Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Tuesday Papers: Swiss and UK watchdogs step up forex investigations

Tuesday Papers: Swiss and UK watchdogs step up forex investigations

Top stories

  • Financial Times: The sprawling probe into alleged manipulation of foreign exchange markets intensified yesterday when two UK and Swiss regulators stepped up their efforts to root out the rigging of crucial financial benchmarks.
  • The Guardian: The UK government's desperation to sell Royal Mail cost taxpayers £750 million in a single day, the National Audit Office has said in a scathing report into the privatisation of the 500-year-old national institution.
  • Financial Times: French President François Hollande has sacked his prime minister in a bid to revive his flagging administration after a stinging defeat in local elections at the weekend.
  • The Independent: Inflation in the eurozone hit an all-time low of 0.5%, building pressure on the European Central Bank to embark on money-printing to ward off the threat of deflation.
  • The Independent: Mortgage lending saw a surprise decline in February but credit conditions brightened for Britain’s smaller businesses, Bank of England figures showed yesterday.
  • The Guardian: Western governments have put in place banking regulations that could be "mutually destructive" and undermine efforts to prevent bust banks from costing taxpayers billions of pounds, according to a report by the IMF.

Business and economics

  • Financial Times: General Motors announced a new slew of vehicle recalls and more than doubled its estimate of the costs of recalling faulty vehicles this quarter as Mary Barra, chief executive, prepared for a grilling from sceptical US legislators.
  • Financial Times: The UK’s chief financial watchdog admitted his organisation faces serious questions after confusing reports about a new insurance inquiry led to “extreme movements” of more than 20% in some sector share prices last week.
  • Financial Times: The traditional model of healthcare will have to change as the NHS faces the “most sustained budget crunch in its 66-year history".
  • Financial Times: The UK’s new competition watchdog has pledged to scrutinise the ecommerce market, looking at areas where entrants may have trouble competing with big established players.
  • Financial Times: The £1.2 billion state project to provide fast broadband services to rural areas has been attacked for creating a “monopoly” for BT by the government’s spending watchdog.
  • Financial Times: Janet Yellen said there was still considerable slack in the US economy and labour market, implying the Federal Reserve would continue a highly stimulative monetary policy for the foreseeable future.
  • Financial Times: Dutch bank ING has promised to restart dividend payments next year after repaying €1.23 billion of government loans from its bailout during the financial crisis.
  • Financial Times: Former Xstrata chief, Mick Davis, a driving force in the dealmaking that transformed the mining sector during a decade-long commodities boom, moved closer to a return to the industry after securing $2.5 billion for a fresh wave of investment.
  • Financial Times: BT is to mount a fresh challenge to mobile operators with cut-price bundled offers using its broadband network and the 4G spectrum it unexpectedly acquired last year.
  • Financial Times: Aston Martin is in talks with Mercedes-Benz over building its first SUV, but the British carmaker’s owners have ruled out an imminent sale to the German manufacturer.
  • Financial Times: Lufthansa is cancelling 3,800 flights from Wednesday because of a three-day strike by pilots which is set to cost the German airline tens of millions of euros.
  • Financial Times: KKR is backing a European train leasing venture to take advantage of the liberalisation of rail traffic in the region.
  • Financial Times: Brazil’s Vale has warned for the first time that it may lose its entire investment in the ill-fated Simandou iron ore mine in Guinea pending a review by the government of the west African country.
  • Financial Times: Huawei Technologies, the Chinese telecoms equipment company, posted record sales and its strongest net profit in three years in 2013 on the back of its enterprise and consumer businesses.
  • Financial Times: Lonmin, the platinum miner struggling with a 10-week strike that has halted its production, on Monday announced the retirement of its chairman.
  • Financial Times: The new head of Japan’s banking lobby has vowed to crack down on loans to organised crime groups, while admitting that there is “no way” of knowing the true scale of the problem.
  • Financial Times: American companies have stockpiled nearly a trillion dollars of cash offshore to avoid paying higher tax bills at home, according to an analysis released on Monday.
  • Financial Times: ExxonMobil, the US oil group, said it was “highly unlikely” that the world would cut greenhouse gas emissions sufficiently to keep global warming within the internationally agreed limit of 2C.
  • Financial Times: Caterpillar, the world’s largest maker of heavy machinery, used a Swiss affiliate to shift 85% of its parts profits to defer or avoid paying $2.4 billion in US taxes, according to a report by Carl Levin, a Democratic US senator.
  • Financial Times: The £7 billion job of decommissioning Britain’s oldest nuclear power plants has been won jointly by UK defence specialist Babcock and US engineer Fluor.
  • Financial Times: Privately held Rongsheng Heavy Industries, which announced an Rmb8.9 billion ($1.4 billion) annual net loss on Monday, said it had reached an agreement with 10 Chinese banks to extend repayments on more than Rmb10 billion worth of debt.
  • Financial Times: Brush, part of British engineering group Melrose, has opened an office in Abu Dhabi to recruit engineers from India after struggling to find the skills in Europe.
  • Financial Times: Shares in Boohoo.com fell below their offer price and hit a record low just weeks after the fast fashion website surged up to 70% on its market debut.
  • Financial Times: Allan Leighton - who managed Asda’s £6.7 billion sale to Walmart in 2009 – is to become chairman of Entertainment One.
  • Financial Times: John Reed, the former co-chief executive and architect of the modern day Citigroup, said “managerial turmoil” at the sprawling global bank had hindered its ability to secure the Federal Reserve’s approval for its 2014 capital plans.
  • The Independent: The drugs giant GlaxoSmithKline is ploughing £125 million into Africa to tap into the growing middle-class demand for medicine on the continent.
  • The Guardian: Marks & Spencer is losing market share faster than any of its rivals among the UK's top 10 clothing retailers, according to new analysis released before the chain's latest results are revealed next week.
  • Daily Mail: Persimmon pay scheme slammed as 150 top managers are in line for £400 million reward.
  • Daily Mail: EasyJet plans to create 2,500 jobs by more than doubling its presence at Luton Airport, just days after sealing a deal to expand at Gatwick.
  • Daily Mail: London now top European destination for super-rich whose average London home will cost more than £10 million.
  • Daily Mail: Rising house prices were identified as one of three major risks to the UK’s economy in the coming year by the City watchdog.
  • The Daily Telegraph: London's Mayor has published proposals for how the site currently occupied by Heathrow could be re-developed.

Share tips, comment and bids

  • Financial Times: A Silicon Valley “big data” start-up, Cloudera, has raised $900 million in a private share sale, marking the biggest fundraising by a US tech company since Twitter’s IPO last November.
  • Financial Times: Quindell is aiming for inclusion in the FTSE 250 index in June, the claims processor said as it reported that pre-tax profit had tripled in 2013.
  • Financial Times: Former CEO of Barclays Bank, Bob Diamond, has announced his first deal since being ousted as chief executive of Barclays in 2012 – to buy BancABC, a Botswana-based lender that operates in Zimbabwe.
  • Financial Times: Charity Bank, the lender that specialises in finance for small UK charities, will on Tuesday announce an investment from Big Society Capital that it hopes will lead to a more than quadrupling of its annual lending volumes.
  • Financial Times: Ares Management, an alternative asset manager that oversees $74 billion, has filed for a US initial public offering in a move that would make it the biggest private equity company to go public since Carlyle.
  • The Daily Telegraph: Green Bank buys £461 million stake in offshore wind projects at Westermost Rough and Gwynt y Mor.
  • Financial Times (Lex): X2 Resources: the mining group is well-placed to buy undervalued mines. But others may also be well-placed to keep them.
  • Financial Times (Lex): Italian banks: two banks, two plans. But Intesa seems to have the edge over UniCredit.
  • Financial Times (Lex): Shipbuilders: higher average new vessel prices suggest that the industry has at least bottomed.
  • Financial Times (Lex): Leverage ratios: higher leverage typically leads to higher defaults.
  • Financial Times (Lex): América Móvil: there will be a time for optimists to buy the telco’s shares. It has not arrived yet.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Your Business: Cover Star Club

Profile: The opportunity set that attracted Brett Williams to wealth management

Profile: The opportunity set that attracted Brett Williams to wealth management

Brett Williams is best known for helping to build some of the biggest platforms in the IFA market.He made the move over to wealth management to head SEI’s UK business earlier this year in the belief that this is where the best opportunities now lie.

Wealth Manager on Twitter