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Tuesday Papers: François Hollande purges government after leftwing revolt

Tuesday Papers: François Hollande purges government after leftwing revolt

Top stories

  • Financial Times: François Hollande has purged his embattled Socialist government of leftwingers opposed to EU austerity after a revolt led by Arnaud Montebourg, the flamboyant economy minister.
  • The Daily Telegraph: The eurozone has moved closer to adopting further radical measures to ward off a second recession and a spiral of deflation right after its two greatest economies fell deeper into trouble yesterday.
  • The Guardian: Consumer-focused firms such as hotels, bars and travel firms experienced their weakest expansion in a year, according to the CBI, with a balance of 25% more firms saying activity was up on last month compared with those recording a fall.
  • Financial Times: Twitter is expanding its advertising system across Europe, more than doubling the number of countries it is available in across the continent, as the microblogging service strives to reach profitability.
  • The Independent: The Co-operative Bank’s boss has insisted the under-fire lender has shown good progress in addressing its problems as it reported a £75.8 million first half pre-tax loss.
  • The Daily Telegraph: Amazon bought video-game streaming site Twitch for $970 million fending off tech rivals such as Google and Yahoo who had previously approached the firm.
  • The Guardian: A majority of economists believe the Federal Reserve is doing the right things to help repair the US economy, according to a survey released on Monday by the National Association of Business Economists (NABE).
  • Financial Times: Alex Salmond gave the campaign for Scottish independence a morale boost with a strong performance in a crucial televised campaign where he fended off doubts about his currency plans to tell voters: “This is our time, our moment: let us do it now.”
  • Financial Times: Shares in Burger King and Tim Hortons soared on Monday after the companies revealed they were working on a merger that would create a powerhouse in the fast-food industry.

Business and economics

  • Financial Times: Manufacturers are paying their workers more in a tentative sign that wage growth – a missing piece of the UK’s recovery – is starting to pick up in some parts of the economy.
  • Financial Times: Coal mining is poised for a mini-revival in the UK with Australian investors financing projects close to the border of England and Scotland.
  • Financial Times: A Nobel Prize-winning economist has endorsed Alex Salmond’s currency plans for an independent Scotland just hours before a potentially crucial debate between the Scottish first minister and the leader of the pro-union campaign.
  • Financial Times: In the year 2621, in the northwestern province of Gyeonggi-do, the last South Korean will enter the world – according to an apocalyptic parliamentary report reflecting national anxiety about one of the world’s lowest birth rates.
  • Financial Times: Israel’s central bank cut its benchmark interest rate to the lowest level ever, in an effort to recharge an economy slowed by the war in the Gaza Strip, which is now entering its eighth week.
  • Financial Times: Political uncertainty surrounding next year’s UK general election is at the top of the corporate agenda, according to David Sproul, chief executive of Deloitte UK, as the professional services company reported lower than expected growth in its latest financial year.
  • Financial Times: Customers at Tesco-owned convenience stores will soon find their smartphones offering them bespoke discounts, in the first UK-wide rollout of Apple’s beacon technology.
  • Financial Times: Already battling tough mining conditions and a price slump, a clutch of west Africa iron ore miners are being plunged further into difficulties by the outbreak of the Ebola virus in the region; the combined effect of the health emergency and the depressed iron ore price makes a grim backdrop for UK miners, including London Mining and African Minerals, to solve acute financing problems.
  • Financial Times: Cyber criminals have targeted gaming companies including Sony’s PlayStation Network, Microsoft’s Xbox and Riot Games’ the League of Legends in one of the largest attempts to disrupt online gaming services in recent history.
  • Financial Times: Peru is set to become the world’s second-largest copper miner, behind neighbouring Chile, thanks to a $20 billion pipeline of Chinese mining projects, according to senior officials in Lima.
  • Financial Times: Within the space of three weeks, Sprint and T-Mobile US have gone from potential allies to enemies in a price war that threatens to destabilise the US telecoms market; having abandoned its takeover pursuit of T-Mobile US in early August over regulatory concerns, Sprint started to put a new pricing plan into action last week.
  • Financial Times: BOC Aviation, the aircraft leasing subsidiary of Bank of China, has made its biggest single order for aircraft yet with the purchase of 82 Boeing jets for $8.8 billion, half of which will be used by customers in the booming market for Asian air travel.
  • Financial Times: Lufthansa said it was keen to negotiate further with unions after the breakdown of pay discussions triggered the threat of fresh strikes that could cost the airline tens of millions of euros.
  • Financial Times: René Obermann, the former chief executive officer of Deutsche Telekom and current chief of Dutch cable company Ziggo, is to join US-based Warburg Pincus as a partner, to help find private equity deals in the telecoms sector and in Germany.
  • Financial Times: One of the largest companies investing in the UK has called for reform of Britain’s business rates, arguing they are deterring investment and undermining efforts to rebalance the economy towards manufacturing; Tata Steel, India’s largest private sector steelmaker, said business rates for large manufacturers in the UK were five to 10 times higher than the equivalent taxes in continental Europe.
  • Financial Times: Mergers in the consumer products industry have rocketed this year as competitive pressures, changing consumer habits and a benign environment for dealmaking drive companies to expand, shrink or redefine the scope of their activities.
  • Financial Times: More than 200 coal mining licences awarded to private industrial groups have been declared illegal by India’s Supreme Court; the ruling on Monday plunged the country’s battered resources sector into fresh uncertainty and caused sharp falls in the share prices of companies such as Tata Steel and Hindalco.
  • Financial Times: Smartphone maker Xiaomi has become one of the biggest Chinese brands to be publicly criticised by the state television station CCTV, after a report on Sunday night attacked the quality of its charging units.
  • Financial Times: A record £18.9 billion was borrowed from asset-based lenders in the three months to the end of June, according to figures compiled by the sector’s trade body, highlighting the problems smaller businesses face in obtaining bank credit.
  • Financial Times: Owners of commercial properties in the UK have lost £100 million of tax reliefs in the four months to the end of July after an obscure change to the tax regime, according to research by advisers.
  • Daily Mail: Mining and commodities giant Glencore has completed the sale of its Frieda River copper, gold and silver mines agreed in October to Australian operator PanAust; Glencore is selling off a number of projects it acquired in its takeover of mining group Xstrata.
  • Daily Mail: US drugs giant Pfizer can today renew its ambitions to buy AstraZeneca in a £69 billion mega-deal; but today a three-month waiting period ends, allowing the group to have another stab at the deal. Under UK takeover rules, Pfizer can make one take-it-or-leave-it offer in private to Astra’s board.
  • Daily Mail: Hewlett Packard is suing Deloitte over its auditing of Autonomy’s accounts in the two years running up to its acquisition; the computer giant bought the British software group for £7.1billion in 2011, but subsequently accused the former directors of £3billion of fraud.
  • Daily Express: The world's second biggest private tea producer, Camellia, is brewing up a move from the main market to Aim next month; Camellia, whose businesses span agriculture and horticulture, engineering, food storage and distribution, as well as Duncan Lawrie private banking, will be one of the largest companies on the junior market with an estimated value of £265million.
  • Daily Express: The World Cup should have given advertising group WPP a lift this summer, though currency fluctuations may have dragged on profits; half-year results today are forecast to show profits nudging ahead 1.5% to £531milion.
  • Daily Express: Shares in the US hit an all-time high yesterday on hopes that central banks will keep the cost of borrowing low to boost global economic growth.
  • The Guardian: Qantas and Virgin passengers will be able to use smartphones, tablets and laptops in flight mode throughout their flights, after the airlines revised their electronic device policies.
  • The Guardian: Platinum producer Lonmin aims to cut about 5,700 jobs, 21% of its South African workforce, as part of a drive to increase profits after a five-month wage strike this year.
  • The Independent: Salaries advertised online have registered their first annual increase since the global financial crisis, in a finding that will bolster hopes wages for UK workers might finally be increasing; in July average advertised remuneration was £33,873, 0.9% higher than the same month in 2013, according to the jobs search website Adzuna.
  • The Independent: Tesco’s incoming chief executive is facing calls from a leading industry analyst to break the supermarket into three parts to help the struggling retailer turn its fortunes around.
  • The Daily Telegraph: UK richest man, Gopichand Hinduja, said the UK should give India preferential treatment ahead of Nick Clegg's arrival in New Delhi.

Share tips, comment and bids

  • The Daily Express (Share hunter): Upbeat Pfizer looks like a healthy purchase.
  • The Daily Express: Camellia planning £265 million switch to Aim; the world's second biggest private tea producer is brewing up a move from the main market to Aim next month.
  • Financial Times: MBK Partners, the South Korean private equity group, will sell its 60% of China Network Systems to the Wei family – best known for its control of Tingyi, the Hong Kong-listed noodle-making group – for at least $2.4 billion including debt, according to people familiar with the matter.
  • The Guardian: The multibillion-dollar consolidation of the global pharmaceutical sector has seen another blockbuster deal after Switzerland's Roche agreed to buy US biotech company InterMune for $8.3 billion (£5 billion).
  • Financial Times (Lex): Burger King: debt of gratitude.
  • Financial Times (Lex): Cyber attacks: banking on safety.
  • Financial Times (Lex): BYD: lucky for some.
  • Financial Times (Lex): Boutique research: strong buy.
  • Financial Times (Lex): Roche: bets on discovery.

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