GREECE SEEKS INVESTMENTS FROM LIBYA
George Papandreou will travel to Libya today for talks with?Muammer Gaddafi on possible investments in Greece as Athens struggles with its debt crisis. The Greek prime minister will discuss potential investments by Libya’s sovereign wealth fund and its state-owned energy groups with the country’s leader, officials said.
EMERGING SPIN-OFFS WEIGH INTO FTSE 100
An African gold mining company and an Indian energy company are set to become the newest members of the FTSE 100, adding to the growing weight of emerging markets commodities companies in the blue chip index. Last night’s closing prices suggest African Barrick Gold and Essar Energy will replace Thomas Cook and the London Stock Exchange.
RUSH TO CASH SEES FLOOD OF BOND SALES TO BANK
Banks and investment funds rushed to sell corporate bonds to the Bank of England yesterday as they sought to switch into the safety of cash and short-term government bills. Banks and funds tried to sell £507.3m of corporate bonds to the Bank of England under a programme designed to support the market for the provision of debt to companies. Analysts said banks had been seeking to raise cash due to concerns that the public debt crisis in the Eurozone could derail the world economy.
TRIO ACCUSED OF RITZ SALE FRAUD
A lawyer and two associates orchestrated a “well-targeted and extremely ambitious scam” in which they fraudulently tried to sell the Ritz hotel and casino in Piccadilly — which they did not own — for £250m, a court heard yesterday. Conn Farrell, a solicitor, Patrick Dolan and Anthony Lee were involved in the deal, a jury was told.
CAMERON FACES EU SHOWDOWN OVER BUDGET
David Cameron faces a showdown with fellow EU leaders at his first European summit next week as he resists calls to present his budget to Brussels. The Conservative leader is refusing to implement the plan being pushed by Herman Van Rompuy, the?EU President, in the first test of his determination to prevent any further powers slipping from Westminster.
FOXCONN TO PASS ON COST OF WAGE RISES
Foxconn, the Taiwanese company that assembles gadgets for Apple, Dell and Sony, said that it would start passing on to its customers the cost of massive wage rises at its Chinese factories. The announcement came only a day after Foxconn told workers in southern China it would raise their basic salary by about 70 per cent.
The Daily Telegraph
LLOYDS OFFERS 5.4PC CORPORATE BOND FOR SMALL INVESTORS
Lloyds TSB is to offer a bond paying more than five per cent for five years – but savers could get back less than their original deposit because the bond is tradable on the stock market. Lloyds is launching a corporate bond, similar to those normally sold to institutions, but targeted at private investors. The bonds can be bought and sold like shares via stockbrokers.
BANKING GIANTS REJECT SCOTTISH TAX POWER GRAB
Scotland’s major high street banks have rejected calls for broad tax-raising powers to be transferred to?Holyrood, arguing this would create an “unworkable” administrative quagmire. The British Bankers’ Association said the costs and burdens of a separate tax system north of the border outweighed any perceived benefits.
WALL STREET JOURNAL
FRANCE OPENS GAMBLING MARKET
France opened up its online horse-racing and sports-betting industry to competition yesterday, relaxing a state monopoly on gambling that traces back to the 16th century, as it looks to stabilise tax revenues from online bets. The move, timed to coincide with the World Cup, is an attempt to crack down on illegal betting websites.
PROPERTY INVESTORS EYE SPAIN
While Spain’s financial problems have shaken up Europe, some investors are looking at them as an opportunity. Their hope: some savings banks could begin to dispose of property faster than expected as part of their sudden and furious efforts to restructure. Driving the restructuring is the recognition by the government and the Bank of Spain that potential default is a great risk.