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View the article online at http://citywire.co.uk/wealth-manager/article/a754366

Tuesday Papers: Pay rises for senior bankers hit 10%

by Himanshu Singh on Jun 03, 2014 at 03:39

Tuesday Papers: Pay rises for senior bankers hit 10%

Top stories

  • Financial Times: Banking chief executives received an average pay rise of 10% last year as US banks handed their heads much more generous packages than their European rivals, highlighting the widening remuneration gap on either side of the Atlantic.
  • Financial Times: The Obama administration has launched the most ambitious plan to combat climate change in US history by proposing to regulate greenhouse gas emissions from power stations.
  • The Guardian: The chancellor, George Osborne, is expected to announce measures to increase oversight of the £3 trillion-a-day foreign exchange market as investigations continue into the latest allegations of benchmark-fixing in the City.
  • The Independent: Manufacturers are ramping up production to meet demand at home and abroad after enjoying one of their strongest growth spurts for two decades, industry watchers declared.
  • The Daily Telegraph: The European Commission has called on the Chancellor to “deploy appropriate measures” to rein in Help to Buy scheme because of rising house prices.
  • The Daily Telegraph: Google plans to spend $1 billion to buy 180 satellites to help hundreds of millions of people get online.
  • Financial Times: KKR, the US private equity group, has shut down its $510 million equities hedge fund just three years after signing up a group of former Goldman Sachs proprietary traders to run it, in the latest venture launched by the investment bank’s alumni to fold.
  • Financial Times: Private equity groups Montagu and Astorg are to buy back Sebia four years after selling the French medical testing company to private equity house Cinven, in a move highlighting a scarcity of buyout opportunities in Europe.
  • The Guardian: The number of mortgage approvals has fallen to a nine-month low in a sign that tough new affordability tests for housebuyers are having an impact on the housing market.

Business and economics

  • Financial Times: Tullett Prebon, the UK interdealer broker, is in advanced talks to appoint a successor to chief executive Terry Smith, one of the City's most well-known figures.
  • Financial Times: Lawyers and accountants who work for organised criminals will face five-year jail terms under a crackdown on white-collar professionals who profit from crime while turning a blind eye.
  • Financial Times: Wm Morrison has been found to be in breach of the groceries code by the Groceries Code Adjudicator after it overcharged suppliers.
  • Financial Times: G4S, the global security company, came under further pressure on Monday when a UK government-funded watchdog agreed to investigate its activities in Israel and the occupied Palestinian territories.
  • Financial Times: The UK-listed, Dublin-based speciality drugmakee Shire has put in place a $5 billion credit facility arranged by Citigroup that it will use to finance an acquisition of the New Jersey-based NPS Pharmaceuticals.
  • Financial Times: The threat of a $10 billion fine for BNP Paribas by US authorities for alleged sanctions violations has prompted an outcry in France, putting pressure on President François Hollande to raise the issue when he meets Barack Obama, the US president, this week.
  • Financial Times: Alexander Friedman is to step down as UBS’s global chief investment officer after three and a half years to pursue “a new opportunity outside the firm”.
  • Financial Times: Private equity fund 3i has lost much of its investment in Shearings, the UK’s largest coach tour operator, with a sale to its management team.
  • Financial Times: Bank of America Merrill Lynch has poached Tim Waddell, a veteran of the UK investment banking industry, from rival UBS as banks jostle to win clients amid increasing corporate activity.
  • Financial Times: US multinationals face a threat of “unprecedented taxes on trade and investment” from efforts to close gaps in the international tax rules, according to the Business Roundtable, a US business lobby group.
  • Financial Times: The amount of money flowing out of Bill Gross’s Pimco Total Return bond fund accelerated in May, shrinking the world’s largest fixed income fund to an estimated $229 billion.
  • Financial Times: Barrick Gold built its case for a merger with Newmont Mining on the savings the world’s two largest gold miners by output could extract from their joint holdings in Nevada; now Barrick’s chief executive says that the miner has “moved on” from the aborted merger attempt but insists Nevada remains central to its plans.
  • Financial Times: With banks, telecom operators and technology groups all scrambling to sign up Britain’s tap-happy mobile payers and shoppers, consumers are faced with a bewildering array of mobile payment options.
  • Financial Times: The fast-growing asset management business that Terry Smith, the chief executive of Tullett Prebon will focus on when he departs the UK interdealer broker, stands in stark contrast to the industry he will leave behind.
  • Financial Times: Unify, formerly known as Siemens Enterprise Communications, said it would cut half its workforce as it moves away from network technology and equipment to focus on software and services.
  • Financial Times: The main aviation trade body has cut its forecast for airline profits in 2014 because of concerns about China’s deteriorating economic performance and a slowdown in world trade.
  • The Daily Telegraph: Russian state energy giant Gazprom has given Ukraine more time to pay billions of dollars in gas bills, having received a first payment from the troubled state.
  • Daily Mail: Economists warned of a house price timebomb if the government lending targets on mortgage lending are to be met within the next two-and-a-half years; they fear house prices will continue to accelerate if the Help to Buy mortgage guarantee scheme is as successful as the Treasury hopes.
  • Daily Express: European plane builder Airbus sealed a £950 million order with Air New Zealand yesterday giving a boost to British manufacturing.
  • The Guardian: Female retail workers in the US earn an average of $4 an hour less than their male counterparts, a pay gap that costs those women an estimated $40.8 billion in lost wages annually, according to a new report released on Monday.
  • The Guardian: Willie Walsh, the chief executive of British Airways' parent company, International Airlines Group, has accused airlines of "being embarrassed to make profits" and worrying that passengers would "bitch and moan" about high margins.
  • The Guardian: Walmart remained top of Fortune's annual list of 500 highest-earning US companies on Monday, nearing half a trillion dollars in annual revenue and netting $16 billion.
  • The Guardian: ScottishPower is facing fresh legal and political pressure over one of Britain's biggest extended-warranty scandals, which left more than 625,000 of its customers owed £79 million more than a decade ago, amid allegations that the energy group "deliberately evaded" repaying promised sums.
  • The Guardian: The Bank of England is seeking to revive the market for asset-backed securities, the asset class widely denounced as "toxic sludge" for their role in causing the global financial crisis.
  • The Daily Telegraph: European Central Bank is set to cut interest rates from 0.25% to 0.10% or the discount rate to negative levels as tumbling German inflation clears way for ECB blitz.
  • The Daily Telegraph: Energy minnow Union Jack Oil said there could be 5.4 billion barrels of oil in one exploration block in Leicestershire.
  • The Daily Telegraph: Forever 21 faced £66.5 million loss in the UK.
  • The Daily Telegraph: Tesco, Britain's biggest retailer is to hold extra board meeting and improve reporting to non-executives amid falling sales.

Share tips, comment and bids

  • Financial Times: Chip designer Broadcom said on Monday that it was looking to sell or wind down one of its phone-related divisions, another sign of consolidation in the mobile chip industry as the growth in smartphone sales slows.
  • Financial Times: New World Resources put forward plans for a debt restructuring and rights issue and warned insolvency could otherwise loom as the European coalminer battles low commodity prices.
  • Financial Times: Euronext, the exchanges operator, is set to relist in coming weeks, still driven by its desire to have a central role in the European capital markets.
  • Financial Times: Det Norske, half owned by Aker, an oil services company majority-owned by Norwegian billionaire Kjell Inge Røkke, will increase its production 20-fold and become one of the biggest independent companies operating in the Norwegian part of the North Sea by paying $2.1 billion for Marathon Oil’s local assets.
  • Financial Times: Brandeaux, the property fund manager, is planning to float its student accommodation arm Liberty Living in London, to repay disgruntled investors following the suspension of its Dublin-listed student property fund last July.
  • Financial Times: Infrastructure group Balfour Beatty has sold two of its UK infrastructure assets for nearly £100 million as part of a strategy to recycle equity.
  • Daily Express: Three British firms showed transatlantic deals were not one-way ­yesterday by snapping up US rivals for a combined £227 million; Savills bought New York’s commercial real estate ­services firm Studley, health and safety device maker Halma snapped up California’s Rohrback Cosasco Systems and Entertainment One, the FTSE 250 media group behind children’s ­favourite Peppa Pig, paid £16 million for the Phase 4 Films group of companies.
  • Daily Express: German biopharmaceuticals firm Biofrontera is set to join Aim next month to give its shareholder base a shot in the arm.
  • Daily Express: Beaakdown service RAC is gearing up for a £2billion float despite signs the listings market is running out of gas.
  • The Daily Telegraph: MandM Directset to reveal £170 million IPO.
  • Financial Times (Lex): Shire: fever pitch.
  • Financial Times (Lex): Valeant / Allergan: Ackman taking sides.
  • Financial Times (Lex): Marathon Oil: in the long run.
  • Financial Times (Lex): UK shale: Godzilla.
  • Financial Times (Lex): Argentine bonds: we’ll always have Paris.

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