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Wednesday Papers: Carney warns on risks in financial system

Wednesday Papers: Carney warns on risks in financial system

Top stories

  • Financial Times: Mark Carney unveiled a radical shake-up of the Bank of England on Tuesday, introducing sweeping changes to senior management and operations as he warned risks were building up in housing markets and the international financial system.
  • The Guardian: The UK chancellor and the governor of the Bank of England have issued separate warnings on the eve of the budget that difficult decisions lie ahead if Britain is to secure its objective of a resilient economy.
  • Financial Times: Russian President Vladimir Putin completed on Tuesday the first annexation of another European country’s territory since the second world war by absorbing Ukraine’s Crimean peninsula into the Russian Federation with the stroke of a pen.
  • The Independent: Barclays’ top bankers were under fire again yesterday as the bank confirmed it had paid £31.8 million in share-based bonuses.
  • Financial Times: George Osborne will use Wednesday’s Budget to announce a cap on more than £100 billion of welfare spending, as he tries to set a political trap for Labour at the next election.

Business and economics

  • Financial Times: George Osborne is to scrap the current £1 coin and replace it with a 12-sided version reminiscent of the old threepenny bit, in a Budget move that may appeal to the patriotism and nostalgia of a key section of the electorate.
  • Financial Times: Wall Street banks are preparing to divide up one of the largest fees yet for handling an initial public offering, with banks expecting that Alibaba, China’s e-commerce giant, will pay them $400 million for its stock listing.
  • Financial Times: Shares in Asos plunged by up to 20% on Tuesday after investors balked at signs of slowing UK sales growth for the online retailer, lower than expected margins, and increased losses from a push into China.
  • Financial Times: Dunlop will end 125 years of tyre making in the UK as the company closes its Birmingham factory, amid claims that it cynically blamed the move on a land dispute with carmaker Jaguar Land Rover.
  • Financial Times: China’s central bank and one of its largest state lenders are holding emergency talks over whether to bail out a defaulting real estate developer.
  • Financial Times: Germany’s constitutional court on Tuesday lifted a cloud of uncertainty hanging over the eurozone bailout fund by ruling that it was legal, as long as the German parliament had enough supervision rights.
  • Financial Times: Royal Dutch Shell has reorganised its lossmaking American shale gas and oil operations into a single business in an attempt to turn around their performance, the company has said.
  • Financial Times: Concerns over the fortunes of Britain’s biggest supermarkets intensified after J Sainsbury reported its first fall in underlying sales for nine years and a broker slashed its forecasts for Tesco’s profit this year to below £3 billion.
  • The Independent: Sainsbury's boss Justin King leaves on sour note as trading climate turns nasty and the challenges facing successor Mike Coupe look no less daunting.
  • Financial Times: Biggest US banks braced for the fourth riound of stress tests.
  • Financial Times: Viacom and Google have settled a $1 billion copyright infringement suit tied to Google’s YouTube digital video service, ending a seven-year battle that came to symbolise old media’s fear of being eclipsed.
  • Financial Times: Apple updated its lower-cost iPhones and iPads on Tuesday, effectively cutting prices as it faces increased competition at the lower end of the mobile market.
  • Financial Times: New York’s top securities regulator has opened an investigation into US stock exchanges and other trading platforms to determine whether certain services they provide give high-speed traders an unfair advantage.
  • Financial Times: Volkswagen has refused to raise its €6.7 billion bid for the remainder of Scania that it does not already own.
  • Financial Times: Porsche is set to completely manufacture a car outside Germany for the first time, marking a departure from its proud brand claim that all its vehicles are “Made in Germany”.
  • Financial Times: Clive Cowdery has set his sights on setting up another insurance consolidation vehicle, this time involving deals in Europe, after the serial entrepreneur bowed out from Resolution, the FTSE 100 group he founded.
  • Financial Times: Cairn Energy has suspended its $300 million share buyback scheme in response to a freeze imposed by India’s tax authorities on any further selldown in its remaining stake in assets in the country.
  • Financial Times: Ladbrokes’ embattled chief executive Richard Glynn last year received a package worth £4.7 million, an 85% increase on his 2012 remuneration.
  • Financial Times: F&C Asset Management will suffer another large outflow of funds because Friends Life has pulled a mandate to manage £14.5 billion from the group, which is in the process of being taken over by Bank of Montreal.
  • Financial Times: Revenues at IG Group shot up in the third quarter as the UK’s largest spread betting provider benefited from improved market conditions.
  • Financial Times: Speedy Hire shares fell as much as 20% on Tuesday after the equipment rental company downgraded its profit expectations for the full year.
  • Financial Times: Wolf Minerals said it was on track to start tungsten production next year at Britain’s first new metals mine in decades after it raised almost £100 million in equity.
  • Financial Times: Global recorded music industry revenues fell 4% last year, dashing hopes that fast-growing digital services such as Spotify would offset the relentless decline in CD sales.
  • Financial Times: Caesars Entertainment has become the first foreign company to win provisional approval to open a casino in South Korea, as the country jostles with Asian rivals for a share of the booming market in Chinese gambling tourism.
  • Financial Times: Antofagasta rewarded investors with a big dividend in spite of lower earnings as copper prices fell and costs rose for the Chile-focused miner.
  • Financial Times: The future of Leeds United was thrown into uncertainty after the investor who had agreed to buy the Championship club was convicted in a Sardinian court on a charge of tax evasion.
  • Financial Times: Hertz, the US car rental business, has announced plans to spin off its construction equipment hire division into a separate, publicly traded company that will be valued at close to $5 billion.
  • Financial Times: Shareholders have voted to unseat the board of CommonWealth Real Estate Investment Trust, led by the Portnoy family, in a closely watched battle over corporate governance in the property sector.
  • Financial Times: Och-Ziff, the hedge fund group, warned that it could face a hit to its financial results from a Department of Justice investigation into alleged corruption in Libya before the fall of Muammer Gaddafi.
  • The Independent: Ivan Glasenberg, the billionaire chief executive of GlencoreXstrata, took no bonus or pay rise last year, getting by instead on his $182 million (£109 million) share of the dividend payout.
  • The Guardian: Poverty will become ever more entrenched in Britain if the government does not maintain social spending to protect the most vulnerable, the OECD has warned.
  • The Guardian: Simon Nixon, the founder of Moneysupermarket.com, has sold £130 million of shares in the financial comparison website.
  • The Guardian: General Motors named a new vehicle safety chief on Tuesday after CEO Mary Barra confessed “terrible things” had happened at the company and recalled another 1.5 million cars amid investigations into a series of fatal crashes.
  • Daily Express: Spirit Pub Company boosted sales by 6.1% in the eight weeks to 1 March in its managed inns, which also include John Barras and Flaming Grill, as diners avoided expensive restaurants.
  • Daily Mail: Budget boost for 1.9 million working families: Osborne extends childcare tax break to £2,000.
  • The Daily Telegraph: Music industry says Google failing on piracy following a 3.9 % fall in global music sales.
  • The Daily Telegraph: New homes is headed to beat pre-recession peak as the construction industry gathers pace with Berkeley Group plans to build 30% more homes this year than in the 2007.

Share tips, comment and bids

  • Financial Times: New UK banks are preparing for stock market listings aimed at raising a total of £10 billion - in an indication of investor demand for “challengers” in a recovering sector.
  • Financial Times: Li Ka-shing’s high street health and beauty chain, AS Watson, is likely to choose London and Hong Kong for its $5 billion-plus share sale.
  • Financial Times: Two more companies, Polypipe and SafeCharge, have confirmed their intention to float in London, adding to the City’s strongest start to the year for initial public offerings since 2007.
  • The Guardian: The discount fashion website M and M Direct has appointed bankers to look at a potential sale or flotation that could value the business at up to £150 million.
  • The Daily Telegraph: US fashion retailer J Crew could push ahead with initial public offering.
  • Financial Times (Comment): Chinese companies face deleveraging, not crisis; business is getting much tougher for Chinese companies from banks to property developers, but it is facile to think that they are headed for a replay of the 2008 financial crisis.
  • Financial Times (Comment): Price wars threaten to reshape landscape of UK supermarkets.
  • Financial Times (Lex): United Rentals: if the company can squeeze some gains, there is even more upside for what already has been a great success story.
  • Financial Times (Lex): Scania: no truck with VW; board takes a tough approach to €6.7 billion bid.
  • Financial Times (Lex): Asos: will UK online retailer’s valuation now become more realistic?
  • Financial Times (Lex): Antofagasta: how best to get cash out of a copper miner?
  • Financial Times (Lex): FactSet: even if the analytics group’s customers are more confident, competition remains a perennial threat.

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