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Tuesday Papers: Labour to take on outsourcing groups

Tuesday Papers: Labour to take on outsourcing groups

Top stories

  • Financial Times: Labour will mount an assault on big outsourcing companies if it wins the election, reducing their role in delivering the government’s back-to-work programme and exploring a plan to force them to pay all workers above the minimum wage in exchange for Whitehall contracts.
  • The Daily Telegraph: Britain's biggest lenders expect mortgage approvals to “fall significantly” in the coming quarter as banks reduce risky lending, according to a Bank of England survey.
  • The Guardian: The US manufacturing sector grew faster than expected in June reaching levels unseen in four years, according to a key industry report released on Monday.
  • Financial Times: France has sought backing from its European partners as it seeks to limit US punishment of BNP Paribas for breaking US sanctions, saying “disproportionate” action against its biggest bank could pose a systemic risk to the sector.
  • Financial Times: A South African miners’ strike that has crippled the world’s top platinum producers for more than five months appeared at an end on Monday as a union leader said the dispute was “officially over”.
  • Financial Times: Shire has made clear it is open to a takeover at the right price while insisting that the £27 billion approach from AbbVie of the US falls far short of an acceptable offer.
  • The Guardian: Asos is launching a massive summer sale as it seeks to woo back customers affected by the fire in its main warehouse at the weekend.
  • The Independent: The shares of roadside assistance group, AA, that was valued at £1.4 billion as it joined the London Stock Exchange, completing one of the most anticipated flotations in recent years, slumped 7.2% below the 250p offer price.

Business and economics

  • Financial Times: Tony Blair is looking to open an office in Abu Dhabi, the increasingly assertive oil-rich emirate, in an apparent bid to expand his role as a behind-the-scenes business and political broker in the Middle East.
  • Financial Times: The US Congress is struggling to reach a deal on funding for America’s highways and bridges, jeopardising thousands of infrastructure projects and construction jobs across the country over the next few months, as an increasingly tense political brawl unfolds.
  • Financial Times: China has signalled it will resist calls for aggressive measures to prop up its flagging property market, even as house prices continue to drop.
  • Financial Times: The US Supreme Court has affirmed the US environmental regulator’s authority to control greenhouse gas emissions from power plants and industry, but put limits on its ability to require pollution permits from small emitters.
  • Financial Times: The new owner of PokerStars, who bought the world’s biggest online poker website this month for $4.9 billion, is mounting a forceful campaign against opponents seeking to keep the company out of the growing US online gambling market.
  • Financial Times: About one in five jobs at Partnership Assurance is set to go in the latest round of cuts in the UK pensions sector following George Osborne’s far-reaching retirement overhaul.
  • Financial Times: The London Metal Exchange has decided to keep its open-outcry trading floor - the last in Europe and one of the few remaining in the world - beyond 2015.
  • Financial Times: Japanese carmakers have expanded recalls begun last year on fresh fears of an airbag defect, taking the total number of cars called back over the issue to more than six million in the past two years.
  • Financial Times: The shrinking banking sector is creating a “major opportunity” for asset managers to step into the lending breach, but concern is mounting over their “shadow bank” operations and rising systemic importance.
  • Financial Times: Airbus is to get a second chance to sell its new A350 aircraft to Emirates Airline after the fast-growing Gulf carrier revealed it would take a fresh look at the case for buying the long-range passenger jet, in a head-to-head contest with Boeing’s 787 Dreamliner.
  • Financial Times: Naspers’ shares fell 4.6% on Monday after it said that a multibillion rand expansion of its ecommerce and television businesses had limited earnings growth.
  • Financial Times: Users of a leading Chinese betting site found their efforts to gamble on World Cup games thwarted on Monday amid a spat between the country’s two largest internet groups over who was to blame for the outage of an online payments engine.
  • Financial Times: Two companies, Pegatron Corp and Foxconn that assemble Apple’s iPhones and iPads are on a hiring spree, a signal that orders from the Cupertino-based group are ramping up ahead of the launch of a new device.
  • Financial Times: Yo, the app that only allows users to send the message “Yo”, passed 1 million downloads despite being hacked, although its rate of growth appears to be slowing.
  • Financial Times: Short sellers are seeking to take advantage of a sharp decline in the fortunes of online retailer Asos after six months in which it suffered two profit warnings and a fire at its main depot.
  • Financial Times: The government body that manages taxpayer stakes in bailed-out banks has appointed a former Barclays investment banker Jitesh Gadhia to its board, as part of a broader reshuffle ahead of its Lloyds and Royal Bank of Scotland share sales.
  • Daily Mail: Buy-to-let landlords expect their property investments will contribute almost £20,000-a-year towards their incomes in retirement, a study has found.
  • Daily Mail: The debate over the shape and direction of Britain’s economic recovery becoming the subject of a fierce debate as economists and Bank of England policymakers appeared to have drawn battle lines over the timing of interest rate rises this weekend.
  • Daily Express: Virgin Atlantic is set to take to the skies with its new £2.9 billion fleet of Boeing Dreamliners this autumn.
  • Daily Express: BAE Systems has won a £70 million deal to service the Royal Navy’s Type 45 destroyers.
  • The Guardian: Fighting climate change would help grow the world economy, according to the World Bank, adding up to $2.6 trillion (£1.5 trillion) a year to global GDP in the coming decades.
  • The Guardian: Argentina's government has hit back at a group of creditors that could force the beleagured country into bankruptcy, saying in an advert published in newspapers across the globe that it would fight their court actions.
  • The Guardian: Eight major grocers have agreed to put a time limit on forensic investigations of suppliers' accounts that they use to search for money they might be owed.
  • The Guardian: Philip Clarke's turnaround of Tesco was dealt a fresh blow on Monday when Fitch cut its credit rating on the supermarket, citing trouble in store both at home and abroad.
  • The Independent: Credit unions will be handed £4 million as part of a four-year plan to be revealed by the Lloyds Banking Group.
  • The Independent: Government has been accused in Parliament of “accepting money tainted with blood”, after agreeing a deal that will allow Chinese firms to design, own and run British nuclear power stations.
  • The Independent: The City’s dramatic revival means inner London is now the only part of the UK to have returned to pre-recession levels of job creation; a TUC report to be published reveals a two-speed recovery in Britain’s economy with the capital booming while other parts of the country continue to struggle.
  • The Daily Telegraph: Britain’s nuclear clean-up bill has soared to £110 billion as spiralling costs at Sellafield site in Cumbria contribute to £6.6 billion increase in bill for tackling Britain's nuclear waste.
  • The Daily Telegraph: France and Germany blamed to be 'dragging down' eurozone as these 'core' economies of Europe are holding back the rest of the eurozone, where growth was at its highest level since before the recession.

Share tips, comment and bids

  • Financial Times: SNC-Lavalin has launched a £1.16 billion recommended offer for Kentz Corporation, the FTSE 250 oil and gas services specialist.
  • Financial Times: The tentative recovery in Spanish flotations suffered a setback as shares in eDreams Odigeo slumped when the online travel company reported limp results – just months after listing in what was hailed as a landmark in Spain’s economic recovery.
  • Financial Times: Wisconsin Energy will acquire Integrys Energy Group for $9.1 billion, including debt, in the latest sign of the flurry of consolidation in the US utility market.
  • Financial Times: Santander has agreed to buy GE Capital’s unit in Sweden, Denmark and Norway for about €700 million, in what the eurozone’s largest bank said was an attempt to enhance its geographical diversity and boost consumer finance in its home market of Spain.
  • Financial Times: Oracle has returned to big acquisitions to try to rekindle its lagging growth, with the announcement on Monday of the purchase of retail technology company Micros Systems for $5.3 billion.
  • Financial Times: Ithaca Energy, the Aim-quoted North Sea oil company, is to spend $170 million acquiring stakes in three fields from Sumitomo Corporation of Japan.
  • Financial Times: River and Mercantile, the asset management and pension consultancy that was created in February, has listed on the London Stock Exchange with a valuation of £150 million.
  • Financial Times (Lex): Hon Hai: too close to the tree.
  • Financial Times (Lex): Oracle / Micros: solid premise.
  • Financial Times (Lex): Naspers: pixel keiretsu.
  • Financial Times (Lex): Football finance: long ball.
  • Financial Times (Lex): GE / Alstom: in China.
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