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View the article online at http://citywire.co.uk/wealth-manager/article/a725543

Tuesday Papers: Gold set for biggest annual drop in 30 years

by Himanshu Singh on Dec 24, 2013 at 03:39

Tuesday Papers: Gold set for biggest annual drop in 30 years

Top stories

  • Financial Times: Gold slipped back below $1,200 a troy ounce on Monday as investors closed lossmaking positions and continued to fret about the US Federal Reserve’s decision to roll back its bond-buying programme.
  • The Independent: Britain’s highest paid bankers are on course to receive an income tax cut of almost £100 million this year following George Osborne’s decision to reduce the top rate from 50 pence to 45 pence.
  • The Guardian: BAE Systems has secured a $1 billion contract to upgrade South Korea's fleet of F16 fighter jets, in a fillip for the UK arms manufacturer after it lost out on a much more lucrative deal with the United Arab Emirates.
  • Financial Times: LinkedIn, the online professional network revolutionising recruiting, plans to use the data it has amassed from more than 250 million curricula vitae to help companies improve their hiring.
  • The Guardian: Asia Resource Minerals, the coal-mining company previously known as Bumi, has appointed Chris Walton, the former finance director of airline easyJet, as its new chairman.
  • Financial Times: Philips has begun an internal examination of its Russian operations and reworked its distribution contracts there after a complaint filed to the US Treasury in October accused its US-based medical equipment arm of selling to a company recently headed by Artem Kuznetsov, one of the 18 Russian citizens listed this April as a target of the sanctions.
  • Financial Times: BTG Pactual is to double its London staff by the end of next year, as the Brazilian investment bank embarks on a global hiring spree to build its fledgling commodities business.
  • The Guardian: Nearly all staff at troubled Canberra-based Brindabella Airlines have been told they're out of a job just two days before Christmas.
  • Financial Times: Treasury has announced plans to lift a ban on the transfer of poor value “zombie” Child Trust Fund accounts into Junior Individual Savings Accounts.
  • The Daily Telegraph: House prices to rise 8% in 2014; Halifax, UK's biggest mortgage lender, claims there are no signs a house price bubble exists despite strong growth.
  • The Daily Telegraph: Royal Mail shares dip as it enters FTSE 100.

Business and economics

  • Financial Times: The American Bankers Association on Monday threatened to file a lawsuit against US regulators if they do not suspend a provision in the Volcker rule that has sparked protests among small lenders.
  • Financial Times: Jeffery Ubben, the founder of ValueAct Capital that forced its way on to Microsoft’s board, is warning investors piling into similar activist hedge funds that they could be disappointed, as more companies pre-empt activist attacks with shareholder-friendly policies.
  • Financial Times: The International Finance Corporation, the World Bank’s private sector lending arm, has toughened rules for staff engagement with client companies after controversy over the way two executives jumped to groups that had received investments from the body.
  • Financial Times: China’s cash squeeze has worsened despite the central bank’s repeated attempts to calm financial markets with emergency money injections.
  • The Independent: Executives at the scandal-struck government contractor Serco are still unclear over whether the company has been forgiven for a series of failures after two Ministry of Defence deals were delayed to 2014.
  • The Guardian: The Serious Fraud Office has opened a formal criminal investigation into allegations of bribery and corruption at aircraft engine maker Rolls-Royce.
  • The Independent: The boss of the Sellafield nuclear site Tony Price has blamed a “long and gruelling” cross-examination for providing MPs with inaccurate information.
  • Financial Times: Jack Dorsey, the chairman of Twitter, has been elected to the Walt Disney board, becoming the latest in a succession of Silicon Valley heavyweights to join the media company.
  • The Guardian: Marks & Spencer has apologised after a Muslim member of staff refused to sell a customer alcohol; the retailer said that where employees had religious beliefs that restricted what foods or drinks they could handle, it tried to place them in a "suitable role".
  • The Independent: Smythson, the leather goods and stationery brand that counts Samantha Cameron as a consultant, reported a £1.6 million loss for the year to April – down from a £1.4 million profit for the previous year.
  • The Daily Telegraph: Businesses raised £1.02 billion through the government's Enterprise Investment Scheme in the year to the end of March 2012, up from £545 million in the previous year, according to latest figures from HMRC.
  • Daily Mail: The Bank of England could raise interest rates as early as next spring in the wake of a “supercharged” jobs revival.
  • Financial Times: Uralkali, the Russian potash company, has appointed Dmitry Osipov to replace Vladislav Baumgertner who last month was extradited from Belarus to Russia and detained in Moscow.
  • Financial Times: Premier Foods is in talks with trustees of its pension fund about a deal to reduce its liabilities as part of a corporate restructuring which the heavily-indebted company said on Monday could involve a rights issue next year.
  • The Daily Telegraph: BP duo quit after conflict of interest probe; David Odom, chief executive of the Deepwater Horizon Economic Claims Centre, and Kirk Fisher, its chief operating officer, quit last week. 

Share tips, comment and bids

  • The Guardian: The Spanish utility provider Iberdrola has agreed to sell its 50% stake in the British nuclear consortium NuGen to Japan's Toshiba in a deal that will boost the UK's nuclear construction plans.
  • Financial Times: The blow-for-blow fight to consolidate America’s cut-price menswear market resumed on Monday as Jos A Bank rejected a $55-a-share offer from Men’s Wearhouse just weeks after being spurned in its own pursuit of its rival.
  • Financial Times: Shares in Hyundai Group companies surged on Monday after the South Korean conglomerate announced plans to sell its financial units to repay mounting debts, as part of moves to weather a worsening liquidity crunch.
  • Financial Times: Tribune has struck an agreement with Sony to acquire Gracenote, a music technology and data service, in a $170 million deal that is part of the Chicago media company’s efforts to broaden its entertainment data business.
  • The Daily Telegraph: Big Brother creator Endemol is to test out new shows in Israel after buying broadcaster Reshet for £17.5 million.
  • Financial Times: Partners at Booz & Co, the consulting group, have approved a plan to merge with PwC.
  • Financial Times (Comment): If bankers were hoping for a period of economic calm – and some respite from five stormy years of post-crisis reforms – 2014 looks set to disappoint.
  • The Guardian (Comment): A formal investigation by the Serious Fraud Office into allegations of bribery and corruption sounds serious - and it is. So why were Rolls-Royce's shares, even after a 43% gain this year, completely untroubled? There are at least three reasons.
  • The Guardian (Comment): The miners of northern Brazil live by the laws of power, honour, money and lust. But sometimes, karma asserts itself too.
  • The Daily Telegraph (Comment): Whether Mark Carney can calm the already plainly overheating housing market without having to raise interest rates remains to be seen.
  • The Daily Telegraph (Comment): The credit squeeze in China is no longer a local issue and any misjudgment by the central bank will have global ramifications.
  • Financial Times (Lex): European manufacturers: Manufacturing shares have outperformed recently. This is partly due to the better economic outlook, but also to some strong self-help
  • Financial Times (Lex): Sovereign debt: It is hard to believe low frontier yields. But it is harder to believe bigger emerging sovereigns such as Honduras are taper-proof
  • Financial Times (Lex): US retail: As online shopping becomes more sophisticated, retailers’ technology spend is rising and that has an effect on company earnings
  • Financial Times (Lex): Technology stalwarts: Although revenue growth has disappointed at tech’s three elderly statesmen – IBM, Cisco and Oracle – their scale and margins still have benefits

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