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Tuesday Papers: Icesave dispute resurrected in court

Tuesday Papers: Icesave dispute resurrected in court

Top stories

  • Financial Times: British and Dutch authorities have reignited the controversial dispute over the collapse of online lender Icesave at the height of the financial crisis in 2008 by filing a lawsuit for up to £5.6 billion against Iceland’s bank guarantee fund.
  • Financial Times: Barclays said pre-tax profit - adjusted for some exceptional items - fell by one-quarter to £5.2 billion in 2013; that was well below the £7 billion for 2012 and the consensus of market forecasts of £5.41 billion collated by Barclays.
  • Financial Times: The US justice department reached a secretive, backroom deal when it agreed to a landmark $13 billion settlement with JP Morgan Chase to resolve allegations that the bank mis-sold mortgage securities, according to a lawsuit filed on Monday.
  • The Independent: Energy Secretary Ed Davey has called for regulators to investigate profits being made by the 'Big Six' energy companies through supplying gas.
  • Financial Times: Carl Icahn has conceded defeat in his attempt to force Apple to return a much greater chunk of its $160 billion cash pile to shareholders after the shareholder advisory firm ISS recommended that investors vote against activist investor’s proposal.
  • Financial Times: Two Hong Kong-based bankers at UBS – Joseph Chee and Sharlyn Wu - have been suspended over the appointment of Joyce Wei, a well-connected Chinese banker, underlining the sensitivity over a US inquiry into the practice of hiring the offspring of China’s political elite to win business.
  • The Independent: Mel Morris, a Midlands entrepreneur, stands to pocket £350 million when Candy Crush-owner King floats in the US later this year, it has emerged.

Business and economics

  • Financial Times: Janet Yellen’s first testimony as chairwoman of the US Federal Reserve is a crucial chance to stamp her authority on her new role, just as a research paper from the San Francisco Fed highlighted the extent of her challenge with forward guidance about monetary policy.
  • The Daily Telegraph: Banks in the UK will be benchmarked against one another other to track their performance, aimed at restoring trust in the financial sector.
  • The Guardian: The debate over how long it will take before disposable incomes start rising again in the UK has been stoked further after the Resolution Foundation, a respected thinktank, argued that the average family will be forced to wait until next year.
  • Financial Times: Bitcoin prices yo-yoed after one of the world’s biggest Bitcoin exchanges, Japan’s Mt Gox, said it had suspended withdrawals because of a software flaw that would allow people trading the virtual currency to defraud exchanges.
  • Daily Mail: Ross McEwan, the new boss of Royal Bank of Scotland, has said the tax payer owned lender needs to change its behaviour ‘at every level’ to restore trust, and that it faces a hard road to recovery.
  • Financial Times: One of Russia’s largest independent financial groups, Otkritie, has won $150 million in damages after a UK High Court judge found it was the victim of a “cunning and well-orchestrated fraud” committed by former employees.
  • The Independent: Bloomberg’s worldwide financial markets revenues actually grew from $7.9 billion to $8.2 billion last year while Thomson Reuters fell from $7.5 billion to $7 billion.
  • Financial Times: Warren Buffett-backed Chinese carmaker BYD will launch London’s first ever all-electric taxi fleet on Tuesday, pulling ahead of global rivals such as Nissan in the race to roll out zero emission cabs by 2018.
  • The Guardian: Profits have continued to boom at the resurgent Jaguar Land Rover, with the British car manufacturer reporting third quarter profits of £842 million - more than double the same period in 2012.
  • Financial Times: More than a century of car manufacturing in Australia is poised to end following a decision by Toyota Motor to cease making cars in the country by the end of 2017.
  • Financial Times: Shares in L’Oréal climbed 4.5% to €129 on Monday as speculation grew that the world’s largest cosmetics group by sales was moving towards the purchase of the stake in the company owned by Nestlé.
  • Financial Times: FilmOn, the controversial start-up from Greek billionaire Alki David, is raising the stakes in the battle over the future of television with a new service that lets viewers remotely watch local television broadcasts.
  • The Independent: Facebook may soon be getting its chequebook out for a UK start-up after a leading executive said it was looking at acquiring talent to beef up its mobile expertise.
  • The Daily Telegraph: Buoyed by growing international success that's seen turnover double in three years, Vitsoe is raising a £5 million bond that's novel because it is only for existing customers.
  • Financial Times: The US has intensified a trade row with India over its national solar programme by launching a new challenge and accusing New Delhi of doing little in response to its previous criticism on use of India-made solar products.
  • Financial Times: US oil continued its recent strong run, climbing above $100 a barrel on Monday and hitting its highest level so far in 2014.
  • Daily Mail: British Gas owner Centrica suffered a shares fall after Energy Secretary Ed Davey called for radical reform of the energy supply market.
  • Financial Times: Serco has won its first contract with the British government since a ban on it bidding for public sector work was lifted 10 days ago.
  • Financial Times: McDonald's shares slipped just over 1% by the close of trading to $94.85 on Monday as the world’s largest restaurant chain said same-store sales in the US fell 3.3% in January from a year earlier as a cold snap and extreme winter storms kept consumers out of its stores.
  • Daily Mail: Insurer Catlin enjoyed a 27% rise in pre-tax profit to £263 million after a year in which it wrote more premiums and paid out less in disaster claims.
  • Financial Times: West Ham United will sell its Boleyn ground in east London to Galliard Homes in a deal to turn the stadium into a residential and retail complex.
  • Financial Times: BP is backing a global study into the challenges lesbian, gay, bisexual and transgender employees face at multinationals, seven years after Lord Browne, who hid his homosexuality for decades, stepped down as the oil company’s chief executive.

Share tips, comment and bids

  • Financial Times: Virgin America, the US carrier launched by billionaire entrepreneur Sir Richard Branson, is closing in on an initial public offering after recording its first profits since it was founded 10 years ago.
  • Financial Times: WH Group, the Sino-US pork group formerly known as Shuanghui International, has handed roles to a total of 17 banks in its upcoming share sale, which could raise more than $6 billion and be the biggest deal in Hong Kong since 2010.
  • Financial Times: Alibaba has made an unsolicited bid to take over AutoNavi, China’s most successful map app, of which it already owns nearly a third, in an all-cash deal that values the company at $1.6 billion.
  • Financial Times: Cabot Credit Management, controlled by US debt recovery group Encore and New York-based buyout house JC Flowers, is acquiring Marlin Financial and its £2 billion worth of loans for £295 million including debt.
  • The Guardian (Comment): This is no longer north v south: it's the rest of the country versus a small elite in London.
  • The Guardian (Comment): To stop the property market from overheating, the UK must end tax incentives for buyers, improve tenants' rights and make better use of our stock.
  • The Daily Telegraph (Comment): The 'thunderbolt' ruling on eurozone rescue policies by Germany's top court marks a serious escalation of Europe's governance crisis.
  • Daily Mail (Comment – Alex Brummer): We must take at face value the reasoning behind Barclays’ decision to release details of its 2013 profits 24-hours early.
  • Financial Times (Lex): C&I loans: US banks are growing business loan books – but only at the cost of lower margins.
  • Financial Times (Lex): Barclays: Banks need to be wary of partial early releases of results.
  • Financial Times (Lex): Centrica: The energy group’s structure is looking harder to sustain.
  • Financial Times (Lex): Insurers: Should Lloyd’s insurers invest in growth or return it to shareholders?

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