Value of M&A hits $1.7 trillion
Deal frenzy, animal spirits, merger mania – call it what you like, it is back. The value of global mergers and acquisitions hit $1.75tn in the first six months of the year, a 75 per cent rise on the same period last year and the highest since 2007. The increase highlights a shift in thinking in the US, Europe and Asia. Risk aversion and organic expansion, embraced after the financial crisis, are being pushed aside as the belief returns that growth can be more easily bought than built.
Labour to pledge corporate tax rise
Labour will confirm today that it will raise corporation tax if elected next year and is considering a tax break to equalise the treatment of debt and equity finance for companies. Ed Balls, shadow chancellor, will say that he is “examining the case” for an “allowance for corporate equity” as part of reforms to encourage more long-term attitudes in business.
Facebook hit by testing backlash
Facebook has angered users after it emerged that a psychology experiment was conducted on hundreds of thousands of the social network’s members without their awareness or consent.
A week-long study of more than 689,000 Facebook users in 2012 found that those who were exposed to fewer positive stories when they visited the site were more likely to write negative posts, and vice versa.
FCA says handling a qualified success
The head of the Financial Conduct Authority Martin Wheatley has defended the regulator against allegations that it mishandled its approach to bringing high street banks to task over the mis-selling of complex financial products to thousands of small businesses. He described the FCA’s response as a “qualified success”.
Grand plan to join up tax systems
Income tax and national insurance will be merged under plans being lined up as a key element of the next Conservative manifesto.
The Daily Telegraph
Private equity IPOs highest ever level
Private-equity-backed flotations have risen to their highest level of all time as buyout groups rush to take advantage of London’s revived equity market. Private-equity groups across Europe have launched 31 flotations, worth €33.4bn (£26.7bn), in the first half of this year, says the Centre for Management Buyout Research.
RBS to launch tooling fund for cars
The Royal Bank of Scotland is to launch a £25m “tooling” fund to help engineering companies manufacture components to supply Britain’s car makers and support one of the strongest parts of the UK economy.
THE WALL STREET JOURNAL
Sex video sheds light in Glaxo case
A surreptitious sex video of a Glaxo China executive led the company to hire a husband-wife investigative team who subsequently were arrested on charges they violated Chinese citizens’ privacy.
China to set up clearing banks
China’s central bank said it plans to designate a clearing bank for its currency in Paris and Luxembourg, as the two financial centres battle with London to become the leading European offshore yuan-trading city. The People’s Bank of China announced the moves yesterday.