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Tuesday Papers: Deutsche Bank losses test nerves

Tuesday Papers: Deutsche Bank losses test nerves

Top stories

  • Financial Times: Shareholder concern over Deutsche Bank’s multibillion-euro litigation risks has been heightened after the German lender was forced to reveal deep quarterly losses, partly triggered by higher legal provisions.
  • Financial Times: Anheuser-Busch InBev agreed to buy back South Korea’s Oriental Brewery for $5.8 billion including debt from Kohlberg Kravis Roberts in a deal that will consolidate the Belgian brewer’s position as the world’s largest by sales.
  • Financial Times: Royal Dutch Shell is to leave the Wheatstone gas project in Australia after selling its stakes to the Kuwait Foreign Petroleum Company for $1.14 billion to focus on larger investments in the country.
  • The Daily Telegraph: Co-operative Group has decided not to sale Co-op general insurance business following revised recapitalisation process at banking arm.
  • Daily Mail: The troubled Co-op Bank is heading towards a loss in the region of £1 billion when it announces its full-year results in March.
  • Financial Times: IBM is considering selling its x86 business in a deal that would mark a long-awaited exit from the low-end server market for the US technology company.
  • Financial Times: Wm Morrison has suspended its treasurer Paul Coyle after his arrest on suspicion of insider dealing ahead of the supermarket chain’s tie-up with Ocado, the online grocer.
  • The Independent: The controversial mining tycoon Beny Steinmetz has won what he claimed to be a major victory involving corruption allegations in the troubled west African state of Guinea.

Business and economics

  • The Daily Telegraph: US bank JP Morgan is suing Berliner Verkehrsbetriebe over "unfortunate" derivatives contract.
  • Daily Mail: Royal Mail has been thrust into another dispute over top pay – just as it emerged that the activist hedge fund, TCI, that was its largest private shareholder has landed a windfall from selling shares.
  • Financial Times: Wells Fargo has banned its employees from lending their own money through peer-to-peer loan platforms, in a sign of growing tensions between new “P2P” lenders and the largest US bank by market value.
  • Financial Times: PSA Peugeot Citroën’s board has approved an outline deal to raise cash by selling stakes to China’s Dongfeng and the French government, clearing the way for final negotiations with both parties over terms; the carmaker will hammer out an exact deal over the next few weeks to raise around €3 billion.
  • Financial Times: Denis O’Brien, one of Ireland’s richest businessmen, will launch a “massive push” this year and invest about $500 million to expand his global telecoms business into next-generation mobile and fixed line services.
  • Financial Times: UniCredit, Italy’s largest bank by assets, will announce on Wednesday that it has done a deal with Mariner Investment Group to offload some of the default risk on a €910 million portfolio of lending to energy and transport projects.
  • Financial Times: Deutsche Börse has called on German policy makers to do more to make Frankfurt Europe’s dominant centre for trading in China, further turning away from the Anglo-American capital markets it has targeted for the past decade.
  • Financial Times: Sales of euro-denominated corporate bonds from non-European companies have more than tripled since 2011, the height of the eurozone crisis, to reach the $132 billion mark in 2013, according to Dealogic data.
  • The Daily Telegraph: Ireland's five-year borrowing costs have fallen to their lowest in the 92-year history of the state after Moody's upgrade.
  • Financial Times: Global reinsurers are facing potential credit rating downgrades after Standard & Poor’s warned the industry had “nowhere to hide” from mounting competition.
  • Financial Times: The Financial Reporting Council, the accounting watchdog, has joined a long list of investigators examining the near collapse of the Co-operative Bank as it launched a review into KPMG’s auditing of the lender’s accounts.
  • Financial Times: Profits at China’s listed banks are poised to grow by less than 10% in 2014, for the first time since at least 2005, in the face of a slowing economy, financial reform and the challenge from internet newcomers, according to analysts.
  • Financial Times: KKR has agreed to inject €100 million into Italian coffee vending machine operator Gruppo Argenta mostly in the form of loans to help the company reduce its debt load and get cash for expansion.
  • Daily Mail: Vodafone could begin offering TV, landline phones and internet to households in a deal with Sky as early as this year.
  • The Daily Telegraph: 61-year-old retailer Laura Ashley issues 1pence-a-share 'bonus' payment to shareholders for "continued support".
  • The Guardian: HR Owen, the luxury car dealer, said strong sales at the end of 2013 helped push annual profits ahead of its own expectations.

Share tips, comment and bids

  • Financial Times: Osisko Mining’s board has turned down Goldcorp’s C$2.6 billion hostile acquisition bid as inadequate and recommended investors should reject the proposal.
  • Financial Times: Ono, the Spanish TV, broadband and telecoms provider, is preparing for a flotation on the Madrid stock exchange that could value the group at as much as €7 billion, including debt.
  • The Guardian: The casual fashion chain Fat Face is set for a stock market flotation in the first half of this year after appointing two advisers.
  • Financial Times: Bankers are preparing to list a swelling number of high street retailers on the London Stock Exchange as their private equity backers rush to cash in on a recovery in the IPO market.
  • The Guardian (Comment): Economists are in danger of regarding time spent making love as an 'opportunity cost' rather than a benefit.
  • The Guardian (Comment): The richest 85 people in the world have as much wealth as the poorest 3.5 billion. That should be a wake-up call to the deepest sleepers.
  • The Daily Telegraph (Comment): Much of the conversation at Davos will focus on redefining capitalism, what it stands for and how it can be renewed.
  • Financial Times (Lex): AB InBev: Why sell a Korean brewer then buy it back at three times the price almost five years later? It’s a fizzy tale.
  • Financial Times (Lex): Turkish Airlines: Middle East and Gulf airlines are capitalising on their global crossroads base – and that is helping Turkish Airlines’ shares to take off
  • Financial Times (Lex): Petrobras: Emerging market debt investors often reassure themselves by lending to companies with dollar revenue. This thinking is too crude, alas
  • Financial Times (Lex): Deutsche Bank: Cost cuts are only keeping pace with revenue declines at the German bank as it waits for the blessed season of revenue growth to come

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