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Thursday Papers: Fed calls historic end to quantitative easing

Thursday Papers: Fed calls historic end to quantitative easing

Top stories

  • Financial Times: The Federal Reserve will throw its crisis-era stimulus programme into reverse from next month and stick with plans for further rate rises, in a mark of confidence that stagnant inflation is set to bounce back.
  • The Daily Telegraph: Fears are growing that the mega-merger between Tata and Thyssenkrupp’s European steel business to create a £13.3 billion-a-year industry giant and safeguard their futures – along with thousands of British jobs – will only grant a temporary reprieve.
  • The Times: Britain will fall to the bottom of the advanced economy growth league next year as the country is overhauled by Japan, Canada, France, the United States and Italy, according to the Organisation for Economic Co-operation and Development.
  • Financial Times: AP Moller-Maersk has continued its break-up, selling its oil tanker business for $1.2 billion to the family investor that is the Danish conglomerate’s controlling shareholder.
  • Financial Times: Bain Capital, Apple and other US tech groups have agreed a $18 billion acquisition of Toshiba’s prized memory chip business, marking one of the biggest private equity-led buyouts since the end of the financial crisis.
  • Financial Times: Switzerland’s takeover body has demanded that HNA clarify its ownership structure because of apparent changes to the acquisitive Chinese conglomerate’s shareholder base after its SFr1.4 billion buyout of air services company Gategroup.
  • Financial Times: US lawmakers with access to sensitive intelligence have expressed fears that Russia’s campaign to influence US politics via Facebook is continuing today even as American investigators probe Moscow’s use of social media in the 2016 election.

Business and economics

  • The Times: Shoppers shrugged off rising prices and lingering Brexit worries last month to spend far more than expected.
  • The Guardian: Mitie Group may cut up to 480 jobs as it overhauls its cleaning and engineering divisions, saying the cost of its turnaround will be higher than expected.
  • The Times: The Chinese owner of House of Fraser has finally pumped £25 million into the department stores group to boost its “transformation plan” and improve its trading amid steep first-half losses.
  • Daily Mail: Inditex, which owns Zara as well as teen label Bershka and underwear chain Oysho, said its profits for the period rose 9% but its margins were hit by the stronger euro.
  • Daily Mail: Kingfisher, which owns DIY brands B&Q and Screwfix, has seen its share price rise over 7% to 316.7p on Wednesday.
  • The Times: Concerns about issues in both China and India sent Diageo spinning to the bottom of the FTSE 100 fallers’ board yesterday.
  • The Daily Telegraph: Plymouth-based luxury super yacht company Princess Yachts has almost doubled its order book this year as it embarks on a £100 million investment programme.
  • The Guardian: Ryanair customers face the threat of a fresh wave of flight cancellations as the airline’s pilots prepare to reject an offer of a cash bonus if they give up days off.
  • Financial Times: Pfizer has sued Johnson & Johnson for using “anti-competitive practices” to stymie a copycat version of its $7 billion arthritis drug, opening a new front in the battle over an emerging class of medicines known as biosimilars.
  • Financial Times: Mark Walter’s role as chief executive of Guggenheim Partners is hanging in the balance as a power struggle between the founder of the $240 billion asset manager and the firm’s chief investment officer Scott Minerd comes to a head.
  • The Daily Telegraph: Dominic Chappell, the former bankrupt who bought BHS for £1 and presided over its collapse 13 months later, has denied failing to hand over information to The Pensions Regulator after saying that he had not been able to read the case against him because he had been "offshore, on a boat".
  • The Times: The accounting watchdog is under pressure to publish a register of conflicts of interest after clearing KPMG of any wrongdoing in the HBOS scandal while 11 of the firm’s present or former partners sat on its key decision-making committees.
  • Financial Times: Russia’s central bank says it is considering a rescue of B&N Bank, a large private lender, three weeks after another Russian bank had to be bailed out.
  • The Times: The march of the machines threatens to rob poor countries of a key advantage in the battle to lure manufacturers, the World Bank has warned.

Share tips, comment and bids

  • The Daily Telegraph (Questor share tips): BUY Rentokil.
  • The Times (Tempus share tips): Babcock International earnings outlook suggests security.
  • The Guardian: The Taiwanese smartphone and virtual reality headset manufacturer HTC will halt shares from Thursday, pending the “release of material information” following media reports of a purchase by Google’s parent, Alphabet.
  • The Daily Telegraph: Anil Agarwal, the Indian billionaire who earlier this year made a surprise £2 billion investment in Anglo American, looks set to tighten his grip on the London-based miner, revealing plans to buy up to a further £1.5 billion in shares.
  • Financial Times: Wealth management is set to become the latest battle ground between Chinese internet giants Tencent and Alibaba after Tencent announced a $370 million investment and “strategic co-operation” with the country’s oldest brokerage China International Capital Corp (CICC).
  • The Daily Telegraph: German energy giant Eon is in talks to sell its stake in the fossil fuel and trading company Uniper to Finnish utility Fortum for €3.8 billion.
  • The Daily Telegraph (Comment): Yellen Fed courts fate by reversing QE so soon.
  • The Times (Comment): Economists believe rates increase would be a mistake.

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