What the other papers say this morning – 03 February 2014
FINANCIAL TIMES
Spain will not interfere on Scotland
Spain has no intention of interfering in Scotland’s push for independence and is willing to consider an eventual Scottish application to join the EU as a separate state, the foreign minister said in remarks that will bolster the nationalist campaign. Madrid has long been among the most vocal opponents of separatist movements in Europe, reflecting its struggle to contain secessionist pressures in Catalonia.
Intesa move prompts bad bank debate
Intesa Sanpaolo is working on plans to become the first Italian lender since the financial crisis to set up an internal “bad bank” by setting aside a chunk of its €55bn of gross non-performing loans ahead of banking stress tests by the European regulator. Carlo Messina, Intesa’s new chief executive, and chairman Giovanni Bazoli are expected to discuss the move with shareholders of Italy’s second-biggest bank by market capitalisation in the next few weeks, according to people familiar with the matter.
Ministry of Defence seeks contract cuts
The Ministry of Defence wants to shave £1.5bn off the money it pays the defence industry annually to maintain and retool military equipment. The targeted cuts – 20 per cent of the MoD’s £7.5bn annual spending on support contracts – could affect UK military capability, industry chiefs say.
THE TIMES
Compass caters for change of audit
The world’s biggest caterer has put its audit contract on the market for the first time in 27 years. The “Big Four” and some other large professional services firms are understood to have entered bids for the Compass mandate, which has been held by Deloitte since 1987.
State Street fined £23m by FCA
State Street acted with “complete disregard” for its customers by deliberately overcharging for services, the Financial Conduct Authority said yesterday, as it fined the bank nearly £23 m. “We deeply regret this matter. We have worked hard to enhance our controls,” State Street said.
The Daily Telegraph
Smart meter flaws to add £1.8bn
Consumers could be saddled with an extra £1.8bn on their energy bills because of flaws in the Government’s plan to install “smart” gas and electricity meters in every home by 2020, suppliers have warned. EDF Energy, ScottishPower and npower are now calling on ministers to review the £12bn nationwide rollout of the meters
Firms face EU blacklist for crime
Companies and banks that fail to prevent financial crime by their staff could face vast fines and be blacklisted from European contracts under a change to the Bribery Act being considered by the government.
THE WALL STREET JOURNAL
EUROPE
KKR to open first Spain office
KKR is set to open its first office in Spain today, as the buyout specialist seeks to build on its €1bn stake in a country that is attracting a growing volume of investment from abroad.
Ride Along still cruising at box office
With much of America focused on the Super Bowl, it was a quiet weekend at the movie box office, where buddy cop comedy “Ride Along” held onto its top spot for the third weekend in a row. The Universal Pictures movie, which opened over the Martin Luther King holiday weekend with $48.6m, made $12.3m this past week.