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Thursday Papers: Deutsche Bank under pressure to raise capital

Thursday Papers: Deutsche Bank under pressure to raise capital

Top stories

  • Financial Times: Deutsche Bank is facing pressure from investors to raise capital amid fears the bank is still not robust enough to cope with a tougher regulatory environment and a slump in global debt markets.
  • The Guardian: The mood in Britain's factories is at its most upbeat in more than 40 years, a survey by the CBI shows, in what could prove to be an important pre-election boost for the government.
  • The Daily Telegraph: Apple to return $130 billion to shareholders after profits and revenues jump on an unexpected surge in iPhone sales.
  • Financial Times: Institutional investors are pouring billions into loss-absorbing “coco” bank bonds in the latest sign that the global hunt for income is pushing mainstream investors into riskier, untested assets.
  • The Guardian: Barclays is braced for a stormy annual shareholder meeting today with protesters pledging to question its role in tax havens, funding of coal mines and the £9 billion of bonuses paid out to its investment bankers since the financial crisis.
  • The Guardian: The Royal Mail privatisation will be the subject of fresh scrutiny by MPs next week when bankers from Goldman Sachs and UBS - which handled the sell-off of the 500-year-old institution - are summoned to give evidence to a high-profile parliamentary committee.
  • The Independent: The Government has recorded its fifth year in a row of £100 billion-plus deficits despite meeting borrowing targets, according to official figures released today.

Business and economics

  • Financial Times: Facebook completed a year of trumping earnings expectations on the back of strong growth in mobile advertising, reporting first-quarter results that sent the stock up 4% in after-hours trading.
  • Financial Times: Shares in Drax, the UK power generator, fell more than 13% after it said it was launching legal proceedings against the government over a surprise decision to pull a key subsidy the company had been banking on.
  • Financial Times: An independent Scotland would struggle to support a viable banking sector in times of trouble, the credit rating agency S&P said dealing a blow to the Yes campaign.
  • Financial Times: Business leaders have welcomed the decision by Flybe to establish new domestic and short-haul routes from London City airport.
  • Financial Times: Developing Britain’s shale gas reserves will present a multibillion pound opportunity for companies in the oil and gas supply chain and potentially generate 64,000 jobs, according to new research.
  • Financial Times: UK car production jumped in March as the resurgent industry targets decade-high output this year.
  • Financial Times: The US Federal Reserve is highly likely to slow its asset purchases by another $10 billion next week as the economy shakes off its winter torpor.
  • Financial Times: Mike Ashley, the controversial founder of Sports Direct, has thrown down the gauntlet to institutional investors, who blocked a scheme that could have paid him a £70 million bonus, and is considering a fresh incentive arrangement.
  • Financial Times: Taxi hailing app Uber is planning an aggressive drive for Asian expansion, as its vehicles enter the teeming streets of India’s financial capital Mumbai later this week.
  • Financial Times: AIG is offering a new type of insurance policy to compensate companies for cyber attacks that damage property and even harm people in response to rapidly evolving cyber security threats.
  • Financial Times: New customers moving into the “internet of things” pushed up licensing revenues at Arm Holdings in its first quarter, helping the microchip designer post a near 10% rise in pre-tax profits despite sluggish growth in the high-end smartphone market that has been at the heart of its success.
  • Financial Times: Turbulence in emerging markets is forcing Procter & Gamble to raise the price of its products for consumers as it tries to offset the damage done to sales by weak currencies and inflation.
  • Financial Times: Ericsson missed analysts’ expectations for revenue in the first quarter as the world’s largest telecoms equipment maker put the focus on increased profitability.
  • Financial Times: Volkswagen’s bid to acquire the remainder of Scania that it does not already received a further blow when the truckmaker’s third-biggest shareholder rejected the offer, setting up a tense conclusion to the offer period.
  • Financial Times: Andrew Liveris, chief executive of Dow Chemical, has met activist investor Daniel Loeb “several times” to discuss the shareholder’s call for a break-up of the group.
  • Financial Times: LG Display, the world’s second-largest display maker, reported its weakest quarterly profit in two years amid slow demand for TV panels and oversupply, but the company’s earnings are expected to improve in coming quarters, helped by the expected launch of Apple’s new iPhone.
  • Financial Times: Amazon raised the stakes in its battle with Netflix for supremacy in online video streaming by striking a deal with HBO to gain access to some of the most popular shows from the pay-TV channel’s library, including The Sopranos, Six Feet Under and The Wire.
  • Financial Times: Warren Buffett, whose Berkshire Hathaway is Coca-Cola’s largest shareholder, said he believed the US drinks company’s plan to award shares to employees was “excessive” but abstained from voting on the measure on yesterday.
  • Financial Times: Viom Networks, the Indian telecom infrastructure company majority owned by Tata group, is preparing for an initial public offering in a deal that would mark one of the first overseas stock market debuts by an Indian company.
  • Financial Times: Short sellers have slightly increased their bets against insurance claims processor Quindell, wagering that its shares are still overvalued even after hundreds of millions of pounds were wiped from its market value.
  • Financial Times: Directors of UK-listed companies face tougher rules governing bonus payments amid broad pressure for more pay discipline in the boardroom.
  • Financial Times: Boeing increased its full-year earnings projections and announced first-quarter results ahead of analysts’ expectations, as Jim McNerney, chief executive, said the aerospace and defence group was poised for “significant and sustained growth”.
  • The Guardian: Europe's recovery from its debt crisis took two significant steps forward yesterday as Greece posted a primary budget surplus and Portugal made a successful return to the bond markets for the first time in three years.
  • The Guardian: The budget retailer, owned by Associated British Foods, will open its first store in Boston, Massachusetts, in 2015 and said it was in negotiations to open up to eight further stores in north-east America, with warehousing to support them.
  • The Daily Telegraph: Mark Pincus to step down as chief product officer at Zynga less than a year after he was replaced as CEO.
  • The Daily Telegraph: Fraudulent car insurance claims has gone up by 20%, according to Britain's biggest insurer Aviva that is investigating 5,500 suspicious injury claims.
  • Daily Mail: Bank of England has raised growth forecast for first quarter to 1% as manufacturers report best orders since 1995.
  • Daily Mail: Property owners expect house prices to rocket by an average of 8.8% between now and September, a survey has found.
  • Daily Express: A rise in business travel helped boost Eurostar’s revenues in the first quarter by 7% to £227 million.

Share tips, comment and bids

  • The Daily Telegraph: General Electric in talks to buy Alstom, the train and power equipment maker, for $13 billion.
  • Financial Times: Insurance-to-travel group Saga is putting the finishing touches to a multibillion-pound flotation, joining a flock of companies seeking to tap welcoming stock markets.
  • Financial Times: The owner of Patisserie Valerie, the speciality café chain and cake maker with historic roots in pre-war Soho, is to float on London’s junior market with an initial placing intended to raise £33 million.
  • Financial Times: US e-cigarette manufacturer Victory Electronic Cigarettes has bought VIP Electronic Cigarette in a deal worth £30 million in an attempt to face off competition from “big tobacco”.
  • Financial Times (Lex): US natural gas: cold winter promises a hot year ahead for the sector.
  • Financial Times (Lex): Apple: results beat expectations but next big product remains an unknown.
  • Financial Times (Lex): AB Foods: given history of British retail failures in the US, why is Primark going to Boston?
  • Financial Times (Lex): Newmont / Barrick Gold: synergies – compared with valuations – may revive merger.
  • Financial Times (Lex): Asia IPOs: getting into deals remains easier than getting out of them.
  • Financial Times (Lex): LG Display: display companies remain short-term trades, not investments.
  • The Guardian (Comment): CBI confidence is as high as 1973 - the year the economy went south.

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