.3 million by 2018, even under the scenario of small, gradual interest rate rises suggested by the Bank of England, a study has found.
  • Financial Times: The proposed fivefold increase in the cost of using airwaves for mobile services will be reviewed again by the British telecoms regulator following warnings that it would hit the industry’s ability to invest.
  • Financial Times: Lawyers have dismissed as “diabolically ludicrous” a plan put forward by Britain’s biggest insurer, Aviva, to prevent car crash victims who sustain whiplash injuries from receiving cash compensation; victims of “minor, short-term” injuries would be entitled to rehabilitation but no cash payments under Aviva’s plan.
  • Financial Times: The ruling in a $100 billion damages claim against Russia by shareholders of the defunct Yukos oil company will be revealed next week in a step that could provoke new recriminations between Moscow and the west.
  • Financial Times: Google is braced for a showdown with European privacy watchdogs over demands the continent’s “right to be forgotten” online is extended across the world, with sensitive links stripped from all global versions of the search engine.
  • Financial Times: Brussels unveiled a 30 per cent energy efficiency target on Wednesday aimed at weaning Europe off Russian gas, but appeased opponents by stopping short of demanding that the goal be obligatory.
  • Financial Times: Goldman Sachs’ legal team has received a stinging rebuke from a high-court judge for running up “ludicrous” fees of £1 million over a nine-month period in a relatively minor £8.8 million lawsuit.
  • Financial Times: One of the US’s largest pension funds has asked Pepsi to give activist investor Nelson Peltz a seat on the board, after becoming disillusioned with the soft drinks maker’s performance.
  • Financial Times: BHP Billiton mined a record amount of iron ore in the 12 months to July, beating its own forecasts, and said production would expand further in 2015 as the company squeezes extra capacity out of its existing infrastructure.
  • Financial Times: Alstom has said its orders doubled in the first fiscal quarter thanks to a large South African rail contract, as it seeks to convince investors that its transport business can flourish by itself ahead of the sale of its energy division.
  • Financial Times: Spain’s controversial energy reform took its toll on Iberdrola once again, as the country’s biggest power group reported a 13% decline in first-half earnings to €1.5 billion.
  • Financial Times: Boeing on Wednesday raised its earnings guidance for 2014 as the US aircraft manufacturer reported higher revenue and profit in the second quarter because of increased deliveries of passenger jets to customers.
  • Financial Times: Deutsche Bank’s expansion plans in the US face potential obstacles after a stern warning from the New York Federal Reserve about the standard of its regulatory reporting raised questions over the lender’s ability to pass future US stress tests.
  • Financial Times: Shares in Portugal’s Banco Espírito Santo rebounded strongly on Wednesday after international investors acquired shareholdings in a sign of growing confidence in the troubled Portuguese lender.
  • Financial Times: The popularity of family films such as Disney’s Frozen helped boost pay-television subscribers at TalkTalk, the low cost British telecoms-to-TV operator.
  • Financial Times: The continued recovery of Mercedes-Benz sales in China and the launch of sporty new models kept Daimler on track to catch up with German rivals BMW and Audi in the second quarter.
  • Financial Times: Shares in Renishaw surged on Wednesday after the precision engineer, which makes 3D printing machines, reported record full-year revenues despite the negative effects of a strong pound.
  • Daily Mail: Centrica is closing in on BP’s Iain Conn as its new boss, with a gentleman’s agreement over his £16 million stock options understood to have been reached.
  • Daily Mail: Britain is in line for another vote of confidence from the International Monetary Fund today, when it updates its forecasts for the global economy.
  • Daily Mail: UK banks have been told to prepare for tougher EU sanctions on Russia; the escalating crisis has prompted City regulators to step up discussions with banks about loans to Russian clients.
  • Daily Mail: Regional airline Flybe has seen its turnaround plans take-off resulting in its planes being three-quarters full after it ditched loss-making routes and stepped up fare promotions.
  • Daily Express: Capita, the FTSE 100 company has benefited from turmoil at scandal-hit rivals Serco and G4S to scoop up £1.3 billion of major contracts as the public and private sectors outsource more work.
  • The Guardian: General Motors has announced another six safety recalls covering another 717,950 recent model vehicles in the US and pushing its worldwide total of recalls for this year past a record breaking 40 million.
  • The Guardian: The payday lender Cash Genie may have to pay compensation to customers after it uncovered a string of problems with the way it had imposed charges and collected money from borrowers who were in arrears.
  • The Independent: China has arrested five people in connection with an ongoing probe into allegations that a Shanghai-based food firm supplied "rotten" meat to clients, including McDonald's, KFC and Pizza Hut.
  • The Daily Telegraph: Bombardier has put UK jobs at risk with major shake-up as the Canadian company to cut 1,800 jobs, around 15% of its total aerospace workforce.
  • The Daily Telegraph: Renters are spending double their slice of income on housing than home owners do, squeezing the young out of the property market.

Share tips, comment and bids

  • Financial Times: CVC Capital Partners, the European private equity group that last year amassed $15 billion for leveraged buyouts, is raising a separate fund to invest in fast-growing technology companies, a move that highlights buyout fund managers’ scramble to grab a share of the digital revolution.
  • Financial Times: Kazakhmys has firmed up plans to split most of its mines into a company headed by its largest shareholder.
  • Financial Times: BSkyB is poised to confirm its European expansion on Friday by announcing a deal to acquire its sister companies in Germany and Italy from Rupert Murdoch’s 21st Century Fox.
  • Financial Times (Lex): Standard Chartered: bank charges.
  • Financial Times (Lex): Pepsi: treatment, not surgery.
  • Financial Times (Lex): Food M&A: tasty morsels.
  • Financial Times (Lex): Deutsche Bank: Club rules.
  • Financial Times (Lex): Microsoft’s reporting: cool story, bro.

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