Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Wednesday Papers: Barclays under fire on pay amid job cuts

Wednesday Papers: Barclays under fire on pay amid job cuts

Top stories

  • Financial Times: Attempts by Barclays chief executive Antony Jenkins to clean up his bank’s image faced a serious setback on Tuesday amid criticism of his decision to boost bonuses by 10% even as the group announced falling profits and 12,000 job cuts.
  • The Daily Telegraph: Barclays is planning to cut 820 managing director and director-level staff, of which about half are expected to come from its investment banking arm, as part of an effort to reduce costs.
  • Financial Times: Nestlé is stepping back from its 40-year relationship with L’Oréal by selling a €6 billion stake in the cosmetics maker back to the French group.
  • The Daily Telegraph: Vodafone's £5.8 billion Ono bid is expected to be rejected as the Spanish cable operator's board leans towards IPO.
  • Financial Times: The Bank of England has called in external lawyers to help examine allegations that its officials indirectly condoned foreign exchange market manipulation, Andrew Bailey, head of the Prudential Regulation Authority, said, saying it takes the claims “extremely seriously”.
  • The Guardian: Lloyds Banking Group is expected to announce that it plans to hand shares worth more than £1.5 million to its boss, Antonio Horta-Osorio.
  • Financial Times: Brevan Howard, the world’s third-largest hedge fund manager, is shutting its $2 billion emerging market fund after a poor performance last year as investors began to scale back their exposure to developing economies.
  • Daily Mail: Network Rail has announced plans to cut the cost of running the railway by 20% over the next five years in a bid to improve its service and become more cost effective.

Business and economics

  • Financial Times: The Republican-controlled House of Representatives has voted to increase US borrowings after John Boehner, the speaker, bucked conservatives in his party and declared he would not attach any conditions to lifting the debt ceiling.
  • Financial Times: Janet Yellen has turned a cold shoulder to the pleas of emerging markets by signalling that only a domestic slowdown will influence US monetary policy, in comments that suggest there will be no relief for those countries being battered by the Fed’s reduction of its asset purchases.
  • Financial Times: Sam Zell, the billionaire property investor, has joined the effort to unseat the board of the CommonWealth real estate investment trust, in a battle that has become a touchstone for corporate governance concerns in the Reit sector.
  • The Independent: British Gas owner Centrica suffered a shares fall on Tuesday after Energy Secretary Ed Davey called for radical reform of the energy supply market.
  • Daily Mail: Thousands of pub landlords could lose up to £22.6 million if Punch, Britain’s second-largest pubs group, falls into administration at the end of the week.
  • The Guardian: Commonwealth Bank has posted a $4.2 billion half year profit, up 14% on the previous year, and handed shareholders an interim dividend of $1.83 per share.
  • Financial Times: Thomas Cook has taken another chunk out of its debt, sold Gold Medal, its long-haul travel distribution business, for £45 million and narrowed its first-quarter losses to £56 million, as the tour operator stepped up its turnround strategy.
  • Daily Mail: More than £125 million was wiped from the value of RSA on Tuesday as its shares fell more than 3% in the wake of Britain’s flooding crisis.
  • Financial Times: Tesco is working on a middle management shake-up that could lead to roles being cut, as Britain’s biggest retailer battles to turn round its domestic business.
  • The Daily Telegraph: Research reveals Microsoft's Bing search engine filters Chinese-language results around the world, as it does in mainland China.
  • Financial Times: Alibaba, the Chinese ecommerce company that has long connected US brands to Chinese suppliers, now wants to launch its first majority-owned ecommerce venture in the US.
  • Financial Times: A debate over the future of internet gambling has created a rift among US casino industry titans, pitting advocates of expansion such as Jim Murran, chief executive of MGM Resorts, against billionaire opponents Sheldon Adelson and Steve Wynn.
  • The Independent: Billionaire Donald Trump has lost a legal challenge against a planned offshore wind farm which he claims would spoil the view from his golf resort in Aberdeen.
  • Financial Times: Britannia Building Society would have failed if it had not been for the takeover of the lender by the Co-operative in 2009, Andrew Bailey, the head of the Prudential Regulation Authority, told the Treasury select committee.
  • Financial Times: Glencore Xstrata lifted copper output 25% last year after expanding mines in Africa, underscoring the resources group’s bullish outlook for the metal, which is essential for China’s urbanisation and industrial growth.
  • The Independent: Housebuilder Bellway saw its order book swell to £783 million at the end of January as buyers continued to feast on the Government’s Help to Buy scheme.
  • Financial Times: Korea Development Bank has estimated that its 2013 net loss will top $938 million due to the impact of restructuring in Korea Inc, highlighting the depth of corporate distress in Asia’s fourth-largest economy.
  • Financial Times: A mild recovery in European demand helped Tata Steel, India’s largest private sector steelmaker by revenue, to post a modest net profit of $81 million in the third quarter, raising hopes of a wider turnround for the sector.

Share tips, comment and bids

  • Financial Times: Two continental Europe-focused investment managers, Tages Capital and La Française, are to merge their fund of hedge fund businesses into a $3 billion vehicle designed to better target countries where such products remain relatively unused.
  • The Daily Telegraph: Allianz takes 8% stake in Bayern Munich football club; the deal gives the club an implied valuation of €1.32 billion.
  • Financial Times: Delays in obtaining antitrust clearance from China for the $35 billion Publicis and Omnicom merger, among other complications, are pushing the expected closing date for the deal back about nine months to the third quarter this year.
  • Daily Mail: Pure Gym and The Gym Group, two no-contract gym operators, have announced a £300 million merger to form a new low-fee network with more than 100 sites across the UK.
  • The Guardian: New Look is standing back from the rush to the stock market with no plans to seek a public listing until next autumn at the earliest.
  • The Guardian (Comment): State support has been key in rebuffing the global pressures – cheaper labour elsewhere, deteriorating consumer confidence, excess factory capacity – that have seen car plants shut all over the world.
  • The Daily Telegraph (Comment): To many wealth creators and captains of industry, it feels as if the UK is slowly falling out of love with business, and that the climate will worsen considerably over the next few years with yet more, usually irrational, government intervention.
  • The Daily Telegraph (Comment): Barclays chief executive Antony Jenkins grapples with a bonus legacy he inherited and the need to cut costs.
  • Financial Times (Lex): CVS Caremark: decision to kick the habit of cigarette sales makes business sense.
  • Financial Times (Lex): Barclays: bank’s chief could do with some help from UK economy.
  • Financial Times (Lex): Kazakhmys: Kazakh devaluation rescues high-cost miner? Not so fast.
  • Financial Times (Lex): Michelin: French tyremaker has plenty of bounce left to come.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter