MERKEL WARNS ON PROTECTIONISM
The greatest danger facing the global economy is a return to trade protectionism, Angela Merkel, German chancellor, has warned ahead of this week’s meeting of global leaders in Seoul. In an interview with the FT Merkel suggested that China must be persuaded with “facts and benchmarks” to set a “fair exchange rate” for the renminbi, rather than be attacked for its currency policy.
JAPAN’S SKYMARK TO BUY A380 JETS
Airbus’s battle to break into Japan gained a big lift on Monday when Skymark, a budget airline based in Haneda, said it planned to buy four of the European manufacturer’s A380 superjumbos, with an option for two more. The order, worth about $2bn at list prices, is the biggest long-haul passenger aircraft deal Airbus has made in years in Japan, where its US rival Boeing has long had a stranglehold on the marke
GREEKS RELIEVED AS THREAT?OF?SNAP POLL FADES
Greece’s business community expressed relief after George Papandreou, the prime minister, withdrew his threat to call a snap election in spite of falling support for his socialist party in local elections. Mr Papandreou instead interpreted Sunday’s poll results as a vote of confidence in his harsh austerity policies.
INVESTORS SEEK TRANSPARENCY IN HEDGE FUNDS
Transparency is the leading concern investors share about the publicity-shy $1,800bn global hedge fund industry, followed by fees and managers’ pay, a report shows. Just half of the investors polled thought pay structures in hedge funds were aligned with the best interests of the fund, compared with 94 per cent of managers, the survey shows.
BANKERS WARN CLAMPDOWN THREATENS CITY EXODUS
The clampdown on bonuses and tougher regulation in Western nations could trigger a shift in investment banking activity away from the City of London and towards Asia, the chairman of Royal Bank of Scotland has warned. Speaking during a trip with George Osborne to Beijing, Sir Philip Hampton said that a number of factors were likely to propel wholesale banking business east.
DE LA RUE PREPARES TO CUT STAFF AS CUSTOMERS STAY AWAY
De La Rue is set to cut dozens of jobs as it is forced to pulp tonnes of high-quality paper for which it cannot find a buyer. The troubled banknote publisher has not received a single order for almost two months after it called in the Serious Fraud Office and accused managers of falsifying tests.
The Daily Telegraph
IMMIGRATION CAP HURTS GROWING COMPANIES
Fast-growing small businesses remain handicapped by the temporary cap on hiring migrants from non-EU companies despite a series of changes to the scheme. The Government has responded to business criticism of the cap last week by confirming that “intra-company transfers” within international companies would not count.
GUNMEN ATTACK AFREN OIL RIG OFF NIGERIA
Gunmen have attacked an oil-rig off the coast of Nigeria belonging to Afren, the London-listed oil exploration company. Five crew members were kidnapped and a further two injured in the incident Afren’s shares fell amid concerns the attack, would shatter an amnesty brokered last year by the country’s president.
THE WALL STREET JOURNAL
HONDA LOOKS TO GRASS TO RESOLVE ITS POWER NEEDS
Honda Motor Co. believes a fast-growing African grass may be the solution for fueling an as-yet-unbuilt power station at its car factory near Swindon. The plan to use miscanthus, a low-maintenance grass which is already burned alongside coal in some UK power stations, is driven by environmental concerns as well as uncertainty over UK power supplies.
EU TO FINE AIRLINES FOR CARGO CARTEL
The European Commission is likely to fine more than 10 airlines on Tuesday, over an alleged global cartel in air-freight transport that has dragged on for years. The commission could fine the airlines hundreds of millions of euros for colluding in setting surcharges, mainly a fuel surcharge, for their cargo operations