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Tuesday Papers: UK prices rise faster than wages

Tuesday Papers: UK prices rise faster than wages

Top stories

  • Financial Times: Credit Suisse pleaded guilty to an “extensive and wide-ranging conspiracy” to help US clients evade taxes and agreed to pay about $2.6 billion in fines as it became the first large global bank in two decades to admit to criminal charges.
  • The Independent: AstraZeneca lost £6.75 billion of its share price value yesterday as the City responded to its rejection of Pfizer’s £69 billion “final” takeover bid.
  • The Daily Telegraph: Prices in UK are rising faster than wages again tempering the claims of Bank of England governor that cost of living crisis is over.
  • The Guardian: The average asking price of a property in London has risen by £80,000 since the start of 2014, as sellers try to cash in on continuing demand from buyers, according to the property website Rightmove.
  • Financial Times: Investors and analysts have been quick to pick holes in Deutsche Bank’s new plan to boost its capital – questioning the amount being raised, as well as the German lender’s targets for return on equity.

Business and economics

  • Financial Times: The asset management industry is playing US regulators against their international counterparts and stirring national sentiment on Capitol Hill in an attempt to head off new regulation of its biggest firms; lobbyists are urging lawmakers to try to block new international rules to designate large asset managers as “systemically important”, while a similar review in the US remains in its infancy.
  • Financial Times: The UK’s biggest lenders have signed up to a new voluntary standards body intended to complement the regulator by drilling good behaviour into an industry beset by scandal.
  • Financial Times: The UK’s leading universities are due to spend more than £9 billion on new research facilities, accommodation and IT infrastructure during the next three years in a sign of the growing importance of education to the British economy.
  • Financial Times: Bentley will hire 141 workers at its factory in Crewe as the luxury carmaker increases production amid surge in British car output.
  • Financial Times: Discussions between Gazprom, Russia’s state-controlled gas company, and the Chinese government have dragged on for a decade, but are finally nearing completion amid the deterioration of Russia’s relations with the west over Ukraine.
  • Financial Times: Africa will receive its highest flow of foreign investment this year as the continent’s growth accelerates towards levels not seen since the 2008-09 crisis, according to the annual economic review of the region.
  • Financial Times: Government of Singapore Investment Corporation, one of the country’s two sovereign wealth funds, is looking for investments in Mexico, saying it sees attractive possibilities in the opening up of that country’s energy sector.
  • Financial Times: European regulators are seeking to clamp down on the sale of debt by banks to their own retail customers, amid fears savers do not realise the risks posed by such assets.
  • Financial Times: Ryanair on Monday reported an 8% fall in net income for 2013-14, its first earnings decline in five years, and issued cautious profit guidance for 2014-15.
  • Financial Times: The number of e-cigarette sellers in the UK will plunge from “hundreds” to fewer than 10 over the next four years, according to the head of one of Britain’s biggest e-cigarette groups.
  • Financial Times: Malaysia Airlines’ woes deepened on Monday when its shares fell more than 18% amid investor fears that the government may not be prepared to bail out the state-owned carrier and could be contemplating a painful restructuring instead.
  • Financial Times: Leighton Holdings, Australia’s biggest construction company, has faced down shareholder anger over “excessive” termination payments to two senior executives following a boardroom coup orchestrated by its largest shareholder.
  • Financial Times: Irish developer Ballymore is seeking a joint venture partner to finance London residential projects including City Island – an attempt to create a mini-Manhattan in the capital.
  • Financial Times: Germany’s two big utilities, Eon and RWE, have been cutting dividends and shutting down capacity in response to a slide in profits in conventional power generation; however, there is a glimmer of hope amid the gloom for investors as German politicians have begun to debate the idea that the government might share the burden of the country’s nuclear phase-out.
  • Financial Times: Spain will this week make a fresh attempt at selling Catalunya Banc, the lender it nationalised two years ago and that has since emerged as one of the most toxic legacies of the country’s recent financial crisis.
  • Financial Times: Qatar’s diplomat-investor Sheikh Hamad bin Jassim al-Thani has jumped back on to the global investment stage with two large transactions, marking the end of a quiet period for the dealmaker since he left public office last year; last month’s acquisition of Africa-focused independent producer Heritage Oil for £924 million has been followed by a €1.75 billion injection into Deutsche Bank.
  • Financial Times: Standard Chartered has hired Andy Halford, the former chief financial officer at Vodafone, to take over as its CFO in a move that surprised analysts because of his lack of banking or Asian experience.
  • Financial Times: Babcock, a key supplier to the UK Ministry of Defence, said a boom in outsourcing by Britain’s coalition government helped push full year pre-tax profits up 15%.
  • Financial Times: Mitie, the FTSE 250 outsourcer, further increased its market share in British government services with a £180 million, eight-year deal to run immigration centres near Heathrow for the Home Office.
  • Financial Times: Nostrum Oil & Gas has won approval for a premium listing in London that could see the Kazakhstan-based producer formerly known as Zhaikmunai promoted to the FTSE 250 index in September.
  • Financial Times: Asia Resource Minerals is shelving an idea to delist from the UK, saying it had not found sufficient consensus among its investors.
  • The Daily Telegraph: The family of William Hesketh Lever, founder of Lever Borthers, is in line for £715 million after selling historic stock rights to Unilever.
  • Daily Mail: Pre-tax profits of Cranswick were up 16% to £54.8 million, on revenues up 14% to £994.9 million boosted by Britons’ growing appetite for premium bacon.
  • Daily Mail: Alliance Boots’ expansion into the lucrative Latin American market is in jeopardy following a dispute over the ownership of a key Mexican chain it hopes to acquire.
  • Daily Express: Dixons Retail is pulling out of central Europe as it works on its merger with Carphone Warehouse.
  • The Guardian: Estate agency Savills has added to the alarm over Britain's property market by warning of a "housing crisis" stoked by a shortage of new homes.
  • The Guardian: Lonmin, a South African platinum miner, has lost a third of its annual production because of a strike over wages which its chief executive described as a "bleeding" that might lead to the company's death if not stopped in time.
  • The Guardian: Prudential directors have received a windfall of more than £15 million after selling substantial portions of their stakes in the insurer.
  • The Guardian: Royal Bank of Scotland has handed its new finance director almost £2 million in shares on his first day in the job at the bailed out bank; Ewen Stevenson was awarded 584,506 shares, which will be released to him over three years to buy him out of pay deals he left behind at his previous employer, Credit Suisse.
  • The Guardian: Bankers on both sides of the Atlantic have lost the chance to collect "jackpot" fees of £345 million following the collapse of US drugs giant Pfizer's £69 billionn bid for its British rival AstraZeneca.
  • The Guardian: Vince Cable has warned the economy is being destabilised by booming house prices and any sane person should worry about what is going to happen when interest rates rise as the economy returns to normal.
  • The Independent: More than $133 million was raised from crowdfunding – rewards and equity - in the first quarter of the year and 500 new projects are being launched daily on crowdfunding platforms around the world, according to a new report from the UK’s CrowdDataCentre.
  • The Independent: Springboard’s footfall figures for April, published in conjunction with the British Retail Consortium, showed that despite the Easter bank holiday weekend, footfall still dropped by 0.1% overall on a year ago, down on the 1.8% rise in March.
  • The Daily Telegraph: Marks & Spencer to announce third year of falling profits with underlying pre-tax profits for expected to fall 7.5% to £615 million - their lowest level since 2009.

Share tips, comment and bids

  • Financial Times: Game Digital, the video games chain that collapsed into administration just two years ago, has confirmed plans to launch the latest London retail listing in a move that would cap a swift turnround for the company.
  • Financial Times: Yahoo Japan has pulled out of a Y324 billion ($3.2 billion) deal to buy a mobile phone carrier from its own largest shareholder, the telecoms group SoftBank, after the plan met with scepticism from investors.
  • Financial Times: Stifel Financial is looking to expand into the UK wealth management market following the US financial services group’s deal to buy London broker Oriel Securities.
  • Financial Times: Google has bought Divide, a New York-based start-up that lets users securely separate their work and personal data on smartphones and tablets, effectively turning one device into two.
  • The Daily Telegraph: Wearable camera company, GoPro, plans to list on the Nasdaq.
  • Financial Times (Lex): AT&T / DirecTV: T for two.
  • Financial Times (Lex): AstraZeneca / Pfizer: the price was right.
  • Financial Times (Lex): Ryanair: happy feet.
  • Financial Times (Lex): Irish banks: Allied forces.
  • Financial Times (Lex): Indian equities: à la Modi.

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