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Wednesday Papers: Carney vows to overhaul links with City

Wednesday Papers: Carney vows to overhaul links with City

Top stories

  • Financial Times: Mark Carney has vowed to overhaul the Bank of England’s dealings with the City and its governance as he attempts to shore up the bank’s authority amid the escalating scandal over the manipulation of foreign exchange markets.
  • The Daily Telegraph: The BoE has issued warnings that interest rates could rise sixfold in three years as British economy grows faster than any other developed nation
  • The Guardian: Britain's recovery will be the strongest among G7 economies over the first half of 2014, according to the latest predictions from the Organisation for Economic Co-operation and Development.
  • Financial Times: Wall Street’s once lucrative fixed income divisions are set for their worst start to the year since before the financial crisis, with revenue declines of up to 25%.
  • Financial Times: UniCredit announced a record annual net loss of €14bn on Tuesday as Italy’s biggest bank by assets cleaned up its balance sheet by taking big writedowns on bad debts and goodwill ahead of European stress tests.
  • The Guardian: The Co-operative Group, Britain's largest mutual, is in renewed turmoil after its chief executive walked out, branding the organisation as "ungovernable" and raising questions about the future of the 170-year-old supermarket, funeral homes and pharmacy business.

Business and economics

  • Financial Times: Ed Miliband is to vow that a Labour government would only hold an EU referendum before 2020.
  • Financial Times: Scottish ministers are over-optimistic about their country’s likely deficit in three years, the UK Treasury says, leaving a potential £3 billion black hole by the time they hope to become independent.
  • Financial Times: Bill Gross, the embattled head of Pimco, has promised to give his portfolio managers more freedom to express dissent, as he faces mounting questions and criticism from investors, analysts and even a member of his own board of trustees.
  • Financial Times: Companies bringing production back to the UK from overseas could create up to 200,000 jobs in Britain over the next decade, as a small but growing trend gains strength.
  • Financial Times: The European Central Bank is poised to probe €3.7 trillion worth of assets from the biggest lenders in the eurozone as it begins a fresh phase of its asset quality review.
  • Financial Times: Europe’s banking union plans are in danger of unravelling amid a protracted political stand-off over the system for shutting failing banks.
  • Financial Times: Slowing output from the North Sea may require IntercontinentalExchange to add oil grades from beyond the offshore European fields to underpin its flagship Brent crude contract.
  • Financial Times: The controversial chief executive of Ecobank Transnational has been ousted by the bank’s board, bringing an end to a nine-month battle over allegations of mismanagement that have shaken confidence in the pan-African lender.
  • Financial Times: Virtu Financial, the trading firm that this week revealed plans for a US public listing, suffered from material weaknesses in how it accounts for and reports its expenses.
  • Financial Times: Tax authorities have recouped more than £230 million in charges from retired people caught out by the introduction of a cap on lifetime pension savings.
  • Financial Times: Foxtons has capitalised on the soaring London property market and unveiled a special dividend in its first annual results since returning to public markets in September.
  • Financial Times: WeWork, the shared office space provider that is expanding aggressively across the US, now has its sights on London, Amsterdam, Berlin and Tel Aviv as it looks to take advantage of the growth of coworking.
  • Financial Times: Zurich Insurance is to cut about 800 jobs across its global operations as part of chief executive Martin Senn’s drive to improve profitability at the Swiss insurer.
  • Financial Times: Lenovo will inherit a half-empty Chinese factory as part of its $2.3 billion acquisition of IBM’s low-cost server business - because more than half of the workers at the plant have decided to take severance payments.
  • Financial Times: Nestlé has cut its chief executive’s pay by 7%, becoming the latest Swiss company to show pay restraint ahead of tough rules that will give shareholders a binding say on pay.
  • Financial Times: Commodities investors and farmers are on alert after the third official warning in a week of an El Niño weather phenomenon emerging that could affect food and energy markets already reeling from extreme weather in many parts of the world.
  • The Independent: The insurance bill for the floods and storms that besieged Britain over the winter has hit £800 million - and with 1,500 households still exiled from their homes, the total cost will keep growing for some months to come.
  • The Independent: Billionaire Mike Ashley is hoping for the third year in a row to convince Sports Direct shareholders that he deserves a huge bonus which would net the businessman an extra £67 million.
  • The Independent: Britain's manufacturers reported their strongest annual growth for nearly three years with better than expected expansion of 0.4% over the month, leaving the sector’s annual rate of growth at 3.3% - the highest since February 2011.
  • The Independent: Tesco's high-street dominance continues to be eroded, with the latest data showing that the retailer’s market share has slipped to a 10-year low as shoppers desert it for discounters Aldi and Lidl.
  • The Guardian: Lloyds Bank is to book a profit of £1 billion after freezing the pensions of 32,000 workers, provoking accusations of "a disgraceful display of double standards" after it paid £568,000 into the pension pot of its chief executive last year.
  • The Guardian: Ryanair is to sell flights through travel agents for the first time in a decade in an attempt to double its number of business passengers, agreeing a deal with global distribution service Travelport.
  • The Guardian: Samsung will miss out on launch-day sales of its new Galaxy S5 smartphone in its key home market of South Korea, as mobile operators there face a 45-day government sales ban.
  • The Guardian: G4S, the troubled giant private security company, still faces the possibility of criminal proceedings over its alleged overcharging of at least £24 million on electronic tagging and prisoner escort contracts.
  • The Daily Telegraph: Policy Exchange urges George Osborne to speed up Britain's economic recovery by cutting national insurance rates.
  • The Daily Telegraph: Apple pressuring music labels to only use iTunes could harm streaming services such as Spotify.
  • Daily Express: High-street banks may fall foul of the UK’s new competition watchdog amid concerns they still give small and medium-sized companies (SMEs) a raw deal.

Share tips, comment and bids

  • Financial Times: Walt Disney is nearing a deal to acquire Maker Studios in a deal worth $500 million which could rise to as much as $900 million if certain financial conditions are met.
  • Financial Times: Chevron, the US oil group, has raised sharply its expectation of future oil prices and cut its target for production growth, as it highlighted the steep rise in costs in the industry.
  • Daily Mail: Rolls-Royce has agreed a £1.9 billion deal to buy 50-50 joint venture partner Daimler out of their German engine business.
  • Financial Times: Masayoshi Son, chief executive of Japan’s SoftBank, has promised to launch a “massive price war” in the US mobile market if regulators allow him to acquire T-Mobile US and merge it with Sprint.
  • Financial Times: US fund Baron Capital has taken an overall stake of 2.5% of Manchester United after buying up one quarter of all the publicly traded shares in the Premier League champions.
  • The Independent: The Israeli marketing technology company Matomy Media Group is to float on the London stock market as a wave of other firms from Israel look to follow suit.
  • The Independent (Comment): The ‘new’ Barclays must explain why bonuses went up while earnings fell.
  • Financial Times (Lex): Yu’e Bao: how to coin it as an internet money market fund in China?
  • Financial Times (Lex): UniCredit: if revealing €14 billion loss was exercise in deck-clearing, it was thorough.
  • Financial Times (Lex): Vodafone/Ono: is Ono threatening to break up the band?
  • Financial Times (Lex): Staple financing: leave it to investment bankers to spoil a product that benefits both them and their clients.
  • Financial Times (Lex): Puerto Rico: commonwealth’s bonds are risky but investors are enthusiastic.

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