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View the article online at http://citywire.co.uk/wealth-manager/article/a742757

Tuesday Papers: Russia braced for $70 billion in capital outflows

by Himanshu Singh on Mar 25, 2014 at 02:56

Tuesday Papers: Russia braced for $70 billion in capital outflows

Top stories

  • Financial Times: The Russian government is braced for the country’s capital outflows to soar to $70 billion in the first three months of the year as investors seek cover from the fallout of President Vladimir Putin’s Ukrainian land grab.
  • The Guardian: The Co-operative Group is facing a demand to pump more cash into its troubled banking arm which has admitted it needs to find an extra £400 m to pay compensation for mis-selling to customers.
  • The Independent: Hedge funds manage $470 billion (£285 billion) in the UK, with 82% of the assets controlled by just 20 large firms, the City regulator revealed yesterday.
  • The Guardian: Regulatory roadblocks have delayed Microsoft's €5.4 billion (£4.6 billion) acquisition of Nokia's handset business, but the software company expects the deal to be concluded in April.
  • The Guardian: China's factories cut their output in the first three months of the year, according to a survey of the manufacturing sector that has sparked warnings of slower growth in the US and the eurozone.
  • Financial Times: Britain’s health department does not know exactly how much money is lost to fraud each year in the NHS, it has emerged, after an investigation suggested that up to £7 billion was disappearing through mistakes or criminal schemes.

Business and economics

  • Financial Times: The US is losing its edge as an employment powerhouse, where most people have a job or are looking for one, after its labour participation rate fell behind the UK’s.
  • Financial Times: Pay levels will fall at investment banks as profit margins are squeezed by regulation that is transforming their flagship business of fixed income trading, according to the head of BNP Paribas.
  • Financial Times: Lenders are growing wary about backing luxury residential property developments in London, fearing that a glut of schemes may swamp the market and hurt prices.
  • Financial Times: Siemens will invest £310 million in a wind turbine assembly plant in Hull in a substantial boost to northern manufacturing and the coalition government’s shaky record on green energy.
  • Financial Times: An unprecedented number of housebuyers are opting for fixed-rate mortgage deals, as lenders start to increase rates from rock-bottom and UK property prices continue to rise.
  • Financial Times: Eastern European governments are looking to use the prospect of US natural gas exports as a bargaining chip to secure lower prices from Russia’s Gazprom in negotiations over new long-term contracts.
  • Financial Times: Chevron is set to overtake ExxonMobil in terms of capital and exploration spending as Exxon is aiming for stability, while Chevron is going for growth.
  • Financial Times: Senior management at Pets at Home sold nearly £15 million of shares into its initial public offering, with management who bought in before the float pocketing an 18-fold return on their investment.
  • Financial Times: Europe could be set to reduce its dependence on Chinese tungsten, a vital metal for many industrial applications, after higher prices and steady demand sparked renewed interest in mining closer to home.
  • Financial Times: Police in Naples have arrested two former managers of Finmeccanica, Italy’s state-controlled defence and industrial group, in connection with a long-running corruption investigation into its Sistri waste-tracking system.
  • Financial Times: Direct sales companies are facing tougher oversight of their operations in China after Beijing fined Nu Skin Enterprises, the US direct sale skincare and dietary supplement company, for illegal product sales.
  • Financial Times: Marks and Spencer has lost two of its most experienced directors in the latest departures to hit the high street retailer; Clem Constantine, property director, and Darrell Stein, IT director, have decided to leave the business.
  • Financial Times: Equitable Life policyholders who have stuck with the insurer that almost collapsed in the early 2000s are to be rewarded for their patience after the mutual unveiled plans to hand back more surplus funds.
  • Financial Times: Vestas dangled the prospect of its first dividend in more than a decade as the Danish group celebrated its return as the world’s largest manufacturer of wind turbines.
  • Financial Times: Claude Dauphin, is to step down from the day-to-day running of Trafigura, the commodities trading house, passing the baton to a new generation of senior managers and executives.
  • Financial Times: Heavy selling in biotechnology stocks on Monday heightened nervousness over one of the US stock market’s best-performing sectors, as investors debated whether its multiyear rally had reached its peak.
  • Financial Times: Pawnbroker Albemarle & Bond admitted defeat in its fight to keep the business going after trying everything from negotiating with lenders to melting down some of its gold stocks in an attempt to stave off collapse.
  • Financial Times: Centamin held out the prospect of instituting a dividend as the UK-listed gold miner said investment at its Egyptian project was almost complete.
  • Financial Times: Kentz, the FTSE 250 engineering and services group, pulled away from rivals in the sector by announcing a 13% increase in profits for last year.
  • Financial Times: Standard & Poor’s has cut Brazil’s sovereign debt rating to one notch above junk-bond status, citing concerns over the country’s economic credibility, fiscal management, and weak growth in the years ahead.
  • The Independent: One of Britain’s biggest banks, Lloyds', has cost victims of the payment protection insurance (PPI) scandal tens of millions of pounds by wrongly cutting their compensation awards, a new investigation claims.
  • The Independent: Thames Water has started the hunt for international investors to fund the construction of its controversial £4 billion super-sewer across London.
  • The Independent: A taste for Scottish salmon and British pork by China’s emerging middle classes drove UK food and drink exports 5% higher last year to £12.8 billion.
  • The Guardian: Bailed-out Lloyds Banking Group has handed its top management team – including chief executive António Horta-Osório – bonuses potentially worth more than £27 million.
  • The Guardian: Asda is to cut around 200 jobs as it forges a new five-year plan to tackle increasing competition from rival supermarkets and discounters.
  • The Guardian: Shares in Carphone Warehouse were marked down after Phones4u emerged as a possible rival for the affections of electricals group Dixons.
  • Daily Mail: Aviva boss Mark Wilson to pocket bumper £2.6 million pay package including £1.1 million bonus.
  • Daily Mail: Standard Life and NFU Mutual have both announced that customers who bought annuities in the run-up to the Government's momentous Budget announcement on pensions can have their money back.

Share tips, comment and bids

  • Financial Times: Monitise, one of UK’s highest profile tech groups, is to raise about £100 million as part of an overhaul of its business model aimed at increasing its revenues in the evolving mobile payments industry.
  • The Daily Telegraph: RBS is reported to be in talks with one of Japan's largest banks about the potential sale of its Citizens US retail banking arm.
  • The Guardian: Amazon has struck a deal with the Barclay brothers, owners of the Ritz hotel and Telegraph newspaper titles, to acquire a stake in Yodel, which was recently voted Britain's worst parcel delivery service for the second year running.
  • Financial Times: Finsbury Food said it was in talks to make an acquisition as the maker of celebration cakes and organic bread revealed it had spent £260,000 on an aborted deal last year.
  • Financial Times: Cala has acquired developer Banner Homes for £200 million in one of the biggest deals within the sector since the financial crisis, as the upmarket housebuilder looks to build upon its ambitious expansion plans.
  • Financial Times: Palo Alto Networks, a Silicon Valley security company, has bought an Israeli cyber defence company for about $200 million, in a deal that highlights the increasing mergers and acquisitions activity in the sector.
  • Financial Times: Box, the enterprise cloud storage company, said it hopes to raise $250 million in an initial public offering as it revealed revenues that doubled last year but were outpaced by its losses.
  • Daily Express: SafeCharge, online payments service provider, will raise £60 million when it floats early next month with a market value of up to £230 million.
  • Financial Times (Lex): Exxon / Chevron: energy groups have divergent plans for growth in oil and gas production.
  • Financial Times (Lex): Morgan Stanley / Rosneft: sale of bank’s oil trading unit is a geopolitical risk.
  • Financial Times (Lex): Finmeccanica: daunting challenges lie ahead despite its shares doubling since last July.
  • Financial Times (Lex): Chinese banks: this week’s earnings reports may force investors to reconsider.
  • Financial Times (Lex): Oil rigs: with companies cutting capex, rates for rigs are likely to fall.

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