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Tuesday Papers: Market volatility plummets to multiyear lows

Tuesday Papers: Market volatility plummets to multiyear lows

Top stories

  • Financial Times: Global markets are less volatile than at any time in almost a decade as central bank intervention has sent share prices to record highs and interest rates to historic lows.
  • Daily Mail: Diplomatic tensions over Ukraine and the risk of a UK house price bubble are the two threats keeping the financial services industry up at night, according to a Bank of England survey.
  • The Guardian: TSB would be valued at £1.3 billion, less than the £1.5 billion value of its assets, at the mid point of the range for the shares outlined by the 24% state-owned bank; the move is intended to overcome any investor fatigue for new companies joining the stock market.
  • The Daily Telegraph: The Single Market of EU is under threat as a ‘very destructive process’ is underway in Europe, Business Secretary Vince Cable has warned.
  • The Guardian: Supermarkets are being warned they are locked in a "race to the bottom" in a new report showing that a food price war dragged sales lower last month; British Retail Consortium said like-for-like food sales fell by an annual rate of 2.2% during March to May, in contrast to a year earlier when turnover grew 0.7%.
  • Financial Times: Gordon Brown has warned the pro-union campaign that its “patronising” arguments risk galvanising the nationalist cause and prompting independence for Scotland “by mistake”.
  • Financial Times: Time Warner is finalising an investment in Vice Media that would value the maverick digital media and publishing group at more than $2 billion.
  • Financial Times: Merck & Co has agreed to buy Idenix Pharmaceuticals for $3.85 billion in a deal aimed at bolstering its position in the hotly contested race to develop a new generation of hepatitis C treatments.
  • The Daily Telegraph: Fears among Britain’s top lenders that the recent rapid house price growth could lead to a crash are now close to levels seen during the Great Recession, according to a Bank of England survey.
  • The Guardian: Britain's manufacturers have upgraded their outlook for this year after a buoyant start to 2014 but sounded a note of caution about the government's exports push.
  • The Independent: Mike Ashley’s Sports Direct has threatened to pull a life-changing bonus scheme for its shop floor and warehouse staff unless shareholders agree to a multi-million-pound bonus payment to its billionaire founder.

Business and economics

  • Financial Times: A number of US states are starting to consider carbon trading schemes to meet limits on greenhouse gas emissions put forward in President Barack Obama’s latest climate change initiative.
  • Financial Times: Budweiser added its name to the roll call of World Cup sponsors voicing concern about allegations swirling around the Qatar 2022 tournament, while a defiant Fifa president Sepp Blatter rounded on its critics for what he dubbed the “Qatargate” affair.
  • Financial Times: Narendra Modi’s new government in India on Monday announced ambitious, Chinese-style plans to revive the struggling economy with everything from a nationwide high-speed rail network and a better tax system to improved schools and more toilets.
  • Financial Times: J Sainsbury is to begin a trial of selling clothing online, as it seeks to take on high street rivals with a broader push into fashion.
  • Financial Times: Independent advisers are gaining traction in the market with claims that they can help manage the conflicts that come up between a company, its underwriting banks and investors during the IPO process.
  • Financial Times: Naked Wines – the “Kickstarter for vineyards” – is considering temporarily closing its angel investment scheme to new members after the company realised it may struggle to produce enough wine for them.
  • Financial Times: Cable & Wireless Communications has appointed former Leap Wireless executive Perley McBride as its chief financial officer to help oversee the next stage of its strategic shift to the Americas.
  • Financial Times: There are more millionaires in the world than ever before as buoyant equity markets, stability in the industrialised economies of the US and Europe and supportive central bank monetary policy have driven global private wealth to a record $152 trillion.
  • Financial Times: A boom in investment in low-end refineries along the US Gulf of Mexico is helping to ease strains in the country’s oil industry, giving the White House some breathing space as it looks at relaxing a longstanding ban on exporting crude oil.
  • Financial Times: Facebook has hired the president of PayPal, David Marcus, to head up its mobile messaging unit, as it further expands in the chat app market by launching a competitor to Snapchat.
  • Financial Times: MegaFon, the Russian telecoms operator, has acquired about $600 million of equipment and maintenance services from China’s Huawei Technologies.
  • Financial Times: The new chief executive of Enel, the Italian electricity group, plans to divert capital spending to emerging economies as a way for the company to grow while European energy markets are still overshadowed by weak demand and policy uncertainty.
  • Financial Times: Instagram, the Facebook-owned photo-sharing app, will start to take advertisements outside the US this year, as it begins selling to marketers from the UK, Canada and Australia on the platform.
  • Financial Times: Tesco will today shake up the retail banking industry when it becomes the first supermarket to launch a current account in competition with high street banks.
  • Financial Times: The London Stock Exchange Group is close to buying Russell Investments, the US index compiler and asset manager, in a deal worth about $2.8 billion that would substantially increase the UK group’s US operations.
  • Financial Times: BP’s compensation payments for businesses affected by the Deepwater Horizon disaster, which have been suspended since October, will have to resume after the US Supreme Court rejected a call from the company for it to keep the block in place.
  • Financial Times: Government brokered talks to end the five-month platinum strike that is battering South Africa’s economy collapsed on Monday with the parties deadlocked.
  • Financial Times: Sir Richard Branson is providing funding for London-based money transfer start-up TransferWise in the latest sign of investor enthusiasm for the city’s vibrant financial technology sector.
  • Financial Times: Sony has topped Nintendo in annual sales of video game consoles for the first time in eight years – a bittersweet victory as both Japanese companies have failed to stop customers from abandoning specialised game equipment in favour of smartphones.
  • Financial Times: CityFibre, the British telecoms infrastructure owner, has signed off a £30 million fundraising to expand the reach of its high-speed fibre business to more than 1 million homes and businesses by 2016.
  • Daily Mail: London-listed miner Vedanta Resources is to face a forensic audit of tax affairs in Zambia going back to 2007, as cracks begin to appear in the relationship with the copper-rich country.
  • The Guardian: The strength of the jobs market has passed its 2007 peak and is expected to grow strongly over the next year, according to a new report. Manpower said hiring intentions in Scotland were at a seven-year high despite the uncertainty being expressed in some quarters about independence.
  • The Guardian: Sir Terry Leahy, the former chief executive of Tesco, says he is disappointed with the retailer's performance since he left the business in 2011.
  • The Guardian: Britain's car insurers have made their first collective annual profit in 20 years amid signs that a clampdown on fraudulent claims is starting to have an effect; according to consultants at EY, they paid out £98.50 for every £100 received in premiums last year – only the second time the sector has swung to profit since its study began in 1985.
  • The Independent: TSB admitted that nearly half of its residential mortgage book is made up of high-risk interest-only home loans – more than twice the comparable proportion at the Nationwide Building Society.
  • The Independent: London-listed Hightex, the company behind the roof of Rio de Janeiro’s Maracana stadium, which is due to stage the World Cup’s first match, blamed problems with its Brazilian joint-venture partner for widening losses yesterday.
  • The Daily Telegraph: Factories will be paid to switch off at times of peak demand in order to keep households’ lights on, if Britain’s dwindling power plants are unable to provide enough electricity, under the backstop measures from National Grid.
  • The Daily Telegraph: Drinks giant Diageo, which has been hit by volatile trading in emerging markets, is looking to save £200 million a year by June 2017.
  • The Daily Telegraph: The chairman and chief executive of Cluff Natural Resources has said that there could be huge coal reserves under Scotland's Firth of Forth which could provide a new source of gas for power stations and industry.

Share tips, comment and bids

  • Financial Times: Tyson Foods has knocked out rival poultry producer Pilgrim’s Pride in the bidding war for Hillshire Brands with what it called a “unilaterally binding” $8.55 billion offer, bringing it a step closer to acquiring the maker of Ball Park hot dogs.
  • Financial Times: British buyout group Cinven has agreed a deal for the telecommunications fibre network of Spanish utility Gas Natural Fenosa, highlighting investors’ renewed interest in tapping the nascent recovery of the Spanish economy.
  • Financial Times: Quindell, the British insurance claims processor, said on Monday that work was progressing on a move to a main London listing.
  • Financial Times: Greystar Real Estate Partners, the biggest apartment owner in the US, has bought the country’s second-largest multifamily housing operator, Riverstone Residential Group, in a deal that almost doubles its size.
  • Financial Times: Morgan Stanley has further pruned its commodities trading division with the sale of petroleum distributor TransMontaigne to a fast-growing energy partnership.
  • Financial Times: Man Group, the UK-listed hedge fund manager, is buying Pine Grove, a small US fund of hedge funds specialising in credit investments, as it seeks to bolster its presence in North America and redeploy its sizeable cash pile on acquisitions.
  • Financial Times: Antin Infrastructure Partners, which owns a third of all trains running in the UK, has amassed the second largest fund targeting European infrastructure assets since the financial crisis as yield-hunting investors rush in to tap into the region’s economic recovery.
  • Daily Mail: Upper Crust and Caffè Ritazza owner SSP gave the biggest indication yet that the company could join the rush of retailers seeking to float on the London Stock Exchange.
  • The Guardian: Web hosting company GoDaddy announced plans on Monday to raise $100 million in an initial public offering.
  • Financial Times (Lex): Greece: hit or myth.
  • Financial Times (Lex): Tyson/Hillshire: Meatpacking district.
  • Financial Times (Lex): TSB: little Lloyds.
  • Financial Times (Lex): Sports Direct: time to share.
  • Financial Times (Lex): Uber: you lookin’ at me?

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