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Wednesday Papers: Emerging market assets hit in sell-off

And Google, Facebook urge US to loosen gag on role in online spying.

 
Wednesday Papers: Emerging market assets hit in sell-off

Top stories

  • Financial Times: Emerging market currencies, stocks and bonds suffered a fierce sell-off on Tuesday on rising investor concerns over the prospect of the US Federal Reserve reining in its programme of bond-buying to drive down long-term interest rates.
  • Financial Times: Google and Facebook have asked the US government to ease a gag order that prohibits the internet companies from revealing the number of national security requests they receive for users’ data.
  • The Guardian: James Crosby, the former boss of HBOS who was slated by parliamentarians for a "colossal failure" of management at the helm of the bank, has been formally stripped of the knighthood he was awarded before the banking crisis.
  • Daily Mail: Barclays has confirmed it uses Deloitte to help process payment protection insurance complaints as the accountancy giant faces allegations it trained staff to stonewall customers and ignore fraud.
  • Financial Times: Jamie Dimon hit back against allegations that JP Morgan Chase executives misled investors over the bank’s “London whale” trading losses, pledging to fight “to the end” against any lawsuits filed in the affair.
  • Financial Times: Facebook faced a barrage of complaints from shareholders over the company’s depressed stock price at its first annual general meeting on Tuesday, prompting chief executive, Mark Zuckerberg, to express his own disappointment.
  • The Daily Telegraph: Mobile operator SoftBank has agreed with Sprint Nextel to raise its offer for the US wireless carrier to $21.6 billion from $20.1 billion, as it fights off a counter bid by Dish Network.
  • Daily Mail: An FBI investigation into a £3 billion alleged accounting fraud at Autonomy could last for two years, according to sources close to the case.
  • Financial Times: Investors are nursing losses of up to 9% on Apple’s record-breaking $17 billion bond offering, less than six weeks after the securities landed in their portfolios.
  • The Guardian: Investors have rejected a £3.4 million pay deal for the boss of Afren, an oil exploration company, in one of the largest shareholder revolts yet seen.
  • The Daily Telegraph: The board of Severn Trent is facing pressure from investors after a Borealis-led consortium abandoned a £5.3 billion bid approach following an alleged lack of communication between the two sides.
  • Financial Times: The private bank of Goldman Sachs has snapped up an unusually liquid set of assets as collateral for a loan to Andrew Cader, a former executive - almost 15,000 bottles of fine wine.
  • The Independent: The Aim-listed broker and fund manager Xcap Securities has been fined £121,000 by the Financial Conduct Authority for failing to keep its clients' and own money separate.

Business and economics

  • The Daily Telegraph: The Government has challenged new European Union powers to regulate financial markets as "unlawful" and an "institutional revolution" by the back door, during a legal challenge in Europe's Luxembourg court.
  • Financial Times: The US Treasury will have to pay a positive real interest rate on new 10-year borrowing for the first time in 18 months as investors get cold feet about a possible slowing of the Federal Reserve’s bond buying programme.
  • The Independent: Britain is experiencing the lowest productivity levels ever recorded in a recession - despite more people staying in work and enduring lower wages, a new study by the Institute of Fiscal Studies claims.
  • The Guardian: Britain's brief manufacturing revival came to a halt in April as output fell by 0.2%, the Office for National Statistics has said.
  • Financial Times: The African Development Bank announced plans on Tuesday to begin returning its headquarters and 1,500 employees from Tunisia to Ivory Coast, which it abandoned during its civil war.
  • The Daily Telegraph: China International Travel Service, China's biggest travel agency, has warned that Britain is losing business “every minute” because of its “complicated and expensive” visa system.
  • The Guardian: Lloyds Banking Group customers who had payment protection insurance claims rejected have been urged to resubmit them after an investigation found call centre staff were encouraged to delay and deny compensation requests in the hope they would be dropped.
  • The Daily Telegraph: Dwell, the upmarket furniture retailer, is close to collapsing into administration, putting 200 jobs at risk.
  • Daily Mail: Sir Roger Carr is expected to be confirmed as the chairman of BAE Systems as early as Wednesday.
  • Financial Times: BG Group closed up 0.3% to £11.73 on Tuesday, making itself one of the few outperformers in a falling London market, as concerns eased about an earnings shortfall from its Egyptian business.
  • The Independent: The construction group Galliford Try has grabbed a place on a £2.5 billion flood defence contract of the Environment Agency that has suffered from flaws similar to the West Coast rail fiasco.
  • The Guardian: The number of commercial aircraft in the world will double in the next two decades, with the Asia-Pacific region becoming the focal point of global aviation, according to Boeing.
  • Financial Times: Nokia will finally stop shipments of its once-mighty Symbian smartphones this summer and throw its future wholly behind Microsoft’s Windows platform.
  • Financial Times: While much of Italian business splutters, Ferrari is adding 250 jobs and handing out bonuses of at least €8,500 to its workers this year.
  • Financial Times: The revenue of IG Group, the UK’s biggest spread betting operator, increased by 8% year on year to £104.3 million in the three months ending May 31, the company said in a trading update on Tuesday.
  • The Daily Telegraph: Luxury fashion house Prada posted a 13.5% rise in its first-quarter profits.
  • Financial Times: One of Russia’s biggest online fashion retailers Lamoda has raised $130 million from a group led by oligarch Len Blavatnik, allowing it to expand more rapidly across the country and build up its next-day delivery service.
  • The Daily Telegraph: Almost half of the trainees recruited by BAE Systems this year will join the defence giant's burgeoning cyber and security business as companies look to protect themselves against increasing cyber threats.
  • The Independent: Land Securities, the property giant which is redeveloping London's Victoria, has parted company with its auditor, PricewaterhouseCoopers, for the first time since the group was formed 69 years ago.
  • Financial Times: Oxford Instruments has warned of a slow start to its new financial year, as a tightening of US health budgets threatens to limit demand for nanotechnology equipment that allows scientists to study and build structures at a molecular scale.
  • Financial Times: Credit unions in the UK will be able to charge higher interest rates to borrowers from April 2014, as the government seeks to help the sector fill a gap left by mainstream lenders.

Share tips, comment and bids

  • Financial Times: The spate of expensive acquisitions of young consumer internet companies with little or no revenue was extended on Tuesday as Google agreed to pay $1 billion for Waze, a fast-growing traffic and mapping app for smartphones.
  • Financial Times: Royalty Pharma has accused Dublin-based Elan of misleading shareholders over voting procedures pivotal to its $6.7 billion hostile bid for the Irish company, ahead of a deadline on Wednesday to approve a series of alternative transactions by Elan.
  • The Independent: Keller Group, the ground engineer that laid the foundations for the London Olympic stadium, plans to buy Canada's North American Piling in a deal worth up to £202.5 million.
  • The Daily Telegraph: The proposed £1.8 billion merger between two of Britain's biggest soft drink makers, Britvic and AG Barr, is on the rocks despite the Competition Commission provisionally clearing the tie-up.
  • The Guardian (Comment): David Cameron must deliver a concrete plan of action at the G8 summit. It's a crucial test of his leadership.
  • The Guardian (Comment): The US Congress wants to deny two million people food stamps, while hardly denting large agribusinesses.
  • The Daily Telegraph (Comment): An Englishman’s home is his castle, but only if he can still afford one.
  • The Daily Telegraph (Comment): Never let your briefing document flutter in the breeze anywhere near the paparazzi of Downing Street. It's amazing how many still do it.
  • Daily Mail (Comment – Alex Brummer): It is widely expected that Sir Roger Carr will be named as chairman of BAE Systems. In his role at BAE, Carr must learn to be a defender of British interests rather than a seller.
  • Financial Times (Lex): SoftBank: The Japanese company will pay $1.5 billion more and Sprint shareholders will get $4.5 billion. The loser in that calculation is Sprint’s much-needed capex funds.
  • Financial Times (Lex): Microsoft: Whether Xbox has been a mistake remains a complicated question. Little wonder the technology company is keen to position it as a multimedia device.
  • Financial Times (Lex): Severn Trent: LongRiver’s mistake may have been its failure to put a premium on a unique aspect of its proposed deal. Despite this, a deal may still make sense
  • Financial Times (Lex): Rémy Cointreau: The French spirits group has dined out on its exposure to China’s cognac drinkers for years. But growth in the country is looking less assured.

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Watchdog warns investors over corporate bonds

by Gavin Lumsden on Jul 25, 2014 at 15:18

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