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View the article online at http://citywire.co.uk/wealth-manager/article/a762083

Wednesday Papers: Carney blasts BIS for calling for rate rises in a 'vacuum'

by Himanshu Singh on Jul 16, 2014 at 03:30

Wednesday Papers: Carney blasts BIS for calling for rate rises in a 'vacuum'

Top stories

  • The Daily Telegraph: The Governor of the Bank of England has rejected the Bank for International Settlements' call to raise interest rates faster saying the recommendation was "outside political and economic reality".
  • Financial Times: David Cameron will attempt to seize control of one of Europe’s top economic portfolios after his most sweeping cabinet reshuffle in four years injected new urgency into Britain’s drive to reform the EU.
  • The Guardian: Food price rises and delayed summer clothes sales by high street retailers lifted Britain's inflation rate to a five-month high in June, well above forecasts.
  • The Independent: Payday lenders will be forced to limit how much they charge under new cost cap published this morning by the Financial Conduct Authority; the City Watchdog said, from 1 January, interest and fees charged by short-term lenders must not exceed 0.8% per day of the amount borrowed.
  • Financial Times: Phones and iPads moved an important step towards becoming staples of modern working life on Tuesday as Apple sealed a groundbreaking alliance with IBM to turn its gadgets into fully business-friendly devices; the partnership, intended to increase the security and functionality of Apple’s mobile devices for corporate users, is a mark of how deeply “consumerisation” is reshaping corporate technology markets.
  • The Guardian: Goldman Sachs and JP Morgan reported better-than-expected earnings on Tuesday even as poor trading conditions and a sluggish economy continued to be a drag on the Wall Street banks’ profits.
  • The Independent: Global bank regulators today announced plans to massively shake-up the way foreign exchange benchmarks are set, following the latest rigging scandal to hit financial markets; the Financial Stability Board, chaired by Bank of England Governor Mark Carney, found that the two main currency fixes - London’s 4pm and Frankfurt’s 2.30pm - were open to abuse.

Business and economics

  • Financial Times: Bank of America is increasing the number of junior staff it takes on this year, in an attempt to improve the work/life balance for its young bankers following the death of a summer intern in London last year.
  • Financial Times: London mayor Boris Johnson is set to be given the power to acquire land owned by all public bodies in the capital in order to sell it to housing developers, after coalition government peers tabled an amendment to parliamentary legislation.
  • Financial Times: House prices are experiencing double-digit percentage rises across the UK, led by rampant growth in London, according to official figures.
  • Financial Times: Britons are taking out mortgages with longer repayment periods as they pay for more expensive properties, creating vulnerabilities in their finances, Bank of England policy makers have warned.
  • Financial Times: Tens of thousands of UK taxpayers who took part in tax-saving schemes over the past decade learned on Tuesday that they face bills totalling billions of pounds.
  • Financial Times: Yahoo has made a deal to keep a greater share of its stake in Chinese ecommerce group Alibaba when it goes public in what is expected to be the largest technology initial public offering this year.
  • Financial Times: Intel beat expectations and raised its full-year sales forecast on Tuesday as the market for computers, most of which rely on its chips, shows signs of recovery after years of being battered by the growth of smartphones and tablets.
  • Financial Times: Chinese smartphone maker Xiaomi has launched an aggressive push into India - placing renewed pressure on market leader Samsung and increasing competition in the country’s fast-growing mobile-device sector.
  • Financial Times: Carlos Slim’s efforts to establish himself in the European telecoms market have taken another step forward after the Mexican billionaire’s América Móvil secured a majority stake in Telekom Austria.
  • Financial Times: Royal Dutch Shell says it has discovered 100 million barrels of oil equivalent in the Norphlet, a formation in the Gulf of Mexico - its third big find in the area.
  • Financial Times: Ralph Whitworth, a leader among the activist investors who are shaking up US corporate governance, has stepped down as interim chairman of Hewlett-Packard and will take a leave of absence from his hedge fund, Relational Investors.
  • Financial Times: Google has struck a deal with Novartis to jointly develop “smart” contact lenses in the first alliance of its kind between big technology and pharmaceuticals groups.
  • Financial Times: Goldman Sachs’ commodities business, known for its muscular trading operation, is rapidly expanding in a plainer and less politically charged area even as listless markets and increased regulation force rivals to beat a retreat.
  • Financial Times: Drax Group has won an appeal against a decision to exclude it from receiving a £1.3 billion investment contract to fund the conversion of one of its coal-fired generating units to biomass.
  • Financial Times: Babak Parviz, the creator of Google’s Glass headset, is moving to Amazon as the industry’s leading companies battle to secure the bright minds who will help them discover the next breakthrough technology.
  • Financial Times: Space tourism and the continued rapid growth of Britain’s space industry will provide a £1 billion annual boost to the economy, the government has said.
  • Financial Times: Airbus has secured AirAsia X as the launch partner for its new long-range passenger jet, with Asia’s largest low-cost airline agreeing to buy 50 A330 Neo aircraft worth nearly $14 billion at list price.
  • Financial Times: The UK’s privacy watchdog has received a record number of complaints from people increasingly worried about how their personal data are being used.
  • Daily Mail: Sterling soared to a six-year high yesterday after an unexpectedly sharp rise in inflation bolstered the case for an early rise in interest rates.
  • Daily Mail: Watchdogs in Britain have been accused of failing to shine the spotlight on the emerging ‘dark pools’ trading scandal; giving evidence to the Treasury Select Committee, Bank of England officials including governor Mark Carney were admonished for lagging their counterparts in the US and Europe.
  • Daily Mail: Dairy Crest said it was on course to cut £20 million off costs this year as the supermarket price war takes a toll on the firm.
  • Daily Mail: Two thirds of financial advisers say they have seen an increase in demand for their services since pension and Isa changes were announced in the Budget, according to a survey by Skandia.
  • Daily Express: Costa Coffee and Premier Inn hotels owner Whitbread has hired former Boots chief executive Richard Baker as its new chairman.
  • Daily Express: Internet betting and digital entertainment group Bwin.Party said customers having a flutter on the World Cup had kept profits on track.
  • Daily Express: The takeover of Stansted has sent passenger numbers and profits taking off at Manchester Airports Group (MAG).
  • The Guardian: The credit checking company Experian was under fire on Tuesday for promoting its chief executive, Don Robert, to chairman in a move that contravenes City corporate governance codes.
  • The Guardian: Tesco is facing criticism from farmers for promoting New Zealand lamb at the height of the British season for the meat, despite its promises to back local producers.
  • The Independent: Lloyds looks set to be the next banking group to be hit with a heavy fine over alleged attempts by traders to manipulate Libor interest rates.
  • The Daily Telegraph: Google has hired former Ford chief Alan Mulally as it develops self-driving car; it is hoping its Android software will become the standard platform for everything from messaging to media in cars.
  • The Daily Telegraph: BMW has approved spending billions on Samsung SDI batteries as it looks to the future and increases production of electric vehicles.

Share tips, comment and bids

  • Financial Times: Cigarette maker Reynolds American is buying the rival Lorillard for $27.4 billion in a complex four-way deal that will reshape the $90 billion US tobacco market.
  • Daily Mail: Lambert & Butler owner Imperial Tobacco has agreed a £4.2 billion deal to buy five cigarette brands set to be cast off from the merger of two of America’s biggest tobacco firms.
  • Financial Times: Albemarle, the chemicals manufacturer known for its bromine-based products, is to buy lithium specialist Rockwood in a cash-and-shares deal that values Rockwood at about $6.2 billion.
  • Financial Times (Lex): Reynolds / Lorillard: smoke signals.
  • Financial Times (Lex): Goldman Sachs: trading places.
  • Financial Times (Lex): Software AG: hard times.
  • Financial Times (Lex): Mylan / Abbott: tight spin.
  • Financial Times (Lex): Aecom / URS: solid foundation.

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