What the other papers say this morning – 07 March 2014
FINANCIAL TIMES
Osborne faces £20bn black hole
George Osborne faces a black hole of more than £20bn in the public finances, according to official government economic models. The news suggests that Britain might have to endure an extra year of austerity before the books are balanced. The models by the Office for Budget Responsibility, which the Financial Times has replicated, indicate that the government should no longer rely on an economic recovery to eliminate part of the budget deficit.
Car-makers ponder robot-car liability
Who is to blame if your self-driving car crashes? The automotive industry is trying to answer this somewhat futuristic question, according to the chief executive of parts supplier Continental. Autonomous vehicles are one of the car industry’s most competitive areas of innovation, with some estimates suggesting that the potential to cut road deaths and injuries could be worth more than $5 trillion in benefits.
Deutsche compliance head departs
Deutsche Bank’s global head of compliance is departing to join a law firm, a move that comes at a time when the German lender is facing a host of regulatory and legal issues. Andrew Procter, global head of compliance as well as government and regulatory affairs, will return to legal practice in June as partner at Herbert Smith Freehills.
THE TIMES
Docklands print site redevelopment
Richard Desmond has appointed the property group owned by the Livingstone brothers to redevelop a 15-acre site in London’s Docklands. Northern & Shell, the parent company of Mr Desmond’s newspapers, wants London & Regional to secure planning consent to develop the Westferry Printers site, according to Estates Gazette.
Cinven to sell Spire Healthcare
Britain’s second-largest chain of private hospitals has been put up for sale by Cinven with a price tag of £1.5bn after the business escaped serious sanctions in a recent Competition Commission investigation.
The Daily Telegraph
Two traders suspended in FX scandal
The scandal surrounding alleged foreign exchange manipulation intensified after two dealers were suspended as part of an probe into the market. Robert de Groot, global head of spot trading at BNP Paribas, and Joe Landes, Bank of America Merrill Lynch’s head of spot trading for Europe, Middle East and Africa, have been put on leave, according to reports. The banks declined to comment. The developments come after the Bank of England said it had suspended a member of staff over breaches of its “internal control processes.” Bank of England minutes released this week showed de Groot attended meetings held between Bank staff and leading FX dealers between 2005 and 2013.
THE WALL STREET JOURNAL
Companies rush to list shares
In the first two months of this year, 42 companies went public in the US, raising $8.3bn and tying 2007 for the busiest start to a year for initial public offerings since 2000, when there were 77 in the period, according to Dealogic.
Cerberus to buy Safeway for $9bn
Cerberus Capital Management agreed to buy Safeway for more than $9bn, the private-equity firm’s latest acquisition of a big US grocery chain. The deal brings together Cerberus’ Albertsons chain – the fifth-largest US grocery store by market share – with Safeway, the second largest.