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Tuesday Papers: Eurozone risks falling into deflation, IMF warns

Tuesday Papers: Eurozone risks falling into deflation, IMF warns

Top stories

  • The Guardian: The eurozone recovery is weak, its financial markets too fragmented, and the region risks falling into deflation, the International Monetary Fund has warned, urging the members to shore up the single currency bloc, including repairing bank balance sheets and stepping up reforms to boost employment.
  • The Independent: A £31 billion takeover of the London-listed drug company Shire by US rival AbbVie came a step closer on Monday, after Shire's board announced it would back the deal despite concerns over its controversial tax structure.
  • Financial Times: World leaders must make water scarcity a bigger priority than climate change because the problem is far more urgent than global warming, the chairman of one of the world’s biggest food companies has warned.
  • Financial Times: William Hague has stepped down as foreign secretary, paving the way for a far-reaching cabinet reshuffle on Tuesday as David Cameron moves to bring more women and younger faces into his top team.
  • The Daily Telegraph: Sterling can fall 10% on independent Scotland leaving the rest of the UK more exposed to financial risks and delay a decision on increasing interest rates beyond the general election.
  • Financial Times: Quindell has sought to counter criticism about its business model, raising targets for profitability and reassuring investors that there was “no need to raise further funds”.
  • Financial Times: Citigroup investors have looked past the bank’s $7 billion settlement of a US government probe into the sale of mortgage-backed securities, even as the penalty wiped out almost all its second-quarter profits.
  • The Guardian: Chinese prosecutors have formally indicted a British-US couple on the charge of "illegally obtaining private information on Chinese citizens", one year after they were detained in connection with an increasingly murky bribery case against the British drugmaker GlaxoSmithKline.
  • The Guardian: The number of customers complaining to the independent ombudsman about their energy bills has soared with more people making official complaints in the first six months of this year than the whole of last year put together.

Business and economics

  • Financial Times: Pensioners and those on the verge of retirement have fared better than all working age adults since the financial crisis, according to research which highlights a deepening generational divide.
  • Financial Times: Teva is facing a fresh confrontation with shareholders after an activist investor, Benny Landa, accused the drugmaker of reneging on commitments to improve its management structure and corporate governance.
  • Financial Times: Oil companies have welcomed the UK government’s announcement on Monday that it is reviewing the North Sea oil tax regime, amid concerns the fiscal burden is threatening the sector’s long-term future.
  • Financial Times: The government has dropped plans to privatise the Land Registry after heated rows between the Tories and Liberal Democrats in the wake of the Royal Mail sell-off.
  • Financial Times: Britain’s broadband is not good enough for small businesses, according to campaigners who have called for the government to adopt more ambitious targets for fast internet services.
  • Financial Times: UK retail sales weakened unexpectedly in June, fuelling suspicions that the economy may be growing at a slower pace than at the start of the year.
  • Financial Times: Two of Hong Kong’s leading democracy activists have accused the UK government of turning its back on the former British colony as Beijing threatens to limit its freedoms.
  • Financial Times: Since the start of 2014 Europe’s real estate market has seen the biggest flurry of flotation activity in eight years, with €4.6 billion worth of companies going public.
  • Financial Times: Airbus on Monday sought to calm fears of a damaging price war with Boeing after unveiling plans to attack the US group’s dominance of the long-range passenger jet market.
  • Financial Times: The newly appointed chairman of Wonga, Andy Haste, has moved to clean up the business, dropping advertising that might encourage young borrowers to take out payday loans and promising to tighten lending criteria.
  • Financial Times: Manchester United have signed a record shirt deal after landing a £750 million tie-up with German sportswear group Adidas.
  • Financial Times: Samsung Electronics has stopped using a Chinese supplier accused of hiring child workers, after finding evidence to suggest allegations about the company were accurate.
  • Financial Times: Anglo American Platinum, the world’s top producer of the precious metal, warned on Monday that its earnings for the first half of the year could be virtually wiped out as it counts the cost of a crippling five-month strike.
  • Financial Times: Sotheby’s has partnered with eBay in a bid to add another distribution channel for its live auctions, saying it wants to broaden its reach after experiencing a surge in sales activity on its own online platform.
  • Financial Times: Insurers are turning down almost nine in 10 claims from workers seeking compensation for hearing problems as they try to prevent deafness becoming the industry’s new whiplash.
  • Financial Times: The outgoing chairman of the Co-operative Bank, Richard Pym, is to take on a new challenge in the banking sector at the helm of Allied Irish Banks, one of the lenders that brought Ireland to the brink of bankruptcy during the financial crisis.
  • Financial Times: Pension deals for FTSE 100 company executives are becoming more generous than those of their FTSE 250 peers – widening the gap in retirement incomes paid by large and medium-sized businesses.
  • Financial Times: Britain’s Serious Fraud Office has launched an investigation into Sweett Group, following allegations that a former member of staff at the UK-listed building consultant had been involved in bribery over a contract in the Middle East.
  • Financial Times: UK-based recruitment group SThree will significantly increase its presence in the US, with the ease of doing business there as well as the maturity of the market as the factors behind its plans.
  • Financial Times: The ongoing saga at Portugal’s Banco Espírito Santo is a reminder of several facts: that banks in the eurozone periphery are still fragile; that investor sentiment toward them can still be volatile; and that taxpayer bailouts of troubled banks are no longer palatable for governments.
  • Daily Mail: Wine Rack and Bargain Booze owner Conviviality Retail saw profits fall to £4.8 million from £6.5 million in maiden annual results hit by one-off costs from its float and shutting stores.
  • Daily Mail: Fans of investing star Neil Woodford were so eager to find the identity of the stocks in his new income fund that they crashed his website this morning after the holdings were published.
  • Daily Mail: Sportswear retailer Sports Direct is to expand into the Australian and New Zealand markets for the first time after signing a partnership deal with online discount retailer MySale, which recently listed in London.
  • Daily Express: A UK hi-fi maker, dCS, is celebrating its 25th anniversary on Wednesday by unveiling its latest cutting-edge product, costing £67,000.
  • Daily Express: Easyjet has chosen US-French joint venture CFM International to provide the engines to power its renewed fleet of Airbus aircraft.
  • The Guardian: Shanghai looks set to become the headquarters of a development bank being launched by the Brics – Brazil, Russia, India, China and South Africa – despite fears by some members of the group that China could hijack the bank to serve its interests.
  • The Guardian: Volkswagen AG said on Monday it would invest about $900 million to build a mid-sized SUV at its US plant in Tennessee starting in late 2016, nearly doubling the factory's work force.
  • The Guardian: The squeeze on British households will return to centre stage this week as official figures confirm a buoyant jobs market is failing to deliver pay rises for most workers.
  • The Independent: Construction companies at the heart of the blacklisting scandal that saw thousands of workers secretly barred from building jobs are offering compensation “on the cheap”, MPs will be told today.
  • The Independent: De Beers, which first marketed diamonds for brides in the 1940s, plans to bring its Forevermark Diamond brand to the UK for the first time and has signed a licensing agreement with Crossworks Manufacturing who will find jewellers across the country.
  • The Independent: The TUC will today seek to send a shot across the bows of hawks on the Bank of England’s Monetary Policy Committee by warning that unemployment is still too high to contemplate a rise in interest rates.
  • The Daily Telegraph: Number of shares traded in Barclays' LX have fallen by more than a third after the bank was accused of giving an unfair edge to high-speed traders.

Share tips, comment and bids

  • Financial Times: US pharmaceuticals group Mylan has agreed to pay $5.3 billion for the generic drugs business of Abbott Laboratories, in another sign of the deal mania sweeping the healthcare sector.
  • Financial Times: Wm Morrison has finally ended its ill-fated foray into baby and toddler goods with the sale of its Kiddicare business to Endless, the private equity group specialising in turnround situations, for a nominal £2 million.
  • Financial Times: Lindt & Sprüngli has agreed to buy a smaller US rival, Russell Stover, in a deal that will bolster the Swiss chocolate maker’s presence in the fast-growing American market.
  • Financial Times (Lex): Pharma M&A: mean inversion.
  • Financial Times (Lex): IBM: the end of silicon.
  • Financial Times (Lex): Citigroup: silver lining.
  • Financial Times (Lex): Lindt: wrapped chocolate.
  • Financial Times (Lex): Whiting / Kodiak: Bakken black?

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