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Thursday Papers: UK unemployment falls to five year low

Thursday Papers: UK unemployment falls to five year low

Top stories

  • Financial Times: The world must act to contain the risk of another devastating housing crash, the International Monetary Fund warned on Wednesday, as it published new data showing house prices are well above their historical average in many countries.
  • The Guardian: Rigging the foreign exchange, bond and commodity markets could become a criminal offence, the government will warn the City as part of its latest effort to clean up the financial markets after a wave of scandals and allegations relating to key benchmarks.
  • The Daily Telegraph: Strong jobs growth continued as UK unemployment rate fell to five year low, but wage data show prices are rising much faster than pay packets again.
  • Financial Times: Britain’s bid to become the leading centre for offshore trading in the renminbi is set to receive a boost with the designation of China Construction Bank , the country’s second-largest lender, as a clearing bank in London for the Chinese currency.
  • Financial Times: Airbus suffered a major setback on Wednesday after it emerged that Emirates Airline, the fast-growing Gulf carrier, had cancelled a $16 billion order for 70 of its new A350 passenger jets.
  • Financial Times: Siemens and Mitsubishi Heavy Industries have joined forces to plan a joint bid for Alstom’s energy assets – in a move that pits the German and Japanese industrial conglomerates against General Electric of the US, which has already offered $16.9 billion for the French group’s energy business.
  • The Independent: The European Commission is set to open an in-depth investigation into the tax practices of Starbucks, Fiat and Apple in three European countries; the probe will examine whether they benefited from special tax deals in Ireland, Luxembourg and The Netherlands.
  • The Independent: Sainsbury's outgoing chief executive Justin King has insisted the supermarket will not unravel when he leaves – as Tesco did after Sir Terry Leahy's departure – despite revealing a second consecutive quarter of falling sales.
  • The Independent: The government is to step up its crackdown on fake goods in the UK as a new report revealed clothing, tobacco and alcohol are the top products targeted by counterfeiters.
  • Financial Times: Quindell, the fast-growing software consultancy, has been refused entry to the UK’s main stock market; Quindell’s acquisition record and expansion have come under sharp scrutiny from short sellers in recent months.

Business and economics

  • Financial Times: Jaguar Land Rover is planning to build an engine factory in China, as it steps up a strategy to internationalise its production footprint.
  • Financial Times: Downing Street has ordered a wide-ranging review of the UK’s ability to tackle bribery and white-collar crime amid concern that repeated scandals are tarnishing London’s reputation as an international financial centre.
  • Financial Times: British car exports have doubled in value during the past decade, as UK factories increased production and shifted to higher-value vehicles, a study has shown.
  • Financial Times: The US Chamber of Commerce, the powerful American business lobby, has voiced concern about the potential scale of a fine on French bank BNP Paribas by US regulators, echoing anxious demands by the French government for moderation.
  • Financial Times: Bouygues Telecom, France’s third-largest mobile operator by subscribers, plans to slash more than 15% of its 9,000-strong workforce to stay alive in one of Europe’s most competitive markets.
  • Financial Times: Betfair will use its £210 million cash pile to try to capitalise on the fallout from a new taxation regime set to shake up the online gambling world later this year.
  • Financial Times: China has surpassed US becoming the largest car market in the world but it is dominated by foreign automakers; Chinese branded cars together account for less than 40% of the total market of more than 18 million vehicles in China, trailing well behind market leaders such as Germany’s Volkswagen and General Motors of the US.
  • Financial Times: Alibaba launched its first direct-to-consumer online shop in the US on Wednesday, as part of a move to expand more aggressively outside its home market.
  • Financial Times: The World Cup has unleashed an advertising scramble, with everyone from sportswear manufacturers to headphone makers trying to associate themselves with the sporting bonanza.
  • Financial Times: Asia Pacific has overtaken Europe to become the world’s biggest real estate investment market for the first time, thanks to largely to the booming Chinese property industry.
  • Financial Times: New York’s top banking regulator is pushing for the removal of a senior adviser at BNP Paribas as part of the settlement with US authorities over sanction violations.
  • Financial Times: Commerzbank has rid itself of more than €5 billion in property loans in Spain, Portugal and Japan as the German lender continues to run down assets in its so-called bad bank.
  • Financial Times: Shares in Monte dei Paschi di Siena, the Italian bank that has received three state bailouts in the past five years, tumbled 20% on Wednesday, amid its attempt to raise €5 billion in fresh capital to stave off nationalisation.
  • Financial Times: Inditex, the world’s largest fashion retailer by sales, on Wednesday beat market expectations with a 4% rise in first-quarter revenues and net profits that fell less than expected.
  • Financial Times: Shares in Vallourec fell 12% as the French steel pipes maker warned on Wednesday that profits this year would be hit by oil companies in Brazil and elsewhere running down their inventories and delaying projects to save money.
  • Financial Times: Lufthansa issued a profit warning on Wednesday, blaming ongoing strikes by workers as well as strong competition from state-owned Gulf carriers.
  • Financial Times: Hargreaves Services has pulled out of a plan to provide a loan to UK Coal, throwing into doubt the goal of a managed wind-down of two of Britain’s last remaining deep coal mines.
  • Financial Times: The UK accountancy watchdog is pursuing a formal complaint against the audit arm of UK chartered accountant Baker Tilly and two of its employees, as the often close relationship between companies and their auditors continues to draw scrutiny.
  • Financial Times: The hunt for the perfect cup of coffee drove sales at Benugo, the upmarket delicatessen that serves visitors to London’s V&A museum, the BFI Southbank and Edinburgh Castle in Scotland, 24 per cent higher in the year to December.
  • Daily Mail: Sterling hit an 18-month high against the euro yesterday after the biggest rise in employment since records began more than 40 years ago.
  • Daily Mail: London-based exploration company Soco International is ending its operations in the Virunga National Park, in the Democratic Republic of Congo (DRC), which is home to critically endangered mountain gorillas.
  • The Guardian: An appeal court ruling over compensation for a 27-hour flight delay could open the floodgates for thousands of air passengers claiming for holdups caused by technical difficulties.
  • The Guardian: WH Smith has stemmed falling sales for the first time in five years thanks to better sales at airports and new stores overseas.
  • The Guardian: Flybe's finances have returned to the black, after the regional airline turned around large losses after a painful period of restructuring.
  • The Guardian: BHP Billiton has canceled a $360 million contract at a Queensland's Goonyella Riverside coalmine, putting more than 400 jobs at risk.
  • The Independent: The giant online vendor Amazon has been reported of testing a new system in the US that links services to the thousands of products it sells; the move would offer a massive competition to existing trades-ratings sites as well as platforms such as Craigslist and Gumtree in the UK, analysts said; eBay is already testing a similar service in the UK called "eBay Hire".
  • The Independent: Thames Water’s profits climbed 79% last year but once again the London utility paid no corporation tax despite making a pre-tax profit of £259 million.
  • The Daily Telegraph: Sir Richard Lambert has called in executive search firm Spencer Stuart to look for an outsider to chair the Banking Standards Review Council.
  • The Daily Telegraph: HSBC Bank sold £4.2 billion of assets to life assurance unit of Swiss Re on its latest move of disposal of non-core businesses.
  • The Daily Telegraph: Audi is hoping to take BMW's global luxury sales crown within this decade after positive sales data from May.
  • The Daily Telegraph: Open warfare between the government and rebels in Iraq would pose a threat to the global economic recovery should oil production from the war-torn Middle East state suffer a serious disruption, analysts have warned.

Share tips, comment and bids

  • Financial Times: Control of Autobar, the UK food and drink vending machine company, will pass from buyout house CVC Capital Partners to a group of US investors in a debt restructuring.
  • Financial Times: Alibaba Group, China’s ecommerce giant, is to fully acquire the maker of the country’s most popular smartphone web browser UCWeb, as it seeks to compete with rival Tencent for mobile internet users.
  • Financial Times: Shares of Elior traded up for the French caterer’s return to the market in the country’s largest private equity-backed listing since 2007.
  • Financial Times: Japan Tobacco became the latest global tobacco manufacturer to enter the fast-growing electronic cigarette market after snapping up smaller UK rival E-Lites.
  • Financial Times: GoPro, a maker of wearable cameras used by surfers, snowboarders and extreme sports enthusiasts, is seeking a market capitalisation of up to $3 billion at an uncertain time for tech initial public offerings.
  • Financial Times: PhotoBox, the owner of online personalised card company Moonpig, has turned away from a possible float citing the “volatile” performance of recent initial public offerings in London.
  • Financial Times: Volution, which supplies ventilation products to the residential construction markets in the UK, Sweden and Germany, said on Wednesday it would seek a premium listing via an initial public offering that is expected to value the company’s equity at about £350 million – which would place it outside the FTSE 250.
  • Financial Times (Lex): EM bonds: are you nuts?
  • Financial Times (Lex): Lufthansa: plane crazy.
  • Financial Times (Lex): Inditex: Fashion FX.
  • Financial Times (Lex): Monte dei Paschi: penny-stock impression.
  • Financial Times (Lex): Vallourec: pipe dreams.

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