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Tuesday Papers: HSBC ‘danger’ warning as staff avoid risk

Tuesday Papers: HSBC ‘danger’ warning as staff avoid risk

Top stories

  • Financial Times: HSBC’s chairman has warned of a “growing danger” that employees are becoming too risk-averse because they fear punishment for mistakes, the latest sign that banks are making a fresh push against regulation.
  • Financial Times: Hewlett-Packard levelled an accusation of fraud directly at former Autonomy chief executive Mike Lynch for the first time on Monday as it ratcheted up the war of words over the former UK software company.
  • The Guardian: Many of Britain's banks and building societies have discovered that some of the annual statements, arrears notices and other correspondence sent to customers holding some personal loans, credit and store cards, and hire purchase agreements did not comply with the Consumer Credit Act because they did not give all the information that people were entitled to by law.
  • The Daily Telegraph: Portugal’s rescue of Banco Santo Espirito has left taxpayers on the hook for large potential losses, sparing senior bondholders in the first serious test of the EU’s tougher rules for bank failures.
  • Financial Times: The Bank of England’s head of financial stability, Spencer Dale, has quit unexpectedly for a job at oil company BP, leaving a hole at the top of the central bank just as it starts to flex its powers to prevent financial crises.
  • Financial Times: Weir Group has fired Bank of America Merrill Lynch as one of its two lead corporate brokers after the investment bank quietly took on the same role for the FTSE 100 engineering group’s arch rival.
  • The Independent: UK housebuilding accelerated at its fastest pace for more than a decade in July; the Chartered Institute of Purchasing & Supply’s latest purchasing managers’ index- compiled by Markit - revealed a rise to 68 for residential construction, which is the highest since November 2003.

Business and economics

  • Financial Times: Despite the UK’s economic recovery, productivity growth is “still abysmal”, real wages are running below the rate of inflation, and gross domestic product per head is unlikely to return to pre-crisis levels until 2017, according to a leading economic think-tank.
  • Financial Times: Inheritance tax planning for all but the UK’s super-rich will become much harder under HM Revenue & Customs plans to curb the use of trusts, advisers say.
  • Financial Times: Britain is reviewing £8 billion worth of arms exports to Israel in the light of the country’s military campaign in Gaza.
  • Financial Times: Britain’s banks have stepped up opposition to the creation of an EU financial services chief, saying the move could fracture the single market and “harm the UK’s national interests”
  • Financial Times: Germany on Monday cancelled a contract to supply Russia with a €120 million combat simulation centre, amid an escalating row among European partners about arms sales to Moscow, including France’s €1.2 billion warship contract.
  • Financial Times: JKX Oil & Gas said it would be taking “operational and financial measures” to protect its interests after the Ukrainian government imposed emergency laws doubling the rate of tax on gas production in the country to 55%.
  • Financial Times: While HSBC is cutting costs elsewhere, Stuart Gulliver said on Monday that the bank spends $750 million-$800 million a year on its compliance and risk programme, an increase of $150 million-$200 million from last year and a further rise is expected next year.
  • Financial Times: The proposal from HSBC’s chairman that the deadline for British banks to separate their high-street and investment banking businesses be delayed pending a competition review suggests the bank is preparing for the worst.
  • Financial Times: Shares in China Everbright Limited jumped almost 15% on Monday after it became the latest state-owned company to announce a revamp of its ownership structure.
  • Financial Times: The chief executive of Senior is planning to retire after 17 years at the FTSE 250 engineering and manufacturing group.
  • Financial Times: Cross-border mergers and acquisitions look set to continue their recovery after deals completed in the first half of this year reached their highest level since the financial crisis; a total of 2,537 such deals, worth $753 billion, took place in the first six months of the year, according to a survey by Baker & McKenzie.
  • Daily Mail: The strong pound may be giving British holiday makers more spending power abroad this summer but it is causing a headache in boardrooms across the country; a raft of UK firms yesterday warned that the year-long sterling rally is hurting their performance - a complaint which is getting louder by the day.
  • Daily Mail: Money provided to smaller firms by alternative online funders rose from £318 million by last September to £852.5 million by June, according to finance firm Fleximize.
  • Daily Express: Motor insurer Esure will not hike premiums until early next year, despite an industry price war and winter storms leaving profits flat.
  • The Guardian: Brussels is considering scrapping the troika that supervises Greek reforms to allow Athens to pursue its own plan to bolster the economy in return for a drip-feed of debt relief, European officials have said.
  • The Guardian: Anger is growing over the return of the east coast mainline to private hands after it emerged that it had generated £1 billion for UK taxpayers since 2009.
  • The Independent: Tens of thousands of people with Fagor built-in cookers, fridges and other kitchen appliances are likely to see their warranties cancelled as the brand’s UK distributer faced liquidation on Monday night.
  • The Daily Telegraph: LinkedIn has been ordered to pay $6 million in unpaid wages and damages to staff; investigation found that the online business network was in violation of overtime and record-keeping rules.
  • The Daily Telegraph: Francois Hollande's cuts has left France trailing behind the UK, says Moody's as David Cameron's government is expected to get to grips with its debt burden much quicker than Hollande.
  • The Daily Telegraph: Ultra Electronics is hit by US defence budget delays; rows over agreeing US defence spending weighed on FTSE 250 defence and aerospace group Ultra Electronics' profits and revenue.

Share tips, comment and bids

  • Financial Times: The Co-operative Group has raised £249 million by selling its farms business to the Wellcome Trust, the charitable foundation, as the UK mutual continues to draw a line under one of the most turbulent periods in its corporate history.
  • Financial Times: Australia’s Treasury Wine Estates, the world’s largest listed winemaker, says it will engage in talks with KKR following the US private equity group’s second takeover bid for the business in four months.
  • Financial Times: Gables Residential, the landlord of almost 40,000 family homes, has been put up for sale by its private equity owners in a deal that would mark one of the largest sales of US residential property since the financial crisis.
  • Financial Times (Lex): Evercore / ISI: research & development.
  • Financial Times (Lex): Michael Kors: luxury of time.
  • Financial Times (Lex): China Everbright: still dark.
  • Financial Times (Lex): HSBC: solid state.
  • Financial Times (Lex): Espírito Santo: the BES of bail-ins?

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