Knights less likely to cut jobs
A group of European academics have concluded that company bosses are less likely to cut jobs to boost profits if they are in line for an honour, for fear of drawing the ire of politicians and the public. The study looked at companies in New Zealand, which abolished knighthoods and damehoods in 2000 before reinstating them in 2009, and found that when chief executives knew there was no chance of receiving an honour they cut costs to improve their bottom lines. When the prospect of a receiving a gong was reintroduced, these groups became less profitable , suggesting that these government awards encouraged them to act against the interests of shareholders
France to freeze welfare payments
France’s government is to freeze welfare payments temporarily and sustain a freeze in civil servants’ pay as part of its commitment to cut spending by €50bn (£29.77bn) in three years. Spelling out the details, new Prime Minister Manuel Valls said: “I owe the French people the truth. We cannot live beyond our means.”
Kazakh banker to lose UK asylum
The UK has decided to revoke the asylum status it granted in 2011 to Mukhtar Ablyazov, a former banker accused of fraud and one of Kazakh president Nursultan Nazarbayev’s main political opponents. Ablyazov, former chairman and main shareholder of Kazakhstan’s BTA Bank, was informed in January of the UK Home Office’s intention to cancel his refugee status.
Flight prices to soar without runway
The average cost of a return flight could rise by as much as £320 by 2030 if a third runway is not built at Heathrow airport. An independent report by Frontier Economics, commissioned by Heathrow, claims passengers are already paying £95 per return fare more than they would be if there was more capacity.
Firms with the biggest cash piles
Firms making up the FTSE 100 (excluding banks) are sitting on a cash pile worth £177bn, according to Banc de Binary, and that could be good news for investors. Several, including Next, Foxtons and Taylor Wimpey are planning to pay special dividends shareholders in the next few months.
The Daily Telegraph
Pensioners to get death estimates
Pensioners will be given estimates of how long they have left to live to help them manage their savings, a minister has disclosed. Steve Webb said the Government wants to provide pensioners with a rough life expectancy guide at retirement to allow them to make better financial decisions.
Small firms stressed despite growth
While a slew of recent data indicates that the UK economy is in recovery, it has arrived too late for many small firms, new research by insolvency practicitioner Begbies Traynor has found. The company revealed a 22 per cent rise in the number of companies in “significant” financial distress in the first three months of this year.
THE WALL STREET JOURNAL
Discovery out of Channel 5 race
US cable network Discovery Communications is no longer in the running to acquire Channel 5, according to a person familiar with the matter, as the auction of the over-the-air broadcaster moves to a final round.
Brazil sends in troops as police strike
Brazil's government ordered 2,500 army troops to one of the host cities for the coming World Cup to provide law and order after a police strike led to civil unrest. Yesterday, troops entered Salvador in north eastern Brazil, the state where police began striking on Tuesday night after shops and supermarkets were ransacked overnight, according to local reports.