Banks bow to EU bonus limit
Bankers’ bonuses across the European Union are set to be limited by law, with many bank lobbyists admitting in private that they have lost the fight against a European Parliament initiative to limit the size of bonuses relative to salary. Some banks still hope to increase the proposed ratio from 1:1 to 2:1 or beyond, while others are trying to limit the restriction to upfront cash bonuses, excluding deferred payouts. But many bankers now accept the principle of a ratio as inevitable.
Companies vent at Olympic gag
Ministers are under growing pressure from companies, frustrated that they are unable to “shout” about their involvement in creating this summer’s Olympics. They want the government to relax strict rules drawn up by the International Olympic Committee to protect the official sponsors.
France seeks stability package
France is pressing the EU to adopt a financial stability package to stem the eurozone crisis, believing negative market reaction to the €100bn bailout of Spain’s banks shows the need for more comprehensive action.
Sub-sea cable business to float
The Indian telecoms group controlled by Anil Ambani is set to spin off its subsea cable business in a deal that could fetch as much as $1bn. Reliance Comms said yesterday it had been granted approval to pursue an IPO for the business on the Singapore stock exchange.
Drugs deal for London company
Proximagen, a biotechnology business agreed yesterday to a buyout by Upsher-Smith Laboratories, a specialist in neurological medicines, for up to £357m.
The Daily Telegraph
Germany signals shift on Europe redemption fund
The German government has begun opening the door to shared debts for the first time in a profound change of policy, agreeing to explore proposals for a €2.3 trillion stabilisation fund in order to stop the eurozone’s crisis escalating out of control.
Oil price could plunge to $50
The oil price could almost halve later this year if the crisis in the Eurozone escalates, Credit Suisse believes.
THE WALL STREET JOURNAL
Esprit’s chairman steps down
Esprit Holdings’ chairman stepped down yesterday, a day after its chief executive said he would resign and less than a year after the fashion retailer embarked on a plan to revitalise its fading brand.
GM plans to close German factory
General Motors’ troubled European unit Adam Opel plans to stop producing cars after 2016 at its plant in Bochum, Germany, signaling the first closing of a major German auto factory since World War II.