DAILY TELEGRAPH
APPLE'S IPHONE 5 'COULD ADD 0.5PC TO US GDP'
By Andrew Trotman
Apple's iPhone 5 could add up to 0.5pc to US GDP, a top analyst at JPMorgan has claimed.
The iPhone 5 is expected to be unveiled on Wednesday. JPMorgan's analysts expect Apple to sell 8m iPhone 5s before the end of the year at around $600 each. If $400 of each unit has parts and service which come from the US this would create a $3.2bn (£2bn) boost for the economy, and an increase of 0.33 percentage points in annualized growth.
FINANCIAL TIMES
BARCLAYS TO SHRINK CONTROVERSIAL TAX UNIT
By Patrick Jenkins and Daniel Schäfer in London
Barclays will take the axe to its controversial tax structuring unit, as the UK lender seeks to clean up its image in the wake of a succession of scandals. The business, which at its peak may have generated as much as three-quarters of profits at Barclays’ investment banking operation, will be shrunk dramatically as part of the bank’s Project Transform under new chief executive, Antony Jenkins.
DAILY TELEGRAPH
DEBT CRISIS: ECB'S DRAGHI PLAN DOUSED BY REBELLIONS IN GERMANY AND GREECE
By Louise Armitstead, Chief Business Correspondent
A delay to the highly anticipated German court decision on bail-out funding and a rebellion in the Greek government over austerity doused hopes that the European Central Bank will be able to stem the crisis after all. Germany’s federal constitutional court said it might be forced to delay its ruling on the legality of the European Stability Mechanism (ESM) because of an eleventh hour objection by an MP.
CITY AM
BRITAIN’S YOUTH ARE TURNING TO ENTREPRENEURSHIP TO BEAT THE RECESSION
By JULIAN HARRIS
A NEW generation of entrepreneurs will lift the UK out of its devastating economic recession, according to a report out this morning by a leading educational society. The proportion of surveyed twenty-somethings who want to start their own business rocketed from 17 per cent in 1998 to 29 per cent in 2010, the research shows.
GUARDIAN
TYCOON BRANSON RAILS A LOT AND STEAMS UP OVER RAIL FIRM'S NUMBER CRUNCHING
By Michael White
That professional British underdog, Sir Richard Branson, sounded like Oscar Pistorius after losing the Paralympic T44 200 metres when he turned up at Westminster to complain that his rival in the 550 km race had won the Euston-to-Glasgow franchise by cheating. "Bad loser, are you?" MPs politely asked. Monday was all about FirstGroup boss Tim O'Toole's unfair number-crunching, which had cost Virgin Trains its West Coast mainline network. It was a flawed decision Branson told the Commons transport select committee.
THE SUN
YOU’RE FIRED! MINISTERS MAKE IT FAR EASIER FOR BOSSES TO SACK BAD WORKERS
EXCLUSIVE
By Tom Newton Dunn, Political Editor
Ministers will make it easier for bosses to sack bad workers without any legal backlash. The shake-up includes streamlining the employment tribunal system, cutting compo and slashing redundancy rules. The package has been drawn up to answer small businesses’ bitter complaints about rigid red tape and seeing their cash flows drained by expensive legal bills. The Coalition will insist the changes are vital to persuade firms to take on more staff. But they will also spark uproar from unions.
DAILY MAIL
INCENTIVES ARE THE KEY TO XSTRATA TIE-UP WITH GLENCORE
By Rob Davies
The fate of Glencore’s £23bn takeover of Xstrata could hinge on incentive payments designed to ensure that its most talented managers are prepared to work for Ivan Glasenberg. Qatar Holding, which used its 12 per cent stake to block a merger, is by no means certain to accept the new takeover bid of 3.05 Glencore shares for every one of Xstrata’s. If the emirate’s sovereign wealth fund can live with the price, it is expected to seek assurances that Xstrata’s highly-rated management team will remain substantially unchanged.
DAILY EXPRESS
RACE AGAINST TIME IN BATTLE OVER XSTRATA
Xstrata chief executive Mick Davis
By David Shand
A deadline of two weeks was set yesterday to decide the fate of an $80billion (£50billion) mining megamerger after commodity trader Glencore International announced its final offer for Xstrata.
Glencore, which owns 34 per cent of the thermal coal exporter, raised its offer from 2.8 to 3.05 of its shares for each Xstrata share.
WWW.BBC.CO.UK
BARCLAYS NEW BOSS PLEDGES REFORMS TO REBUILD REPUTATION
The new boss of Barclays, Antony Jenkins, has said that he will be quick and bold in making reforms at the bank. Mr Jenkins is faced with rebuilding the banks' reputation after a series of scandals, including Libor interest rate-fixing. He said the bank will move to stop activities that have hurt its reputation in the past. However, he said there would be no break up of operations by selling off the bank's investment arm.
NEWS.SKY.COM
JOB PROSPECTS HIGHEST SINCE FINANCIAL CRISIS
Employers of all sizes are planning to hire new staff despite the depressing economic outlook, new research shows. The prospects of getting a job in the UK are at their highest level since the economic crisis took hold in 2008, new research has shown. Employers of all sizes plan to buck the economic downturn and hire new staff in the last three months of this year, according to Manpower's survey of more than 2,000 employers.
WWW.BLOOOMBERG.COM
BILL GROSS SEES HIGHER LONG-TERM YIELDS AMID REFLATION
By Sharon Chen and Wes Goodman
Long-term bond yields will be higher than short-term rates in the U.S. and Europe because of reflation, according to Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co. A period of reflation is under way, he wrote. Investors should expect “higher long rates” and “low short rates,” according to Gross, who is based in Newport Beach, California.
