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Tuesday Papers: BNP Paribas bankers face personal penalties

Tuesday Papers: BNP Paribas bankers face personal penalties

Top stories

  • Financial Times: Several dozen BNP Paribas bankers will face demotions and cuts to their pay and bonuses as part of its expected record $8.9 billion settlement with US authorities.
  • The Independent: Mortgage approvals fell to an 11-month low in May, confirming that the lending market was already losing some steam before the Bank of England announced new curbs last week.
  • Financial Times: The new chief executive of Heathrow has signalled that the UK’s biggest airport is looking to increase the landing fees it charges airlines by as much as 20% in order to secure a return on a £17 billion investment in a third runway.
  • Financial Times: An expected pick-up in global capital investment by cash-rich companies has failed to materialise so far this year; although companies worldwide continue to have historically high levels of gross cash at $4.5 trillion for the top 2,000 companies by capital expenditure in 2013, spending is likely to decline 0.5% this year in real terms, according to Standard & Poor’s forecasts based on first-half data.
  • The Daily Telegraph: Marks & Spencer has restructured board as it handed responsibility for stores to internet boss in landmark move, while launching new core values.
  • The Guardian: Dozens of depositors have withdrawn savings from Bulgaria's third biggest bank despite assurances from the government and the European Union that their money was safe after a similar run shut down another major lender last week.
  • Financial Times: General Motors vastly widened the scope of its recalls over faulty ignition switches on Monday, recalling a further 8.23 million vehicles across North America and saying three people might have died because of the faults.
  • Financial Times: Fidelity, one of the world’s largest asset managers, has doubled its stake in Quindell, in a vote of confidence for the embattled claims management company.

Business and economics

  • Financial Times: A US attempt to force Microsoft to hand over emails held on servers in Ireland has drawn a strong rebuke from Brussels in one of the first tests of cross-border privacy raised by cloud computing.
  • Financial Times: Scotland’s shale gas and oil resources appear “modest” compared with those in England, according to a government survey published on Monday.
  • Financial Times: Large revisions to Britain’s national accounts this September will show the recession was shallower than previously thought and output has already passed its pre-recession peak.
  • Financial Times: AbbVie’s £27 billion takeover approach for UK-listed Shire has highlighted the scarcity of companies bridging the gap between big pharma and small biotech in Europe.
  • Financial Times: The US Supreme Court has sheltered HSBC, UniCredit and UBS from facing more than $10 billion in legal claims stemming from the Bernard Madoff Ponzi scheme.
  • Financial Times: Statoil delayed the development of its showcase Arctic oil project for a second time after a string of disappointing drilling results in the Norwegian Barents Sea.
  • Financial Times: Howard Millar, the veteran chief financial officer of Ryanair, is to step down at the end of the year, becoming the second senior executive to quit in the past few months.
  • Financial Times: Blackstone, the world’s largest allocator of capital to hedge funds, is preparing an overhaul of its $58 billion fund of hedge funds unit that will see it compete directly with the managers in which it now invests.
  • Financial Times: Samsung Electronics’ Chinese suppliers have continued to commit legal and safety violations that the South Korean technology company had vowed to eliminate by the end of 2012, it revealed on Monday.
  • Financial Times: Citic Group, the large Chinese investment conglomerate, is considering giving up its bank branches in the US at the same time as it undergoes a massive restructuring, according to several of its senior executives.
  • Financial Times: The activist investor Nelson Peltz has revealed a $1 billion stake in Bank of New York Mellon, firing the opening shot in a campaign for the custody bank to improve shareholder returns.
  • Financial Times: Discount retailer Poundworld has secured £26 million to fund up to 150 new stores over the next three years, as it plans to cash in on increasing bargain-hunting by consumers.
  • Financial Times: BAE Systems is restructuring part of its operations in Saudi Arabia to allow greater local participation as part of a government programme to increase the industrial base of the world’s largest oil producer.
  • Financial Times: Lego, the maker of colourful toy bricks beloved of generations of western children, will expand its footprint in the home of manga and Hello Kitty when Japan becomes the second Asian country to host a Legoland theme park in 2017.
  • Financial Times: Deals between National Grid and leading customers to voluntarily curb their demand will reduce the danger of unexpected power cuts over the next five years, according to energy industry regulator Ofgem.
  • Financial Times: Partners at Norman Foster’s architecture firm, which designed the famous Gherkin tower in the City of London, have agreed to buy back the minority holding held by UK-based private equity group 3i in their business.
  • Financial Times: Britain’s supermarket price war has cost McBride one-quarter of its domestic workforce, it said on Monday as it announced plans to cut 400 jobs in the UK.
  • Daily Mail: Plans to build Europe’s largest nuclear power station at Sellafield in Cumbria moved a step closer yesterday after Toshiba took a 60% stake in the £10 billion project.
  • Financial Times: Payday lenders will be forced to place ‘risk warnings’ on television adverts as part of a clampdown on lending practices that comes into effect tomorrow; from 1 July, lenders will also be banned from rolling over loans more than twice and will be forced to check potential customers can afford to take out debt before giving them loans.
  • Daily Express: BP is set for more legal battles over compensation payouts following the Gulf of Mexico disaster after asking a US judge to order firms to repay hundreds of millions of dollars.
  • The Guardian: The government must carry out an independent assessment of the ability of consumers to pay an extra £250 billion in household bills over the next 15 years to modernise Britain's ageing infrastructure, MPs have said.
  • The Guardian: The Luxembourg operations of Barclays, through which of much of the bank's controversial tax planning services are channelled, generated £1.4 billion of profits in 2013 - £100 million for each of the 14 people employed there.
  • The Guardian: Downing Street has dampened speculation that George Osborne, the chancellor, is planning to merge national insurance and income tax.
  • The Independent: The Government must change business rate rules with the vast majority of MPs in favour of a fundamental shake-up, according to the British Retail Consortium.
  • The Independent: A “yes” vote in the Scottish independence referendum will hurt UK business and job prospects, according to 89% of business executives polled by the recruitment firm Interim Partners.
  • The Daily Telegraph: Savers are expected to deposit more than £1 billion into “Super Isas” over the next 72 hours, with experts warning the flood of money may prompt cuts to interest rates, reducing savers’ incomes and undermining a key Conservative election strategy.
  • The Daily Telegraph: Goldman Sachs has issued a bullish upgrade to its UK economic growth forecast in a further vote of confidence for George Osborne's recover; analysts now predict that GDP will grow by 3.4% this year, compared to a previous forecast of 3%.

Share tips, comment and bids

  • Financial Times: Ineos has agreed to buy out rival German chemical group BASF’s 50% stake in its styrene plastics joint venture for €1.1 billion as it looks to expand the business in Asia and specialty products.
  • Financial Times: Investindustrial, the private equity fund led by Italian investor Andrea Bonomi, has launched a rival bid for Club Méditerranée with an offer that values the French holiday group’s equity at €790 million.
  • Financial Times: Healthscope, the Australian private hospital chain, will seek to raise up to A$2.6 billion (US$2.5 billion) from a stock market float next month, in the largest new listing in the country since 2010.
  • Financial Times: Old Mutual has stepped up plans for a listing of its US asset management operation that will potentially value the subsidiary of the Anglo-South African financial services group at more than $2 billion.
  • Financial Times: Philips is to merge its LED and automotive lighting businesses and create a standalone unit with sales of about €1.4 billion within the Dutch electronics and healthcare group.
  • Financial Times: Sibanye Gold, the biggest producer of South African gold, is pushing ahead with plans to move into the country’s platinum sector before the end of the year, with Anglo American Platinum’s mines likely acquisition targets.
  • Financial Times: Xinhua, China’s official news agency, is planning to raise Rmb1.5 billion ($242 million) in an initial public offering of its online operations, as the government mouthpiece seeks to gain market share in the country’s competitive, fast-growing online media sector.
  • Financial Times: Mecom Group is to be acquired by a European rival in a deal that draws a line under years of struggles for the media group that borrowed heavily to expand before the financial crisis; Belgian publisher De Persgroep has agreed to pay 155p a share - about £200 million in total - for Mecom, a 35% premium to the closing share price on Friday.
  • Financial Times: Henderson Global Investors announced plans to buy Geneva Capital Management on Monday in a $200 million deal that will strengthen the Anglo-Australian group’s business in the US.
  • Financial Times: French state-backed investor BPI France and China Development Bank have committed €100 million each to back a private equity fund targeting medium sized companies in France and China.
  • Financial Times (Lex): Xinhua: new China, new media?
  • Financial Times (Lex): Philips: LED Zeppelin.
  • Financial Times (Lex): Brewer M&A: coke problem.
  • Financial Times (Lex): Aereo: think local.
  • Financial Times (Lex): BNP Paribas: buy on the fact?

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