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Wednesday Papers: Carney accused of confusion over rates

Wednesday Papers: Carney accused of confusion over rates

Top stories

  • Financial Times: MPs have accused Mark Carney, the Bank of England governor, of sending out confusing signals over the timing of interest rate rises, with one likening him to an “unreliable boyfriend” for the way he was communicating his position.
  • The Daily Telegraph: Energy companies will be offered the chance to explore for shale gas across bigger blocks of land, under a revised system aimed at enticing them to commit to fracking.
  • The Guardian: Vince Cable has warned "unscrupulous employers" that he would ban clauses in zero-hours contracts that prevent workers from accepting shifts with more than one employer.
  • The Independent: Military equipment maker Chemring has fired chief Mark Papworth after the group was rocked by a £72 million pre-tax loss in just six months.
  • Financial Times: Dubai’s stock market has recorded its biggest monthly fall since 2008, as upheaval at one of the emirate’s largest companies and security concerns over Iraq continue to drive share prices down.
  • The Daily Telegraph: City Minister Andrea Leadsom has indicated that regulation on smaller banks could be relaxed as part of an attempt to promote competition in the sector.

Business and economics

  • Financial Times: The Middle Eastern owner of Manchester City football club, Abu Dhabi United Group, is to build up to 6,000 homes in the city, mostly to rent, in a £1 billion deal with the council.
  • Financial Times: The Green Investment Bank is to launch a £1 billion fund to buy stakes in UK offshore wind farms in an effort to bolster a flagship green energy industry that has suffered a series of setbacks in the past six months.
  • Financial Times: Turkey’s central bank has cut benchmark interest rates well below inflation, in a move that follows sustained pressure from the government of Recep Tayyip Erdogan, prime minister.
  • Financial Times: Central bankers are “ruining” the insurance sector by keeping interest rates at historic lows, an industry veteran has said, in one of the most outspoken criticisms of western monetary policy by a business leader to date.
  • Financial Times: The role of independent advisers is coming under greater scrutiny as a spate of recent flotations including those of eDreams, Saga and Card Factory have underperformed.
  • Financial Times: Suntory Holdings, the acquisitive Japanese drinks group, has poached Takeshi Niinami from convenience store operator Lawson to be its first chief executive from outside the founding family.
  • Financial Times: Singapore has fallen in to line with other major financial centres by requiring that all banks operating in the city-state have enough cash and easy-to-sell assets in hand to allow them to survive a short-term market crisis.
  • Financial Times: French billionaire Vincent Bolloré has provided the first insight into Vivendi’s new strategy, saying that the group would unlock value by integrating its various media activities.
  • Financial Times: AT&T had a bad record of keeping its past merger-related promises, and politicians should be sceptical of commitments it was making to gain approval for its proposed acquisition of DirecTV, critics of the deal told members of Congress on Tuesday.
  • Financial Times: Hon Hai Precision, the Apple supplier also known as Foxconn, faces a rare challenge at its annual meeting from a group of global institutional investors over its corporate governance.
  • Financial Times: The Central Intelligence Agency is stepping up its reliance on Amazon’s burgeoning cloud computing infrastructure, as US spymasters look to use cloud-based commercial software in their analytical work.
  • Financial Times: The US units of HSBC, Royal Bank of Scotland and Santander, which failed the Federal Reserve’s stress tests in March, will not resubmit new capital plans to the central bank this year, ruling out higher dividend payments to their parent companies until 2015.
  • Financial Times: Billionaire Indian financier Uday Kotak has called on Prime Minister Narendra Modi to push through a radical shake-up of the country’s state-dominated banking industry, by diluting government stakes and allowing private banks to take over public-sector operators.
  • Financial Times: Carpetright founder Lord Harris of Peckham has rolled back his plans to step down from the company’s board this autumn, announcing that he will stay on as a non-executive chairman.
  • Financial Times: Tate & Lyle’s finance director is quitting the sweeteners group after a turbulent year for the British company, during which its share price fell 15%.
  • Financial Times: Supermarket group J Sainsbury has hired 500 staff from Travelex, the foreign exchange company, as it seeks to expand the travel money operation of its banking division.
  • Financial Times: Carnival Corporation sailed towards smoother waters after reporting better than expected earnings, helped by a sustained marketing push and a better economic climate.
  • Financial Times: Schroders, the second-largest asset manager in Europe, has joined a group of high-profile entrepreneurs who are investing $32 million in online wealth manager Nutmeg, touting it as the next big growth story in discretionary fund management.
  • Financial Times: Shares in Croda fell almost 10% after the speciality chemicals maker became the latest manufacturer to warn about the effects of a strong pound.
  • Financial Times: Value fashion retailer Jane Norman has fallen into administration for the second time in three years after its plan to operate from a smaller estate failed to reverse its fortunes.
  • Daily Mail: Home sales hit their highest level of the year last month but bankers warned ‘the heat appears to be coming out of the housing market’ following a fall in mortgage lending.
  • Daily Mail: Another senior Tesco executive has checked out as the troubled supermarket giant braces itself for a heated showdown with investors at its annual shareholder meeting on Friday; it is understood that UK general merchandise director Neela Mukherjee has been forced out following a reshuffle of the management team earlier this month.
  • The Guardian: The US Food and Drug Administration has ordered GlaxoSmithKline to review its manufacturing operations globally after finding that its Canadian subsidiary violated quality requirements during the manufacture of its flu vaccine FluLaval.
  • The Guardian: Japanese prime minister Shinzo Abe outlined his long-awaited growth strategy on Tuesday spearheaded by promises of expanded childcare to bring more women into the workforce and an investment boom.
  • The Guardian: Almost a third of investors have failed to back the re-election of Lord Chadlington as chief executive of public relations company Huntsworth.
  • The Guardian: The UK has seen a sharp fall in its foreign investment, missing out on the trend of recovering flows around the world, according to a UN agency.
  • The Guardian: London and the south-east take the top rankings in the UK for education, income, employment and health, according to a report that underscores the country's north-south divide; Northern Ireland scores top in the UK for air quality, while south-west England comes out best for broadband access and voter turnout, according to the Organisation for Economic Co-operation and Development.
  • The Guardian: The Money Advice Service, set up by the government, said that the average "social debt" among overspending adults is £1,260, with more than half of people saying they spend more than they plan to on social occasions.
  • The Independent: Japanese carmakers Nissan, Honda and Mazda have recalled close to three million vehicles citing faulty airbags that could potentially explode and send pieces flying inside the car.
  • The Daily Telegraph: US has taken first steps to ending 40-year oil export ban as government tells two companies they can sell ultra-light oil abroad as country is gripped by fracking boom.
  • The Daily Telegraph: Former Credit Suisse banker David Higgs pleaded guilty to charges of falsifying the lender's records.
  • The Daily Telegraph: Iberdrola, energy company has questioned Tory proposals to cap onshore wind in favour of more expensive offshore wind would push up bills.

Share tips, comment and bids

  • Financial Times: Reliance Communications, the heavily-indebted telecommunications flagship of Indian billionaire Anil Ambani, has confirmed it plans to seek as much as $500 million from a share issue this week, in the latest test for the country’s buoyant equity markets.
  • Financial Times: US buyout group KKR has agreed to acquire a third of the international wind and solar power business of Spain’s Acciona, in one of Europe’s biggest renewable energy deals this year.
  • Financial Times: Woolworths has offered to buy the 12% stake in Australian fashion retailer Country Road that it does not own, from Solomon Lew, the retail billionaire, in a bid to stop him opposing its much larger A$2.2 billion (US$2 billion) planned takeover of David Jones.
  • Financial Times: HSBC has continued its retreat from some of its extensive banking empire by selling a portfolio of Swiss private banking assets to Liechtenstein’s LGT Group.
  • Financial Times: Ontex, the Belgian maker of nappies and adult pads is to return to the market with an enterprise value of €1.8 billion by listing on the Euronext exchange in Brussels.
  • Financial Times: Bowleven, the Africa-focused oil and gas explorer, is to sell a 50% stake in a key project off the Cameroon coast for $250 million to Russia's Lukoil.
  • Daily Express: One of Britain’s biggest private hospital operators Spire Healthcare is about to join the rush of companies listing on the stock market with a flotation estimated at £1 billion.
  • Financial Times (Lex): BG Group: the good part.
  • Financial Times (Lex): Walgreens: true love.
  • Financial Times (Lex): Miners: robots in disguise.
  • Financial Times (Lex): Australian retail: David Jones.

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