WHAT THE OTHER PAPERS SAY THIS MORNING
FINANCIAL TIMES
fears over china’s bad loans
China’s banks are facing serious default risks on more than one-fifth of the Rmb7,700bn ($1,135bn) they have lent to local governments across the country, according to senior Chinese officials. In a preliminary self-assessment carried out at the request of the country’s regulator, China’s commercial banks have identified about Rmb1,550bn in questionable loans to local governments.
banks optimistic imf loan will reboot ukraine
Only a couple of weeks after Ukraine cancelled a $2bn Eurobond issue, bankers who saw it as a missed and attractive opportunity are now hoping the former Soviet republic will return to capital markets following this week’s expected approval of a $14.9bn standby loan from the International Monetary Fund.
FORD UNVEILS ECO-EXPLORER
The Ford Explorer, once the embodiment of American baby-boomers’ love affair with big cars, reappeared in a more environmentally friendly form designed to keep pace with shifting consumer tastes. Ford promises that the 2011 Explorer’s standard V6 engine will offer 20 per cent better fuel economy than the current 2010 model. The version fitted with Ford’s new four-cylinder EcoBoost engine, which delivers as much power as a V6, will have fuel consumption comparable to Toyota’s Camry.
PUBLISHER JOINS PROTEST AT AMAZON E-DEAL
HarperCollins UK yesterday joined Random House in protesting against an exclusive deal between Andrew Wylie, the controversial literary agent, an Amazon.com to sell electronic versions of classic books. Random House last week severed ties with Mr Wylie.
THE TIMES
PENSION PAYOUTS THREATENED IF EXECUTIVES QUIT OVER TAX
Many thousands of employees face lower pension payouts if high-ranking executives carry out threats to quit corporate schemes to avoid a punitive new tax measure to take effect in April, The Times has learnt.
It is feared large numbers of senior executives will choose to leave pension schemes to avoid the new levy.
AUDIT OFFICE DEMANDS REVIEW OF FUTURE PFI PROJECTS
The National Audit Office has called for a project-by-project review of future Private Finance Initiative contracts amid concerns about a rise in bank lending rates. An NAO report said that higher rates charged by private sector lenders meant that the PFI was less likely to represent value for money in future. Credit crunch deals locked in an extra £1bn of costs.
The Daily Telegraph
BUSINESS TURNS TO BANK OF ENGLAND FOR FUNDING
he Bank of England purchased more corporate bonds in May and June under its quantitative easing programme to push cash into the economy as companies struggled with the sovereign debt crisis. Bank holdings of corporate debt rose from £1.36bn to £1.6bn in the three months to June, its quarterly Asset Purchase Facility report showed.
ID FRAUD UP 22PC DUE TO RECESSION
The number of victims of ID fraud has risen in the first six months of this year compared to the same period in 2009. The number of instances has also risen significantly, up 14pc from January to June compared with the previous year according to Cifas, the UK’s fraud prevention service. The report also warned of a strong likelihood of incidents continuing to rise.
WALL STREET JOURNAL
CRISIS-ERA MUNI FUNDS HAUNT WALL STREET BROKERAGES
Two years after the credit-market meltdown hit a once-booming sector of the municipal-bond market, Wall Street brokerage firms are being ordered to pay millions to investors who lost big on what some thought were low-risk investments. This month, an investor arbitration panel awarded a California family $2.1m, the full amount of its losses on a $3m investment in a fund sponsored by First Republic Securities, formerly owned by Merrill Lynch.
CITI DISCLOSES SECURITY FLAW IN ITS IPHONE APP
Citigroup told its US mobile banking customers they should upgrade to a new application designed for Apple’s iPhone after the bank’s original version was found to have a security flaw.