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Wednesday Papers: BlackRock sounds alarm over IPO quality

Wednesday Papers: BlackRock sounds alarm over IPO quality

Top stories

  • Financial Times: The world’s largest institutional investor has sounded the alarm over the quality of European IPOs as hedge funds increase their bets against private equity-backed flotations, after the market for companies going public was soured by a string of high-profile failures.
  • The Guardian: Britain's big banks are exposed to multimillion pound fines and lawsuits that could dent their profits, the rating agency Moody's warned on Tuesday, as it downgraded its outlook for the sector because of new rules intended to prevent another taxpayer bailout.
  • The Daily Telegraph: Vladimir Putin is eyeing a $20 billion (£11.8 billion) trade deal with Iran that would see Russia sidestep Western sanctions on its energy sector.
  • The Independent: The boss of Edinburgh-based insurance giant Standard Life has warned that Scottish politicians have so far failed to make the case for a “Yes” vote in next month’s independence referendum.
  • Financial Times: Bernie Ecclestone walked free from a German court after a judge accepted a record $100 million offer to settle charges of bribery in the Formula One chief executive’s high-profile legal trial, provoking criticism from parts of the country’s establishment.
  • The Guardian: Britain's dominant services sector enjoyed a stronger than expected July, raising expectations that one or more Bank of England policymakers will vote for a rise in interest rates this week.
  • Financial Times: Iliad’s $15 billion offer for T-Mobile US is set to be rejected, as the American telecoms group’s shareholders – including majority owner Deutsche Telekom – believe it falls short of their valuation of the business.
  • Financial Times: US regulators have told Cobalt International Energy that they intend to bring charges against the Goldman Sachs-backed company after a three-year investigation into alleged corruption in its Angola operations.
  • The Daily Telegraph: Rupert Murdoch has abandoned his bid for Time Warner; 21st Century Fox announces plans to launch $6 billion share buyback after walking away from massive media deal.

Business and economics

  • Financial Times: The City watchdog has announced a one-year ban on the sale of complex bank bonds to individual investors, in the first use of its new consumer protection powers.
  • Financial Times: Scottish First Minister Alex Salmond was forced on the defensive over the question of what currency an independent Scotland would use during a closely watched televised debate between the heads of the rival campaigns on Tuesday night.
  • Financial Times: Barack Obama has announced more than $14 billion of investment by US companies in Africa and helped mobilise a further $17 billion in other state and multilateral funds for the continent as Washington seeks to claw back some of the ground lost recently to China by hosting the first US-Africa summit.
  • Financial Times: India’s central bank on Tuesday warned that high inflation remains a threat to the country’s long-term prospects, while keeping interest rates unchanged and forecasting a mild recovery in economic growth.
  • Financial Times: Genel Energy, the Kurdistan-focused oil explorer headed by former BP chief executive Tony Hayward, has predicted a surge in piped exports from the region in spite of the continued civil war on its borders.
  • Financial Times: Shares in Meggitt fell nearly 5% on Tuesday after the aircraft components maker downgraded revenue expectations, becoming the latest aerospace company to feel the impact of US military budget cuts and a strong pound.
  • Financial Times: The Huffington Post is teaming up with the former head of Al Jazeera to launch an Arabic-language edition targeting a fast-growing population of mobile-connected Middle Eastern youth.
  • Financial Times: Standard Life has become the first of several FTSE 100 pensions groups to disclose sharp drops in profits generated from annuities, underscoring the upheaval to the industry caused by George Osborne’s retirement overhaul.
  • Financial Times: Aggreko has become the latest company to be hit by the strong pound, which stripped out millions from its first-half revenue and trading profits in spite of a boost to its business from the World Cup.
  • Financial Times: United Spirits, the Indian liquor group recently acquired by the UK’s Diageo, has been unable to finalise its results for the financial year to the end of March after directors raised questions about a $225 million loan from the company to its former parent, controlled by Vijay Mallya.
  • Financial Times: Inmarsat has warned that it is struggling to get its latest satellites off the ground, following the failure of a Russian Proton rocket and concerns over the impact of economic sanctions on future launch attempts.
  • Financial Times: Samsung Electronics has resumed business with a Chinese supplier that employed child workers, on the basis that the children were recruited by a labour broker and not directly by the company’s management.
  • Financial Times: Portugal’s stock market regulator has launched an “in-depth investigation” into possible insider trading in the shares of Banco Espírito Santo on the last day they were traded before regulators announced a €4.9 billion rescue of the lender.
  • Financial Times: Facing rising bad loans, declining profits and falling market share, the heads of India’s public sector banks have plenty to worry about. But their sense of anxiety went up a notch further this weekend, with the arrest of one of their own on charges of soliciting bribes.
  • Financial Times: Chinese antitrust investigators have raided the Shanghai offices of Mercedes-Benz as a government investigation into price fixing by global automakers in the country intensifies.
  • Financial Times: Shares in WANdisco rose on Tuesday after the fast-growing software group secured a $10 million credit facility with HSBC to fund the rapid expansion of its big-data business.
  • Daily Mail: Intercontinental Hotels came out fighting yesterday with a 9% increase in its dividend as it countered pressure from an activist investor to merge with a rival.
  • Daily Mail: French bank Credit Agricole yesterday revealed the damage inflicted by the bailout of Portuguese lender Banco Espirito Santo (BES), as it said profits had almost halved.
  • Daily Express: Britain’s biggest car dealer Pendragon said that more people logging online to buy Ford Fiestas and Land ­Rovers had helped it ­to double profits.
  • The Guardian: A surge in activity across the US services sector in July fuelled by spending on new homes put the economy on track for a strong second half of 2014, according to a business survey.
  • The Guardian: Young people face a steeper climb to achieve the lifestyle of today's baby boomer generation, according to an index measuring intergenerational fairness which recorded a rise from last year.
  • The Guardian: Waitrose, in partnership with logistics company ByBox, will set up refrigerated lockers from this autumn in Gatwick's two terminals, enabling travellers to pick up their groceries on the way home.
  • The Guardian: London is the millionaire capital of the world, with almost 3% of the population commanding more than $1 million in net assets, according to a new study.
  • The Guardian: Roaring sales of offroad vehicles drove profits up at BMW and Toyota, helping both carmakers beat targets.
  • The Guardian: The former head of the CBI, Lord Digby Jones, is to call for the creation of a business covenant with the government in an attempt to rebuild public trust shattered by the financial crisis, spiralling energy bills and corporate tax avoidance.
  • The Independent: A high street payday lender with 27 branches in the north-west has collapsed, leading to the loss of 120 jobs; cash Store has been put into administration by its Canadian owners after losses mounted up at the Stockport-based British subsidiary.
  • The Independent: Lonrho, the UK investment company which used to dominate vast swathes of Africa under the buccaneering leadership of Tiny Rowland, is being sued for fraudulent misrepresentation by a former subsidiary over the lease of three aircraft used in Kenya and Zimbabwe.
  • The Independent: Demand for leather handbags in China has helped Coach off-set dwindling sales in its home market in the US.
  • The Daily Telegraph: US regulators have warned 11 giant banks which submitted unrealistic contingency plans in the event of bankruptcy that unprepared lenders could plunge the world into a new financial crisis.
  • The Daily Telegraph: Barclays won court approval to buy much of Lehman's brokerage business four days after the US company filed for the largest bankruptcy in American history.
  • The Daily Telegraph: Neil Woodford has said that GlaxoSmithKline's troubles are only temporary giving a vote of confidence to the embattled drug giant.

Share tips, comment and bids

  • Financial Times: Telefónica has offered €6.7 billion to acquire Vivendi’s Brazilian fixed-line telecoms operations in a deal that would help Spain’s largest telecoms group expand further in Latin America’s largest economy.
  • Financial Times: Li Ka-shing’s Cheung Kong Holdings revealed this week that it is in talks to buy a $5 billion fleet of 100 aircraft being sold by Awas, a European lessor owned by Terra Firma, the private equity group.
  • Financial Times: Gannett is the latest media company to spin off its publishing arm from faster-growing broadcast and digital operations amid profound changes in the news industry.
  • Financial Times: Urban Exposure, an investment vehicle which channels finance into the development of new homes, has pulled its planned £500 million flotation, becoming the second property company to cancel an IPO within a week.
  • Daily Mail: American drugs stores giant Walgreens is set to complete its acquisition of Boots in a deal worth around £5 billion.
  • The Daily Telegraph: Sprint has abandoned $30 billion bid for T-Mobile US; US telecoms firm Sprint will reportedly replace CEO after regulatory challenges see it axe bid for rival T-Mobile.
  • Financial Times (Lex): US newpapers: pure opportunity.
  • Financial Times (Lex): China property: Dragon’s den.
  • Financial Times (Lex): Telefónica / Vivendi: curiouser and curiouser.
  • Financial Times (Lex): Genel: getting the crude out.
  • Financial Times (Lex): IBM: cashing in its chips?

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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.

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