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Tuesday Papers: Tesco bows to City and loses CEO

Tuesday Papers: Tesco bows to City and loses CEO

Top stories

  • Financial Times: Tesco bowed to pressure from City investors on Monday ousting its chief executive Philip Clarke and replacing him with the first outsider, Dave Lewis, in its 95-year history as it issued a fresh profits warning.
  • The Guardian: The Serious Fraud Office has launched a criminal investigation into alleged rigging of the £3 trillion-a-day foreign exchange markets; the move comes after around 15 authorities around the world said they were investigating allegations of collusion and price manipulation in the largely unregulated currency market.
  • The Daily Telegraph: Following MH17 crash, Lufthansa has joined Emirates in calling for an international summit on how to approach air space over conflict zones in future.
  • Financial Times: Time Warner, which last week knocked back a $73 billion approach from Rupert Murdoch’s 21st Century Fox, has changed its bylaws in a move designed to block a potential hostile takeover; the decision to scrap a rule allowing investors to requisition a shareholder meeting will strengthen Time Warner’s ability to resist Mr Murdoch’s overtures even if its investors want a deal to be considered.
  • Financial Times: Anglo American is to sell a major part of its platinum mining operations in South Africa, following the end of a five-month workers’ strike.
  • The Guardian: More than a dozen hedge funds, with assistance of Barclays and Deutsche Bank, used “dubious” financial products to claim billions in unjustified tax savings and circumvent rules meant to limit risky bets, a US Senate subcommittee investigation has found.
  • The Daily Telegraph: Europe's recovery "runs out of steam" as broker Macquarie warns that China alone can't support global industrial output.
  • Financial Times: Clients are fleeing Barclays’ “dark pool” in the wake of a US lawsuit alleging the UK bank misled them about high frequency activity in its private trading venue.
  • Financial Times: Emerging and frontier market countries have borrowed a record amount of money in capital markets in the first half of this year, even as central bankers warn that “debt market euphoria” could be storing up trouble for the future.
  • Financial Times: John Kerry, US secretary of state, is expected to travel to Egypt on Monday in an effort to restore a 2012 ceasefire between Israel and Hamas, a day after the most intense fighting yet in the near two-week war claimed the lives of at least 60 Palestinians, many of them civilians in Gaza.

Business and economics

  • Financial Times: Officials led by Mark Carney, the Bank of England governor, are attempting to bridge sharp differences among leading G20 countries as they prepare a landmark set of proposals aimed at tackling the problem of “too big to fail” banks.
  • Financial Times: General Motors plans to enter Europe’s entry-level car market with a line of low-cost models as it looks to claw back market share lost to budget rivals.
  • Financial Times: American International Group has recovered more than $2 billion in settlements with banks over the soured mortgage bonds that helped push the world’s biggest insurer to the brink of failure during the financial crisis.
  • Financial Times: George Osborne has warned that Britain must be prepared to take an economic hit under a tougher sanctions regime against Moscow, and that short-term commercial loss was a price worth paying to ensure security in Europe.
  • Financial Times: Scotland’s financial services industry would be put at “significant risk” by the creation of a border with the rest of the UK, a committee of MPs said on Monday.
  • Financial Times: Mobile phone coverage in rural areas is to be improved by Vodafone as the government works on plans to eliminate gaps in the telecoms network.
  • Financial Times: China’s total debt load has climbed to more than two and a half times the size of its economy, underscoring the difficult challenge facing Beijing as it seeks to spur growth without sowing the seeds of a financial crisis.
  • Financial Times: Governments across the world have collected more than €37 billion of tax from secret offshore accounts since 2009, it emerged on Monday as new details were unveiled of the next phase of the global crackdown on tax evasion.
  • Financial Times: The Bundesbank has backed the push by Germany’s trade unions for inflation-busting wage settlements, in a remarkable shift in stance from a central bank famed for its tough approach to keeping prices in check.
  • Financial Times: A supplier to McDonald’s and KFC in China has been accused of supplying rotting meat to the fast-food chains and falsifying product expiration dates, in the latest food safety scandal to hit the country.
  • Financial Times: Netflix passed through the 50 million subscriber barrier in the second quarter as the streaming video subscription operator doubled profits and laid out plans to launch its service in France and Germany in September.
  • Financial Times: The former chief financial officer of Autonomy has accused Hewlett-Packard of using a legal settlement to cover up the real reasons for its accusations of a multibillion-dollar fraud at the UK software company.
  • Financial Times: Tiffany & Co chief executive Michael Kowalski has announced his retirement after 15 years at the helm of the US luxury jeweller, passing the baton to President Frederic Cumenal.
  • Financial Times: Huawei Technologies, the Chinese telecommunications group that has been the subject of international security concerns, saw revenue in the first half of 2014 jump 19% year-on-year to Rmb135.8 billion fuelled by global network demand.
  • Financial Times: Shares in data storage equipment maker EMC rose Monday on hopes that its new activist shareholder, Elliott Management, will smoke out a bidder for the company’s core business.
  • Financial Times: Philips is confident its second-half earnings will beat those in the same period last year in spite of a difficult second quarter marked by weak sales, negative currency effects, and the temporary suspension of production at its healthcare facility in Cleveland, Ohio.
  • Financial Times: Seoul’s city government has launched an effort to ban Uber, dealing a blow to the Asian expansion drive of the $18 billion driver-hailing smartphone app that has faced furious opposition from taxi drivers around the world.
  • Financial Times: Banco Espírito Santo is to appoint a special financial adviser to help improve its balance sheet after the central bank said international banks and investment funds were ready to inject fresh capital into the Portuguese lender.
  • Financial Times: Microsoft’s new chief executive is set to face tough questions from Wall Street on Tuesday about his longer term plans for the company, despite appeasing investors last week with deep job cuts in the Nokia handset division.
  • Financial Times: Babcock International, a key supplier to the UK Ministry of Defence, has increased its order book to £13.5 billion, boosted by its recent acquisition of helicopter company Avincis.
  • Financial Times: Allergan is to cut its global workforce by 13% as part of a restructuring plan designed to save $475 million next year, and boost the Botox maker’s efforts to resist a $53 billion hostile takeover by Valeant.
  • Financial Times: Big US banks reported the lowest loan losses in eight years in the second quarter, reflecting tighter lending standards since the financial crisis.
  • Daily Mail: Aldi is to invest £600 million in a major expansion drive in the UK, heaping further pressure on Tesco and the other Big Four grocers.
  • Daily Mail: The bosses of TalkTalk and Experian have been appointed to the Bank of England’s governing body; Dido Harding will join the Bank’s Court alongside Don Robert, chairman of credit checker Experian, and Drax boss Dorothy Thompson.
  • Daily Mail: Rising house prices, increased mortgage pricing and clampdowns on lending multiples continued to lock first-time buyers out of the housing market during May; the National Association of Estate Agents said overall sales made to first-time buyers decreased from an average of 25% in May to 20% in June.
  • Daily Mail: Some 218,000 struggling small businesses could be tipped into more serious financial trouble were the Bank of England to raise interest rates to 1.5%, according to research.
  • Daily Mail: The average asking price for a property in England and Wales has fallen 0.8% so far this month to £270,159, according to the latest index from Rightmove.
  • The Guardian: MPs have called on the competition watchdog to force high street banks to improve standards and the way they treat their customers after the Competition and Markets Authority signalled it would investigate the industry.
  • The Guardian: The boss of luxury yacht builder Sunseeker has abruptly left the company; Stewart McIntyre, the managing director, will leave the Dorset-based company owned by China's richest man, Wang Jianlin, at the end of the month.
  • The Guardian: Britain will pass another milestone in its economic recovery this week, with official figures showing it has clawed back all the output lost since the 2008 financial crisis.
  • The Independent: Salamander Energy investors hoping for a windfall from a juicy takeover bid have been disappointed; the Asian-focused oil and gas explorer fell to the bottom of the small-cap index, down 8p at 119.5p, after admitting it had called time on efforts to sell itself.
  • The Daily Telegraph: Espirito Santo crisis could affect Portugal's economy, president Anibal Cavaco Silva has warned; President's warning has come just days after holding company of country's second-largest bank says it can't meet its obligations.
  • The Daily Telegraph: French economy 'catastrophic', according to business federation calling for an end to the 75% tax rate and 35-hour working week.
  • The Daily Telegraph: The dividends paid out by British companies during the second quarter of this year grew by only 1.2% compared with the same period a year earlier – the lowest level in three years – as the strong pound weighed on the confidence of businesses.

Share tips, comment and bids

  • Financial Times: British Sky Broadcasting has acquired a majority stake in Love Productions, the production house behind the culinary hit series, The Great British Bake Off, that reawakened Britons’ love for food mixers, icing bags and edible flowers.
  • Financial Times: Glencore Xstrata’s sale of its Las Bambas copper project to a Chinese consortium is on track after shareholders of MMG, the Hong Kong listed subsidiary of the China Minmetals group, approved the planned deal on Monday.
  • Financial Times: EY has agreed to merge with management consultant the Parthenon Group, highlighting the continued drive by the “big four” to expand and diversify beyond their traditional auditing roots into more lucrative businesses.
  • Financial Times (Lex): EMC / VMware: theory of relativity.
  • Financial Times (Lex): Platinum mining: sunk costs.
  • Financial Times (Lex): Telecoms: Huawei or the other way.
  • Financial Times (Lex): Tesco: Clarke, not Superman.
  • Financial Times (Lex): Lynas Corp: medium rare.

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