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Thursday Papers: US launches $400bn Libor case

Thursday Papers: US launches $400bn Libor case

Top stories

  • The Times: The US government has filed what could be the largest Libor scandal-related lawsuit yet against some of Britain’s biggest lenders, alleging that their role in rigging borrowing rates had played a part in the collapse of American banks once worth more than $400 billion.
  • Financial Times: Stanley Fischer, one of the Federal Reserve’s top policymakers, has attacked attempts to reverse the post-crisis drive for tougher regulation, calling efforts to loosen constraints on banks “dangerous and extremely short-sighted”.
  • The Daily Telegraph: The rise of the UK’s nascent shale industry is "overhyped" and 55 million years too late, according to new research of the UK’s geology.
  • Financial Times: The number of EU nationals working in the UK has hit a record high, driven by a large increase in the number of Bulgarian and Romanian citizens who have found employment here.
  • Financial Times: Akzo Nobel, the Dutch paints group, has ended a bitter feud with its largest shareholder, Elliott Advisors, the aggressive US activist hedge fund, by agreeing to appoint three new directors to its board.
  • Financial Times: Donald Trump’s high-level business advisory groups have fallen apart after chief executives walked away in protest against the president’s failure to clearly denounce white supremacist violence in Charlottesville over the weekend.
  • Financial Times: PwC has been fined a record £5.1 million by the UK’s accounting watchdog for “extensive misconduct” relating to the audit of RSM Tenon, a professional services group put into administration in 2013.

Business and economics

  • Financial Times: Carlsberg has delivered profits ahead of expectations but investors fretted about warnings of a tougher second half of the year from the Danish brewer as well as a lack of revenue growth.
  • The Guardian: Bill Gates, the world’s richest man, has donated $4.6 billion (£3.6 billion) in the Microsoft founder’s biggest gift to charity since he set up the Bill & Melinda Gates Foundation.
  • Daily Mail: The threat of terrorism and a drop in the number of Britons taking holidays abroad led budget airline Monarch to post a crippling loss of nearly £300 million last year.
  • The Times: Higher costs have tarnished the latest figures from Hochschild Mining, reducing its first-half profits by a third.
  • Daily Mail: Civil engineer Balfour Beatty swung back into profit in the first half with boss Leo Quinn's turnaround plan showing signs of fruition.
  • The Times: Apple will seek to rival blockbuster shows such as Game of Thrones with a $1 billion production budget to make and buy television series and films.
  • The Times: British-based banks planning to relocate operations to another country in the European Union before Brexit have been warned that merely putting up a brass plate while keeping the managers in London would not be tolerated.
  • Financial Times: Profit growth at insurance company Admiral was held back by increases in personal injury payouts in the first half of the year after the government this year changed a key rate used to calculate them.
  • The Times: Angela Merkel insisted that German taxpayers were unlikely to have to pay out after Ryanair complained about a loan to keep Air Berlin going when it filed for bankruptcy protection.
  • The Times: A woman is to lead the board of a top American bank for the first time with the appointment of Elizabeth Duke, a former Federal Reserve official, as chairwoman of Wells Fargo.
  • Financial Times: Lookers, Britain’s largest motor dealership, has downgraded its outlook for UK car sales this year, warning that price rises and worries about Britain’s departure from the EU will harm consumer sentiment.
  • Financial Times: Three brokers have upgraded their ratings of Toshiba for the first time since its finances were plunged into crisis last year, and a growing number of event-driven hedge funds are placing their bets on a miracle escape.
  • The Times: More than 13,000 of the lowest paid workers will receive a combined total of £2 million in back pay after investigations by the taxman into companies that fail to pay the minimum wage.

Share tips, comment and bids

  • The Times (Tempus share tips): BUY Admiral; TAKE PROFITS from CLS Holdings; AVOID Lookers.
  • The Daily Telegraph (Questor share tips): BUY Mercadolibre.
  • The Times: Elliott Advisors has upped the ante in its campaign for change at BHP Billiton, increasing its stake in the mining group to boost its shareholder rights.
  • The Times: A joint venture involving Amec Foster Wheeler and Interserve has landed a four-year maintenance contract worth up to £160 million at the Sellafield nuclear site in Cumbria.
  • Financial Times: Prudential has sold its US broker-dealer network for as much as $448 million to focus on “manufacturing” retirement products, days after the insurer announced a restructuring of its UK operations.
  • Financial Times (Lex): Tencent: the games and payments group could do much better in advertising revenue.
  • Financial Times (Lex): Elliott Advisors: European boards used to scoff at US hedge funds seeking reforms. Not any more.
  • Financial Times (Lex): Admiral: UK insurer’s overseas unit is over a decade old but a long way from profitability.
  • Financial Times (Lex): Tech bonds: fund managers had to open their minds with bond offerings from Tesla and Amazon.
  • Financial Times (Lex): Priceline: the online travel agent may have to settle for lower growth.

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