WHAT THE OTHER PAPERS SAY THIS MORNING
FINANCIAL TIMES
GREEK BANKS ISSUE €6.4BN IN BONDS
Three of Greece’s biggest banks have issued €6.4bn of government-guaranteed bonds likely to be used as security to obtain financing from central banks, a move that points to worsening market conditions amid talk of a disorderly Greek default. Alpha Bank, EFG and Piraeus on Friday issued the floating-rate notes, which analysts say will probably be used as part of a new €30bn liquidity facility created for cash-strapped Greek banks earlier this year.
MAN GROUP IN CHINA PUSH
Man Group, the world’s second largest hedge fund manager, is positioning itself for an expansion into mainland China as part of a drive beyond its base in Europe and the Middle East. The FTSE 100 listed group, which has suffered over the past quarter from a painful fall in assets under management, due in large part to the Eurozone crisis, has hired Yifei Li, one of China’s leading businesswomen, as its “China chair” to oversee the push.
SHOPS OFFERED £1 RENTS ON HARD-UP STREETS
Pound shops, selling cheap household goods and plastic toys, have become a familiar sight on high streets as the downturn has bitten. But the term takes on another meaning with reports of knock-down rents of just £1-a-year on hard-to-let shops.
ANGER OVER GOLDMAN INTEREST ON TAX BILL
The row over a tax deal struck between Revenue & Customs and Goldman Sachs took a fresh twist after the FT confirmed suspicions that the UK tax authority had not pursued the investment bank for payment of £10m in interest relating to a long-running legal dispute over bonuses.
THE TIMES
FIGHT LOOMS FOR SLICE OF THE CLEAN COAL PIE
A £1bn government fund to subsidise Britain’s first clean coal power plant is likely to be carved up between developers after ScottishPower withdrew from the project. The energy group said that the subsidy offered by the Government was not enough. Even so, under plans outlined to The Times by the Energy Minister Charles Hendry, developers will have to fight to share the same pot of money and so make do with less than half the original up-front sum.
ROYAL MAIL TO SPEND ‘EXTRA £15M’ GETTING CHRISTMAS SORTED
The Royal Mail is to plough an extra £15m into its Christmas operation to ensure that it delivers Britain’s two billion items of seasonal post on time. The postal service will invest the additional funds in nine “packet hubs”.
The Daily Telegraph
BRITISH BANKS FACING CLAIMS RISK IN SAUDI FRAUD CASE
HSBC and Standard Chartered could be dragged into a multi-billion dollar dispute between warring Saudi factions after the banks were forced to hand over thousands of potentially incriminating documents. A court in New York ordered the two British banks together with Citi and Bank of America to disclose confidential client documents, over-ruling pleadings that the evidence could be used against them. The documents relate to bank accounts held by Maan Al-Sanea, the Saudi billionaire.
GLAXOSMITHKLINE SCIENTIST FACE THEIR OWN DRAGONS DEN
GlaxoSmithKline is set to decide which of its scientists receive money to support research projects by holding a “Dragon’s Den”-style review to find the most promising assets.
THE WALL STREET JOURNAL
EUROPE
CITIGROUP TRIES TO CALM A JAPANESE WATCHDOG
Citigroup is moving to try to quell anger among regulators in Japan who are growing increasingly impatient at what they see as the bank’s inability to fix regulatory problems that have led to three scandals in seven years. The New York company has hired a recruiting firm to find a slate of new senior executives for Citigroup’s operations in Japan, possibly including its top executive, according to people familiar with the situation.
YEN LIKELY TO DENT TOYOTA RESULTS
Toyota is set to report lacklustre results for the July-September quarter tomorrow, battered by the yen’s surge to record highs against the dollar and lost production in the aftermath of a massive March earthquake. Analysts are keen to see if that prompts Toyota to reduce its earnings forecast.