GREENSPAN WARNS OVER WEAKER DOLLAR
The US is pursuing a policy of weakening its currency which is driving up exchange rates in the rest of the world, according to Alan Greenspan, the former chairman of the Federal Reserve. Writing in today’s Financial Times ahead of the G20 meeting in Seoul, Greenspan argues that with China also holding down the renminbi, the upward pressure on currencies elsewhere risks a return to widespread trade protectionism.
WALL STREET TO SIDESTEP VOLCKER RULE
Wall Street groups will continue to invest billions of dollars in property and companies in spite of new rules aimed at curbing the bets banks make with their capital, executives say. US financial groups such as Goldman Sachs, JPMorgan Chase and Morgan Stanley intend to take advantage of a little-discussed aspect of the Volcker rule to continue making direct investments.
FIRST EASTERN FUND TARGETS UK
First Eastern Investment Group, a Hong Kong-based private equity firm, has launched a $500m fund to invest in small and medium sized enterprises in the uK and help them break into the Chinese market. The fund was launched yesterday in Beijing during Prime Minister David Cameron’s official visit.
BA SUFFERS SETBACK IN CABIN CREW CLASH
British Airways’ attempt to reach a settlement in its acrimonious dispute with cabin crew has hit another stumbling block after two branches of the trade union involved said they would not recommend the airline’s latest offer to members. BA and the Unite union last month reached a tentative agreement.
MACY’S SINGS PRAISES OF MADONNA
A clothing line for teenagers launched in August by Madonna and her 13-year-old daughter Lourdes is helping to breathe new life into Macy’s. The Material Girl line, which recalls Madonna’s leather-and-lace days of the 1980s, represents the American department store’s attempt to compete with outlets such as H&M.
BAE HAS SIGHTS ON CYBER WARFARE AS MERGERS ARE RULED OUT
BAE Systems is to look for acquisitions in high-growth areas such as cyber warfare, but mega-mergers will be off the agenda as defence cuts loom. Ian King, chief executive of Europe’s largest defence company, said that the Pentagon had made clear it did not want more consolidation between the world’s largest defence contractors because it would reduce competition.
The Daily Telegraph
PRIVATE DETECTIVES CHASE HP BOSS
The new chief executive of Hewlett-Packard is being hunted by private detectives, it has been claimed. Investigators are said to have been hired by software group Oracle to find Leo Apotheker, who took charge at Hewlett-Packard this month. Oracle is attempting to serve Mr Apotheker with a subpoena to testify in a court case, in which it is fighting SAP, a rival company that Apotheker formerly led.
ANGLIAN'S JONSON COX IS NEW UK COAL CHAIRMAN
UK Coal, Britain’s largest coal miner, has appointed Jonson Cox, the former head of Anglian Water, as its new executive chairman. The company announced in July that David Jones and Jon Lloyd will step down as chairman and chief executive, ahead of the company being split into its coal assets and property operations.
THE WALL STREET JOURNAL
EU MINISTERS, PARLIAMENT TO NEGOTIATE BUDGET INCREASE
European budget ministers will meet representatives from the European Parliament in Brussels on Thursday to try and reach an agreement on next year’s EU budget. The council, which comprises budget ministers from the bloc’s 27 member states, wants the budget to increase by no more than 2.91 per cent from this year’s level of €122.9bn, while Parliament wants a 6.2 per cent rise.
SWITZERLAND TIGHTENS BANK CAPITAL RULES
The Swiss government is asking banks to set aside more capital as a cushion against losses on their trading books, a move that will affect UBS AG and Credit Suisse more than smaller institutions. The tighter rules, which come into force on 1 January, stem from the Basel III rules.