What the other papers say this morning - 01 July 2014

FINANCIAL TIMES

EU slams US over Microsoft privacy
A US attempt to force Microsoft to hand over emails held on servers in Ireland has drawn a strong rebuke from Brussels in one of the first tests of cross-border privacy raised by cloud computing. The US demand could contravene international law and should have been handled through the official channels normally used for law enforcement between different regions, according to Viviane Reding, vice-president of the European Commission.

Fidelity doubles Quindell stake
Fidelity, one of the world’s largest asset managers, has doubled its stake in Quindell, in a vote of confidence for the embattled claims management company. The move comes as investors and short sellers debate whether Quindell represents a revolutionary new model for the insurance industry, or an overhyped start-up that exposes the risks of London’s junior stock market.

Citic may give up US bank branches
Citic Group, the large Chinese investment conglomerate, is considering giving up its bank branches in the US at the same time as it undergoes a massive restructuring, according to several of its senior executives. It is among a group of Chinese entities, along with China Investment Corp, that US regulators consider bank holding companies.

THE TIMES

Coulson faces retrial on Palace phones
Andy Coulson was among a string of executives who “condoned and encouraged” phone hacking at the News of the World where it became an “approved corporate practice”, the Old Bailey heard. Two ex-colleagues placed Coulson, the PM’s former director of communications, at the forefront of the conspiracy as he learnt he would be retried over corruption allegations.

Poundworld to add 150 new stores
The family owners of Poundworld have secured £26 million from Santander to open up to 150 new stores, particularly in the south of England.

The Daily Telegraph

GM is to recall more than 8m cars
General Motors is to recall more than 8m cars whose production date back as far as 1997 as the scandal over faulty ignition switches intensifies. The latest recall – which applies to cars in the US, Canada and Mexico – means the manufacturer has now called back almost 30m cars this year.

Goldman hikes UK growth forecast
Goldman Sachs has issued a bullish upgrade to its UK economic forecast in a vote of confidence for George Osborne’s recovery. Analysts now predict that GDP will grow by 3.4 per cent this year, compared to a previous forecast of 3 per cent.

THE WALL STREET JOURNAL

Spain’s Caixabank names new CEO
Caixabank said yesterday that its current chief financial officer will become the lender’s chief executive. Gonzalo Gortazar will become the CEO, replacing Juan Maria Nin. The bank said in the statement that the move was reached “by mutual agreement” and approved by the board.

Carrefour buys Italian Billa outlets
German retailer Rewe Group reached an agreement with France’s Carrefour to sell 53 of its Billa outlets in Italy, as it is withdrawing from the Italian full-range retail market. Rewe is in talks to sell its remaining 83 outlets to other buyers.