WHAT THE OTHER PAPERS SAY THIS MORNING
FINANCIAL TIMES
BRITISH LAND TO BUY RESIDENTIAL COMPLEX IN THE CITY
British Land is in advanced talks to buy a City of London residential complex, in its first acquisition under a strategy to focus on the booming market for prime homes in the capital. The UK’s second-largest property company has agreed to buy Wardrobe Court being sold by the Warnford Group, a privately owned property company.
TREASURY UNVEILS AVOIDANCE REFORMS
A new approach to tackling avoidance by multinationals was unveiled by the Treasury on Thursday, in a root-and-branch reform of 30-year-old legislation that it said was designed to “reverse the recent trend of businesses leaving the UK amid concerns over tax competiveness”. The consultation on the changes to the “controlled foreign companies” regime sets out a more business-friendly approach to the taxation of profits diverted to low-tax jurisdictions.
DEALMAKING SLIDES 17.5 PER CENT ON OUTLOOK CONCERNS
Dealmaking slumped in the past three months as companies took fright from renewed concerns about the future of the eurozone and the outlook for the global economy.
Global merger and acquisition volumes fell 17.5 per cent in the second quarter compared with the first three months of 2011, according to data from Mergermarket.
CHINA CURBS RASH OF HIGH-YIELD BANK PRODUCTS
The China Banking Regulatory Commission has moved to rein in an explosion of short-term high-yielding financial products that regulators see as a potentially dangerous side-effect of a lending spree by banks since the global financial crisis.
THE TIMES
GLENCORE’S BANKS CUT FORECASTS FIVE WEEKS AFTER ITS LISTING
Glencore’s banks have wiped hundreds of millions of dollars from their profit forecasts for the commodities trader, only weeks after helping it to raise $10bn in London’s largest-ever flotation. Bank of America Merrill Lynch cut its pre-tax profit estimate by 12.6 per cent for this year. Credit Suisse reduced its 2012 forecast by one per cent, while Liberum Capital cut this year’s target by 18.2 per cent.
HUHNE FACES PARTY FURY OVER CALL FOR MORE NUCLEAR POWER
Britain will face soaring energy bills unless it emulates France and drives up its use of nuclear power, the Energy Secretary said yesterday. Chris Huhne is likely to face accusations of hypocrisy after applauding Britain’s European neighbour for keeping down energy prices.
The Daily Telegraph
ITV LEAPS ON TALK OF INTEREST FROM PRIVATE EQUITY
Investors switched on to ITV in their droves as they pinned their hopes on private equity making a tilt at the broadcaster of Downton Abbey and The X Factor. Talk that a firm such as Permira or KKR could snap up the broadcaster – with a price tag around 110p per share being mentioned – sent ITV shooting up 4.45 to 71.95p.
HARRODS STOPS TAKING CHEQUES
Harrods, the London department store, will stop accepting cheques at the end of this week, becoming the last major retailer in Britain to do so. Its decision coincides with the ending of the cheque guarantee card, which is being scrapped from Friday, July 1, after more than 40 years in existence. Campaigners say the end of the card, is the final nail in the coffin for cheques.
THE WALL STREET JOURNAL
SAAB SECURES NEW FUNDS
Saab Automobile owner Swedish Automobile said yesterday it secured a €25m bridge loan from hedge fund Gemini Investment Fund that will allow it to restart production soon. With the convertible bridge loan, the sale of real estate and an order for cars from an unnamed Chinese buyer, Saab Automobile this week has secured €66m in funding.
GE EXTENDS SPONSORSHIP OF OLYMPIC GAMES
General Electric said yesterday it extended its sponsorship of the Olympic Games until 2020, touting potential gains for its industrial units in the wake of severing media ties with the Olympics following the sale of its NBC Universal unit. Chief executive Jeffrey Immelt unveiled the pact in Moscow, with GE’s new deal covering four more Olympics.