WHAT THE OTHER PAPERS SAY THIS MORNING
FINANCIAL TIMES
BOLTON’S CHINA FUND SUFFERS
Anthony Bolton, the feted fund manager at Fidelity International, has suffered a stumble with the poor performance of his new flagship China fund this year. Mr Bolton’s China Special Situations fund raised £460m ($743m) when it launched with much fanfare on the London Stock Exchange last April. But in the year to date, shares in the fund have dropped 20 per cent, a much sharper fall than the broader Shanghai and Hong Kong markets. Over the same time, the net asset value of the fund dropped 14.4 per cent.
BIGGEST BANKS FACE NEW CAPITAL CLAMPDOWN
Global regulators are poised to set a new tiered regime of additional capital requirements for about 30 of the world’s biggest banks, in the latest effort to ensure the next financial crisis can be contained. The regulators plan to place each institution into a “bucket” carrying a particular surcharge based on bank size, global reach, structural complexity and whether other banks could absorb its business. Banks could move between categories as their size, structure and risk appetite change.
OCH-ZIFF BUYS $12BN OF OPTIONS ON US EQUITIES
Och-Ziff, the world’s fifth-largest hedge fund, took out more than $12bn of options on US equities in the first quarter in an apparent bet to profit from a rise in market volatility, according to regulatory filings. The move comes as many of the world’s most sophisticated money managers look to dial down risk as expectations for a market correction – or a period of turbulence over the summer – take hold. Large hedge funds were hit by rocky markets in May and the beginning of June and some have begun to scale back their bullish positions.
THE TIMES
NYSE EURONEXT STRENGTHENS BOND WITH LCH.CLEARNET
NYSE Euronext has extended its contract for clearing services with LCH.Clearnet ahead of a possible takeover of the Anglo-French business. NYSE Euronext said last night it had pushed back to 2013 the date at which it would stop using LCH to clear its European equities and derivatives trades, a year later than it had previously planned to terminate its contract.
VON ESSEN BOSSES RESTRICTED ACCESS TO ACCOUNTS
Ernst & Young still doesn’t know how much is owed: Senior management of von Essen Hotels obstructed attempts by Ernst & Young to carry out an independent business review for its banks after the company first breached its covenants in January, according to a report to creditors.
The Daily Telegraph
AMERICANS RETURN TO PESSIMISM ABOUT US ECONOMY
A poll for The Wall Street Journal/NBC found that 30pc of Americans questioned expect the economy to deteriorate over the next year, with 29 per cent predicting an improvement. Although it’s a small difference, economists say it reflects the cumulative effect of high gasoline prices, a still depressed housing market and the uneven recovery in the jobs market.
GOVERNMENT ADMITS IT ONLY HAS HALF THE MONEY FOR SUPERFAST BROADBAND
Jeremy Hunt, the Culture Secretary, has revealed for the first time that the government has only set aside half the money needed to roll out super-fast broadband in rural communities. In a letter to MPs yesterday he admitted that another £530m needs to be provided.
THE WALL STREET JOURNAL
BOEING SEES RISING AIRCRAFT DEMAND
Boeing Co. said yesterday it is raising its forecast for the global commercial-aircraft market over the next 20 years by eight per cent, and now expects demand for 33,500 aircraft worth a total of $4 trillion. Boeing’s previous long-term market forecast a year ago was for 30,900 new commercial aircraft worth $3.6 trillion.
FORD RAMPS ASIAN CAR PLANS
Ford Motor Co. believes it can earn a “competitive return” in China and India even as it rolls out a string of new cars in those markets that will sell for much lower prices than the vehicles it sells in North America and Europe. Over the next four years, Ford plans to expand to 15 from five the number of vehicles it sells in China. Some of the new cars will sell for less than $14,500.