Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Tuesday Papers: Argentina faces fresh default

Tuesday Papers: Argentina faces fresh default

Top stories

  • Financial Times: Argentina is facing the prospect of a fresh default after the US Supreme Court refused to overturn lower court rulings that ordered Buenos Aires to pay billions of dollars to some of its creditors.
  • The Independent: Escalating violence in Iraq threatens to unleash an oil price spike that would put an end to the greatest period of price stability for nearly half a century, BP’s chief economist has warned.
  • The Daily Telegraph: Home Secretary has extended pilot scheme that allows Chinese tour operators to use the European Schengen form to also apply for UK visas.
  • The Guardian: MySale, the website that runs clearance sales for fashion brands, made an inauspicious debut as a company listed on the London Stock Exchange after a pricing error meant it accidentally ran a flash sale of its own shares.
  • Financial Times: Federal Reserve officials have discussed whether regulators should impose exit fees on bond funds to avert a potential run by investors, underlining concern about the vulnerability of the $10 trillion corporate bond market.
  • The Independent: The International Money Fund has cut its growth forecast for the United States economy this year to 2% and said the Federal Reserve could have the option of leaving its policy interest rates at zero for longer than markets are expecting.
  • Financial Times: General Electric is preparing to offer fresh concessions to the French government as it attempts to win approval for its $16.9 billion bid for Alstom and head off a rival offer from Siemens and Mitsubishi Heavy Industries.
  • The Guardian: The pound climbed to a near five-year high against the dollar as markets reacted to the prospect of an interest rate hike before Christmas.
  • The Guardian: Russian energy giant Gazprom has cut off gas supplies to Ukraine after the two countries failed to reach an agreement on the price, setting the stage for a new diplomatic stand-off.

Business and economics

  • Financial Times: Chinese ecommerce company Alibaba has named Michael Evans, a one-time candidate to succeed Lloyd Blankfein as chief executive of Goldman Sachs, among its independent board members as it prepares to float in the US.
  • Financial Times: BP will sign a deal worth more than £5 billion to supply liquefied natural gas to China and Royal Dutch Shell will announce a global alliance with Chinese state energy giant Cnooc on Tuesday, according to people familiar with the matter.
  • Financial Times: The poorest fifth of British households are among the most economically deprived in western Europe and suffer levels of poverty on a par with those in the former Eastern bloc, according to new research.
  • Financial Times: The US has defended a decision to exclude financial regulation from a vast transatlantic trade pact amid mounting pressure from the EU and the financial industry to include it, arguing that doing so would only complicate the regulatory landscape unnecessarily.
  • Financial Times: The growth of smartphone sales in developed countries is slowing or has even peaked, according to research, giving further impetus for strategic shifts by companies such as Apple and Samsung into services, content and products such as wearable devices.
  • Financial Times: The rough tactics of Wall Street dealmaking broke new ground on Monday after Allergan, the Botox-maker and target of a $53 billion takeover attempt by Valeant, exposed private emails in which its suitor’s own bankers referred to their client as a “house of cards”.
  • Financial Times: North American investors are pouring billions of dollars into British care homes for the elderly, particularly in the more wealthy southeast, where the number of self-paying customers seeking hotel-style residences is expected to grow.
  • Financial Times: Airbus and Safran have agreed to set up a joint venture to develop launchers for satellites and other space vehicles in a move intended to provide stronger competition for low-cost rivals led by Elon Musk’s SpaceX.
  • Financial Times: South Korea and the EU have joined forces to promote and develop the world’s next generation of mobile internet network.
  • Financial Times: One of Asia’s richest families has failed in its attempt to take its Chinese property arm private, after too few shareholders approved the deal in a meeting on Monday; New World Development, part of the Cheng family empire that also includes the jeweller Chow Tai Fook, offered in March to buy back the 31 per cent of New World Development China that it did not own for HK$18.6 billion (US$2.4 billion).
  • Financial Times: Medical device companies are eyeing more consolidation after Medtronic agreed to buy Covidien in a $42.9 billion deal that highlights pressure on the industry to increase scale and efficiency.
  • Financial Times: Hackers are holding Domino’s Pizza to ransom after stealing the personal data of more than 600,000 of its customers in France and Belgium.
  • Financial Times: The UK financial watchdog has fined Credit Suisse and Yorkshire Building Society a total of £3.8 million for the “misleading” promotion of a structured product to thousands of risk-averse investors.
  • Financial Times: Glencore has organised a plus-$1 billion loan backed by crude oil to allow Chad to buy the assets of Chevron in the country, the latest sign of the commodities house’s interest in the central African nation.
  • Financial Times: Tesco has suffered a fresh setback after Moody’s downgraded the retailer’s credit rating to its second lowest investment grade level.
  • Financial Times: HSBC has appointed Patrick Burke as it new US head, promoting the banker who in the past four years has spearheaded the wind-down of the lender’s legacy Household consumer finance business.
  • Daily Mail: Severn Trent has given new boss Liv Garfield a £2.4 million share windfall as a golden hello on top of her annual pay.
  • Daily Mail: Productivity in the UK economy remains 16% below where it should be despite the recovery, the Bank of England said in its quarterly bulletin.
  • The Guardian: Telefonica will win EU approval for its €8.6 billion (£6.9 billion) bid for KPN's German unit E-Plus after agreeing to let smaller rivals in Germany piggyback on its mobile network.
  • The Guardian: The scale of the task facing Mario Draghi, president of the European Central Bank, in his attempt to prevent Europe sliding into a damaging deflationary spiral was underlined on Monday when new data showed inflation falling to a five-year low in May.
  • The Guardian: Majestic Wine said a cocktail of tax increases and bad harvests had caused a sales headache for the company as it reported flat annual profits.
  • The Independent: The Pope has launched a scathing attack on financial speculation, dubbing betting on commodity prices a “scandal”, as he called on the rich to share their wealth.
  • The Independent: Menswear specialist Oliver Brown - the only firm able to sell top hats inside the gates of Royal Ascot - has seen a spike in sales ahead of the annual racing event.
  • The Daily Telegraph: General Motors has recalled 3 million cars over ignition faults; US car giant raises charges for recall repairs from $400 million to $700 million in the second quarter.
  • The Daily Telegraph: FirstGroup chief handed 86% pay bump despite troubles; Tim O'Toole's total remuneration package hits almost £2 million, up from £1.1 million previously.
  • The Daily Telegraph: TV service backed by BT and TalkTalk has vowed to appeal after it is found to infringe 'YourView', an online billing system developed by the small Gloucestershire telco Total Ltd.
  • The Daily Telegraph: Asia's corporate funding needs will outstrip those of the US and Europe combined by 2018, according to the latest report by Standard & Poor's Ratings Services.
  • The Daily Telegraph: The cooling property market, which started in London, has now spread to the regions.
  • The Daily Telegraph: Ultra high net worth individuals from India spent £1 billion on luxury homes in London last year.

Share tips, comment and bids

  • Financial Times: The board of Hillshire Brands has withdrawn its recommendation to acquire frozen foods maker Pinnacle Foods, clearing the way for Tyson Foods’ $8.55 billion takeover bid.
  • Financial Times: Australian support services company UGL is selling off its property advisory business DTZ to a consortium of two private equity groups and a pension fund for $1.1 billion, in the latest of a wave of international real estate transactions.
  • Financial Times: Paris-based buyout house PAI Partners has agreed to take over joint control of one of the world’s largest makers of foie gras, Labeyrie Fine Food, betting on the company’s international prospects despite calls by animal rights activists for a boycott of the product.
  • Financial Times: Wizz Air has become the second company in a month to scrap plans to float in London, blaming recent volatility in airline share prices.
  • Financial Times: Vodafone has taken a further step towards its aim of becoming a global provider of connected car services, with the £115 million acquisition of Cobra Automotive Technologies.
  • Financial Times: Portugal’s largest construction group on Monday said it would list its Africa subsidiary on the London Stock Exchange, joining a wave of initial public offerings in the UK by African businesses over the past six months.
  • Financial Times: Mitchells & Butlers has completed its £266 million purchase of rival pub chain Orchid’s estate as the UK’s biggest pub group by sales attempts to fire up growth.
  • The Daily Telegraph: Abzena, the biotech firm that helps drug makers "engineer" proteins to be used as medicines to make stock market debut.
  • Financial Times (Lex): Alibaba: second time lucky.
  • Financial Times (Lex): Medtronic / Covidien: tax and save.
  • Financial Times (Lex): Gazprom: heat is off.
  • Financial Times (Lex): Alstom: messy proposal.
  • Financial Times (Lex): Level 3 / TW Telecom – bold move.
  • Financial Times (Lex): Williams / Access: firm but yielding.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter