CHINA EXPORT SURGE STIRS US ANGER
A surge in Chinese exports and rising anger in the US Congress will put renewed pressure on China to allow its currency to rise against the US dollar. Chinese trade figures showed exports leaping by 48.5 per cent in May over the year before, way ahead of analysts’ forecasts. Data released in the US showed America’s trade deficit widening slightly in April, with some economists arguing that the improvement in net trade and its contribution to US growth appeared to have stalled.
CARLSBERG TAKES CONTROL AT CHONGQING BREWERY
Carlsberg will look for more acquisitions in Asia after agreeing to pay $379m to become the leading shareholder in a top Chinese brewer, according to Jorn Jensen, the Danish group’s chief financial officer. The deal to increase Carlsberg’s stake in Shanghai-listed Chongqing Brewery from 17.5 per cent to 29.7 per cent was part of a broader expansion strategy in the region, Mr Jensen said.
GOLD SHARE CLASSES BOOST RETURNS FOR PAULSON
Gold-denominated investments in Paulson & Co, the $34bn hedge fund manager run by John Paulson, have more than doubled underlying returns in the group’s funds for clients. More than a third of Paulson’s total assets under management, including all of Paulson’s personal investments, are denominated in gold share classes, according to people familiar with the funds – a sign of concern about the risks of inflation.
UNDER-FIRE PRUDENTIAL CHIEF IS FROZEN OUT OF CRUCIAL TALKS
The Prudential’s leading institutional shareholders have frozen the chief executive out of crunch talks to debate his own future. It emerged last night that despite being in London, Tidjane Thiam has held no formal talks with shareholders this week about the future management of the UK’s biggest insurer. Instead, shareholders have specifically called for meetings with the chairman Harvey McGrath and James Ross, the senior independent director.
OWNERS PREPARE TO ATTRACT BUYER FOR RESILIENT PEACOCKS
The owners of Peacocks have begun a strategic review of the discount fashion chain that could result in its sale, the chief executive said yesterday morning.
The Daily Telegraph
AUSTRALIAN MINING TAX MAY BE CHANGED
Mining shares jumped yesterday on hopes that Kevin Rudd, Australia’s prime minister, was about to announce changes to his proposed mining tax. The measures, announced in May, have hit valuations across the sector hard. Australia’s Herald Sun newspaper reported that Mr Rudd will reveal in the next few days “major changes” to the 40pc mining super tax.
CHINA EXPANDS INFLUENCE IN CENTRAL ASIA
Chinese President Hu Jintao is today expected to sign a deal to double the capacity of China’s oil pipeline from Kazakhstan, ending a week-long tour of Central Asia that has further cemented Beijing’s grip over the region’s energy resources.
WALL STREET JOURNAL
EU CLOSE TO US DATA DEAL
The European Union said yesterday it is close to a five-year accord with Washington on financial-data sharing in antiterrorist investigations, stressing the deal will satisfy privacy concerns that led the European Parliament to void a previous draft. EU Interior Affairs Commissioner Cecilia Malmstrom said the new agreement contained far better privacy safeguards.
TELECOM ITALIA GOES SOLO
Telecom Italia SpA, Italy’s largest telecommunications operator, yesterday dismissed calls for joining a rival broadband project, telling regulators that it will push ahead with its own plans to offer ultra-fast broadband services to 50 per cent of the Italian population by 2018. Telecom Italia pledged to reach half of the Italian population with high-speed services.