GUARDIAN
QE EXPERIMENT HAS BACKFIRED, CONSULTANCY SAYS
By Phillip Inman, economics correspondent
The Bank of England's attempt to support the economy with massive injections of newly created money has failed to achieve its main objectives, according to an independent assessment of the Bank's policy of quantitative easing by the economic consultancy, CEBR. It found that all households have lost out with pensioners the worst affected. Douglas McWilliams, chief executive of CEBR, said: "Those pensioners hit hardest are those who have had to take out an annuity in the past four years, who will be retiring on much lower incomes”.
FINANCIAL TIMES
ECB HOLDS BACK FROM BOND YIELD CAP
By Michael Steen in Frankfurt and Robin Wigglesworth in London
The European Central Bank will refrain from publishing any formal cap on bond yields when it announces a new plan to buy distressed eurozone sovereign debt on Thursday, two people familiar with the matter said. The programme, dubbed “monetary outright transactions” in internal ECB discussion papers, was first outlined last month by Mario Draghi, the bank’s president, and – after fierce debate over its merits – is set to be revealed in detail following the meeting of the bank’s executive board and the 17 heads of eurozone central banks.
DAILY TELEGRAPH
RUPERT MURDOCH PAID $30M DESPITE PHONE HACKING SCANDAL
By Alistair Osborne, Business Editor
News Corporation boss Rupert Murdoch has foregone part of his annual bonus in the wake of the News of the World phone-hacking scandal – but still been handed a pay packet topping $30m.
A News Corp proxy filing ahead of the company’s AGM said the Compensation Committee had “determined to award only half of the qualitative portion of the annual bonus” in light of the scandal that has so far cost the company $224m and its bid for the whole of BSkyB.
CITY AM
LLOYDS IN NEW MIS-SELLING PROBE AS FSA PLANS CRACKDOWN
By Tim Wallace
LLOYDS is facing an FSA probe into the state of compliance practices which may have enabled mis-selling to take place back in 2011, it emerged yesterday. The revelation came hours after top regulator Martin Wheatley told the industry it has just 18 months to reorganise bonus rules to remove perverse incentives which can promote damaging sales practices.
THE SCOTSMAN
IRN-BRU MAKER AG BARR STARTS TALKS WITH BRITVIC OVER £1.4BN MERGER
By Gareth Mackie
IRN-BRU owner AG Barr has approached rival Britvic over a possible £1.4 billion merger that could create one of Europe’s largest soft drinks companies. Both companies stressed the talks were at an early stage and there was no certainty that a deal would take place, but they have already agreed a board structure, which would see AG Barr boss Roger White assume the role of chief executive of the combined group. If the deal goes ahead, Britvic shareholders would own 63 per cent of the merged entity, with AG Barr’s investors holding the remaining 37 per cent.
THE SUN
WE’RE KNACKERED SO SACK SLACKERS
By Steve Hawkes, Business Editor
One of Britain’s top bosses has savaged ministers over the economy — and told to them to axe public sector skivers. Peter Hargreaves of fund manager Hargreaves Lansdown said politicians are too obsessed with re-election to make hard decisions. Mr Hargreaves, 65 — who is worth £1billion - told Sun City: “The economy is knackered and the problem is government expenditure. You get that idiot Nick Clegg talking about a tax on the rich. He’s probably got five staff who do nowt.
DAILY MAIL
SPORTS DIRECT BOSS MIKE ASHLEY LOSES £26M PAY PACKAGE VOTE
By Roger Baird And Rupert Steiner
Billionaire Mike Ashley became the latest casualty in the City’s shareholder spring after Sports Direct investors voted against an incentive scheme that would have netted him £26m. Ashley, the chain’s founder and executive deputy chairman, saw 39 per cent of shareholders who were eligible to take part veto his three-year award. Newcastle United football club owner Ashley owns 71 per cent of the business, but could not vote on the package. He needed 75 per cent of the remaining shareholders to approve the scheme.
WWW.BBC.CO.UK
JAPANESE CAR MAKER HONDA IS TO INVEST £267M AT ITS UK PLANT
The site is expected to produce 183,000 cars this year which is forecast to rise to 250,000 within three years. Approximately 500 workers have been recruited this year in the company's biggest single UK investment programme for a decade, raising the total workforce to 3,500.
NEWS.SKY.COM
CAMERON'S PLAN TO REBUILD THE ECONOMY
By Jon Craig, Chief Political Correspondent
David Cameron and Nick Clegg will step up the Coalition re-launch with a raft of measures aimed at getting the economy moving. After completing their ministerial reshuffle, the Prime Minister and his Deputy will unveil a planning law shake-up in which fewer home and business extensions will require planning permission. Ministers hope homeowners and small businesses will seize the opportunity to extend their property and help the country build its way out of recession.
WWW.BLOOMBERG.COM
OIL, EURO RISE BEFORE ECB MEETING; ASIA SHARES PARE GAINS
By Richard Frost and Adam Haigh
Oil rose and the euro approached a two-month high as investors awaited details of a European Central Bank plan to stem the region’s debt crisis. Australia’s dollar strengthened while Asian shares pared early gains.
…. AND FINALLY …
DAILY TELEGRAPH
FISH OIL MAY DOUBLE BENEFITS OF EXERCISE FOR ELDERLY
Eating a portion of oily fish such as salmon or mackerel three times a week could help to protect the muscles from deterioration in old age by doubling the benefits of exercise, experts claim. By Nick Collins, Science Correspondent A combination of regular doses of fish oil and gym exercises improved the muscular strength of a group of women in their late sixties by 20 per cent in a new study. A control group who took part in the twice-weekly, 30-minute exercise sessions but did not take fish oil increased their muscle power by 11 per cent.
PRESSCHOICE DIARY OF BUSINESS AND ECONOMIC EVENTS TODAY
Morrison report second quarter results. Look out for what impact Asda’s acquisition of Netto has had as Netto operates in many of the same markets in the north of England. The Company had 475 stores across Britain. In June 2011, the Company bought Flower World, a wholesale flower business. Things have not been blooming as shares are down 4% over the past year.
Whitbread report second quarter results. Look out for the Olympic effect if any. It is well placed to have benefitted as it owns restaurants and hotels. It owns 619 hotels or 47,274 rooms in the UK and 387 restaurants. Its brands include Premier Inn, Costa Coffee, Beefeater Grill, Brewers Fayre, Table Table and Taybarns Its shares have risen 41% over the past year.
The MPC will publish its latest decision on interest rates. Also look out for any more moves on Quantitative Easing.
Did you know? - The word TIP is the acronym for “To Insure Promptness.”
