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Wednesday Papers: Citi to pay $7bn to resolve US probe

Wednesday Papers: Citi to pay $7bn to resolve US probe

Top stories

  • Financial Times: Citigroup is set to pay more than $7 billion to resolve a long-running US government investigation into the bank’s sale of mortgage-backed securities, sources said.
  • The Daily Express: Britain economic recovery suffered a setback yesterday with May seeing the biggest monthly fall in manufacturing output for 16 months.
  • Financial Times: Carlos Slim is to break up the América Móvil empire he has built in Mexico over nearly a quarter of a century, selling a large chunk of the country’s fixed-line and mobile assets in the face of a sweeping telecoms shake-up by the government.
  • The Daily Express: US drugmaker AbbVie yesterday ramped up its takeover offer for British rival Shire to £30 billion after its boss flew to the UK to talk to shareholders.
  • Daily Mail: The global slowdown in high-end smartphones has sent Samsung heading for its worst results in two years.
  • The Independent: Unipart, the UK’s largest independent car parts supplier, is close to a rescue deal as Euro Car Parts and Jon Moulton’s Better Capital circle Unipart Automotive.
  • The Independent: Germany’s Commerzbank and Deutsche Bank are set to be the next global banks to begin settlement talks with US regulators, according to reports from New York.
  • Financial Times: Barclays has reshuffled its investment banking team, promoting people to senior positions in Asia, Europe and the US to fill gaps created when executives left after it announced a sweeping restructuring of the underperforming division.

Business and economics

  • The Daily Express: Rolls-Royce, owned by Germany’s BMW, said European sales rose 60% against a year ago, fuelling a 33% rise in group sales to 1,968 cars.
  • The Daily Telegraph: Tungsten posts loss as it invests in growth; Tungsten founder Edi Truell has guided Tungsten through a 'challenging' year, he says, but the technology firm, now also licenced bank, is well placed for future growth.
  • Daily Mail: Airline shares lost altitude after Air France-KLM became the latest European carrier to issue a profit warning.
  • The Guardian: Fierce competition among the major grocers also kept a lid on food inflation, according to the British Retail Consortium.
  • The Guardian: Upmarket US grocer Whole Foods Market saw its losses mount to £14.2 million in the UK last year despite a surge in sales as it benefits from shoppers' hunt for better quality food.
  • Financial Times: UK shop prices fell in June at their fastest rate for at least eight years as the impact of the strong pound and the supermarket price war continued to feed through on to the high street.
  • The Daily Express: Retail giant Marks & Spencer admitted it was years behind rival fashion chain Next yesterday as shareholders vented their anger over another slump in sales.
  • The Daily Telegraph: Sainsbury's boss says farewell after 10 years at the helm; Justin King will step down as boss of the supermarket at its annual meeting.
  • Financial Times: Market rules that have fuelled the need for speed in trading should be overhauled to restore investor confidence, stock exchange executives and high-frequency trading participants told US senators on Tuesday.
  • The Daily Express: Housebuilder Bovis Homes forecast higher profits and voiced confidence that demand would hold up despite a mortgage lending clampdown.
  • Financial Times: IEX Group, the US equity trading venue that aims to level the playing field between high-frequency traders and traditional investors, has bumped up the size of its planned fundraising to $75 million, after receiving strong backing from investors.
  • The Daily Telegraph: Dunelm, the British home furnishings retailer, grew its sales by 7.8%, but shares were weighed down by unexpected expansion outlays.
  • Financial Times: Alcoa, the US aluminium group, reported second-quarter profits well ahead of analysts’ expectations thanks to a sharp turnround in the performance of its commodity metal business.
  • Daily Mail: The Post Office is set to enter the mobile market this autumn with a tie up with EE, it announced yesterday.
  • The Independent: The Vatican's secretive bank, formally called Institute for Religious Works, has reported a huge decline in profits and blocked thousands of accounts following an annus horribilis for the institution, marred by allegations of corruption and money laundering.

Share tips, comment and bids

  • The Daily Telegraph (Questor share tip): Churchill China reports smashing sales; UKs leading tableware manufacturer reports encouraging trading on recovery in hotel and restaurant sector.
  • The Daily Telegraph: Short sellers circle Monitise amid profit warning; shares in mobile banking company fall as much as 22% as it becomes one of UK's most shorted stocks.
  • Daily Mail (City Focus): The success of Britain’s aerospace and defence renaissance will be on display next week when industrial giants from across the country convene for the biennial Farnborough International Airshow.
  • Daily Mail (Comment): To read some headlines about Marks & Spencer one might imagine it was time for Marc Bolland to commit hara-kiri.
  • The Independent (Comment): How appropriate that the Business Secretary, Vince Cable, appears before the House of Lords Economic Affairs Committee to answer questions on foreign takeovers when there’s one in the offing.
  • Financial Times (Lex): AbbVie / Shire: AbbVie’s case for the deal is that with Shire’s products it would be a more diverse, less risky company, but it may not be able to bid much higher.
  • Financial Times (Lex): Air France-KLM: Chief executive experiences queasy feeling after profit warning, but it is restraining the urge to increase capacity on competitive Atlantic routes.
  • Financial Times (Lex): Samsung hopes its future lies in devices for the Internet of Things. Meanwhile, investors may still hope for a release of some of its $60 billion cash pile.

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