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Wednesday Papers: Bank 'will not hesitate' to cool UK housing boom

Wednesday Papers: Bank 'will not hesitate' to cool UK housing boom

Top stories

  • The Daily Telegraph: Bank of England Governor Mark Carney has cemented pledge to "take further proportionate and graduated action" to cool the housing market if needed.
  • The Guardian: Inflation fell to its lowest level in almost five years in May as supermarket discount wars and a sharp fall in air fares benefited shoppers and travellers.
  • Financial Times: The prospect of Britain losing out to Germany in a row over Brussels jobs at an EU summit in Ypres, the first world war battlefield, has sent European officials scrambling to avert a public relations disaster.
  • Financial Times: Some of Citigroup’s biggest investors have said they want the bank to go court rather than pay as much as $10 billion to settle an investigation over the sale of mortgage-backed securities with the Department of Justice.
  • Financial Times: YouTube is about to begin a mass cull of music videos by artists including Adele and the Arctic Monkeys, after a number of independent record labels refused to sign up to the licensing terms for its new subscription service.
  • The Independent: Supermarket chain Morrisons will slash 2,600 jobs in a management overhaul as it attempts to revive its fading fortunes.
  • The Independent: Argentinian president Cristina Fernandez de Kirchner has declared her country will not pay the so-called “vulture funds” which bought Argentina’s defaulted debt in full; she described their demands as “extortion” and dismissed yesterday’s US Supreme Court ruling in their favour as “absurd”.
  • Financial Times: Li Keqiang has become the latest world leader to oppose Scottish independence, with the Chinese premier using his first trip to London to back a “strong, prosperous and united United Kingdom”.

Business and economics

  • Financial Times: Santander is to become the first high-street bank to refer its customers to an online peer-to-peer lender, in a sign that alternative finance providers are achieving mainstream acceptance.
  • Financial Times: The Archbishop of Canterbury has warned that the impetus for reforming the banking system is fading, even though taxpayers risk having to bail out the biggest banks – six years after the financial crisis.
  • Financial Times: George Osborne broke his own department’s rules when introducing his flagship Help To Buy home ownership subsidy scheme, a report by an influential group of MPs has found.
  • Financial Times: The UK car industry has drummed up more than £450 million worth of foreign investment over the past year, as part of the government’s efforts to arrest the decline in the country’s automotive supply chain.
  • Financial Times: Northern Iraq’s key oil facility has been forced to close after a siege by militants from the Islamic State of Iraq and the Levant (known as Isis) prompted the airlift of oil workers, imperilling petrol and power supplies to the north of the country as it slides towards civil war.
  • Financial Times: The US Federal Reserve will have to consider growing evidence that inflation is on the rise after the consumer price index climbed more than 2% from a year ago in May.
  • Financial Times: China’s sovereign wealth fund is shifting its focus to invest in agriculture and global food supplies in a significant strategic move that reflects the priorities of the country’s new leadership.
  • Financial Times: In an extended hangover from the 2008 crisis, banks are reluctant to lend because their balance sheets are too fragile or because regulators have constrained them; into this void have stepped a variety of “shadow banks”, less affected by the new regulations and free to grab business.
  • Financial Times: Siemens and Mitsubishi Heavy Industries mounted a charm offensive in Paris on Tuesday to convince the government and the Alstom board that their offer for the French industrial champion was superior to General Electric’s.
  • Financial Times: AP Møller-Maersk, Mediterranean Shipping Company and CMA CGM had hoped to form the so-called P3 Network to reduce costs on Asia-Europe, trans-Pacific and transatlantic routes by pooling 250 ships; the companies abandoned their plans after China’s commerce ministry concluded the alliance was not in the public interest.
  • Financial Times: Royal Dutch Shell is to raise $5 billion from the sale of a 19% stake in Australian energy company Woodside Petroleum, part of a two-year, $15 billion divestment plan designed to improve its financial performance.
  • Financial Times: BP has signed a $20 billion deal to supply China with liquefied natural gas over 20 years starting in 2019; under the terms of the agreement, the UK oil and gas major will ship 1.5 million tonnes of gas for Cnooc, the state-controlled Chinese energy group, per year.
  • Financial Times: Warren Buffett denied that he was planning to take Coca-Cola private, after another investor alleged the billionaire might be orchestrating a “sweetheart, insider deal” which sent the US drinks company’s shares higher.
  • Financial Times: Apple has agreed an undisclosed settlement in a civil class action lawsuit over claims it fixed ebook prices, according to documents filed with a New York court.
  • Financial Times: Bank of America Merrill Lynch bagged the top award at the City’s Oscars - the Thomson Extel survey of brokers - having been voted best pan-European broker for equity research for the second year in a row.
  • Financial Times: Citic Pacific has broadened investor support for its purchase of $37 billion in mainland assets from its Chinese government-controlled parent, in a further sign of interest in China’s efforts to reform its sprawling state-owned enterprises.
  • Financial Times: Amazon is in talks with European carriers for the rights to sell its long awaited smartphone, which will be revealed at an event in the US on Wednesday.
  • Financial Times: C5 Capital is launching Europe’s first ever cyber security-focused fund, as concerns about US security companies after the Edward Snowden leaks have pushed some European groups to consider sourcing security products closer to home.
  • Financial Times: Big tobacco is pushing further into the fast-growing electronic cigarette market with Reynolds American’s plan to expand its Vuse brand across the US next week.
  • Financial Times: Bumper World Cup sales forced JD Sports into keeping its like-for-like sales figures under wraps for fear of them being “potentially misleading”.
  • Financial Times: Whitbread has profited from jobs growth in the UK regions, enjoying a 6.9% increase in first-quarter sales.
  • Financial Times: British officials have rejected complaints by two campaign groups over the taxation and disclosure of transactions undertaken by Alliance Boots, the pharmacy company, saying the issues raised were “not material and substantiated”.
  • Financial Times: Crest Nicholson put itself firmly in the growth camp of volume housebuilders as it outlined plans to reach £1 billion in annual revenues over the next three years.
  • Financial Times: Cosmopolitan Housing Group, a UK social landlord that faced financial collapse in the aftermath of the credit crunch took overambitious housebuilding risks and was not sufficiently well regulated during the property boom, an independent report has found, warning that other landlords also needed to take action.
  • Financial Times: Insurance policyholders whose cover was deemed more important than others would be given additional protection if the company involved went bust under plans being considered by UK regulators.
  • Financial Times: Ashtead shares fell more than 5% on Tuesday despite the latest in a string of upbeat results, which analysts took as a sign that expectations were catching up with reality for the FTSE 100 tool hire company.
  • Daily Mail: The energy watchdog has backtracked on its decision to stop small supplier Ovo Energy paying interest on gas and electricity bill overpayments.
  • Daily Mail: Bosses at Royal Bank of Scotland have flatly denied claims that its controversial business restructuring unit raked in profits for the bank.
  • Daily Mail: Property prices increased by 9.9% in the year to April 2014, the biggest jump for nearly four years, official figures show today; according to the latest monthly index from Office for National Statistics, the average home in Britain has increased by £22,000 in the last 12 months.
  • Daily Express: Mark Carney has become the Bank of England’s first £1 million governor after the bank revealed it spent almost £200,000 relocating him and his family from Canada.
  • The Guardian: Customer complaints to the big six energy companies have reached their highest-ever levels; the big six suppliers – British Gas, EDF Energy, E.ON, Npower, Scottish Power and SSE – received a total of 1.7 million complaints in the first quarter of 2014, up from just under 1.5m in the same period last year, according to consumer group Which?
  • The Guardian: General Motors expects to begin processing claims related to its deadly faulty ignition switches by 1 August, chief executive officer Mary Barra will tell the US Congress on Wednesday.
  • The Guardian: Frozen food specialist Iceland is planning to open 40 new stores and take its online shopping service nationwide despite seeing profits slip for the second year running.
  • The Independent: British businesses have signed £14 billion worth of trade deals with China as the UK attempted to position itself as the country’s major trading partner in Europe.
  • The Independent: The publisher of Yellow Pages, which underwent a much-criticised rebranding as hibu two years ago, is bringing its old name Yell back.
  • The Daily Telegraph: Shipping firms are facing £300 million fuel bill due to EU regulations on sulphur, shipping leaders have warned.
  • The Daily Telegraph: ZTE is going after Apple and Samsung's American consumers with the goal of becoming the third biggest selling smartphone provider worldwide.

Share tips, comment and bids

  • Financial Times: CVC Capital Partners and Leonard Green have won a bidding battle to acquire a Californian marketing agency from rival Apax – highlighting the record pace at which private equity groups are recycling deals to one another, as they struggle to spend their replenished funds.
  • Financial Times: SSP, the travel food and beverage group run by former WH Smith boss Kate Swann, is hoping to emulate newly listed retailer B&M after unveiling plans for an initial public offering – despite fears the window for successful flotations is rapidly closing.
  • Financial Times: BG Group said it was selling its stake in a North Sea gas pipeline system to Antin Infrastructure for just under $1 billion.
  • Financial Times: Kai Yuan Holdings said that it would acquire Marriott Hotel Champs-Elysées for €345 million, according to a stock market filing in Hong Kong on Monday night; the deal sent its share price soaring more than 60%.
  • Financial Times: First Quantum Minerals is to buy a copper project in Argentina for $470 million, further extending the acquisitive miner’s development pipeline in Latin America.
  • Financial Times: RSA, the FTSE 100 insurer trying to recover from an accounting scandal in Ireland, has appointed Goldman Sachs to handle the sale of its Asia business, estimated to be worth at least £150 million.
  • Financial Times: Aena Aeropuertos, the Spanish airports operator, is positioning itself to go on the acquisition trail in Europe, Latin America and the US once its privatisation is completed this year, according to its chairman.
  • Financial Times: Daisy Group is hunting for acquisitions to bolster its internet and telecoms services business just months after the group was itself in talks to be taken over by Liberty Global.
  • Financial Times (Lex): Alstom: Option value.
  • Financial Times (Lex): Argentina: sovereign debt fine print.
  • Financial Times (Lex): Bond fund fees: fire exit.
  • Financial Times (Lex): ING/NN: steady prospects.
  • Financial Times (Lex): Aquila / Mineral Resources: Bao out?

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