THE PAIN IN SPAIN, QUESTIONS OF QE IN THE UK, RALEIGH HOPS ABROAD AND POTENTIAL FOR MORE REFORM IN CHINA
THE DAILY DOZEN OR SO OF THE MOST EYE CATCHING FINANCIAL NEWSPAPER ARTICLES
DAILY TELEGRAPH
UK DOUBLE-DIP RECESSION FUELS ARGUMENT FOR MORE QE, SAYS MPC'S MARTIN WEALE
By Philip Aldrick
The case for more money printing to bolster the recovery has been strengthened by the UK's slump back into recession, according to a leading member of the MPC . Martin Weale's comments run counter to the Bank's clear recent signal that QE is likely to have stopped at £325bn. Following the 0.2pc contraction in the three months to March and 0.3pc in the final quarter of 2011, economists have called for low interest rates for the foreseeable future and for the Coalition to start taking decisive action
GUARDIAN
SPAIN'S CREDIT RATING DOWNGRADED
By Phillip Inman, economics correspondent
Spain has had it's credit rating downgraded three notches from A to BBB+ by the credit rating agency Standard & Poor's. The downgrade is expected to push up the cost of borrowing immediately, as investors become increasingly worried over Madrid's inability to cut spending without sending its economy into a deeper recession.
THE SUN
RALEIGH HOPPERS ABROAD
By Steve Hawkes, Business Editor
Iconic UK bike maker Raleigh is going Dutch — in a £50million deal that triggers a fortune for the company’s boss. Holland’s Acell yesterday revealed the swoop, which sees another part of British heritage move overseas.
FINANCIAL TIMES
CHINA REFORM DRIVE BOOSTED BY BO’S FALL
By Jamil Anderlini in Beijing
Reformers within the Chinese Communist party are trying to exploit the recent ousting of Bo Xilai by increasing the rate of reform , say senior officials. Wen Jiabao, the premier, and his allies hope to build support in the run-up to the 18th party congress, at which most of the country’s senior leaders will step down. Many of Mr Bo’s former allies argued strongly against reform.
GUARDIAN
ASTRAZENECA BOSS DAVID BRENNAN QUITS UNDER PRESSURE FROM INVESTORS
By Julia Kollewe
The chief executive of drugs group AstraZeneca, David Brennan, quit after more than six years in the post, following pressure from shareholders who had called for a radical shake-up. The boardroom reshuffle, which also includes the early departure of the chairman, came just hours before it held its annual shareholder meeting. While the company would not comment about his retirement package, which is still being finalised, Brennan could walk away with about £5m – after receiving more than £9m in pay, perks and shares last year.
DAILY MAIL
BARCLAYS BRACED FOR INVESTOR SHOWDOWN OVER LAVISH BONUSES
By James Salmon
Barclays will be forced to defend its lavish bonuses and its payment of chief executive Bob Diamond’s £5.75m Yesterday evening the bank also found itself at loggerheads with the Government as business secretary Vince Cable launched an attack on its multi-million-pound pay packages, urging investors to vote against Barclays’ remuneration report. The outburst overshadowed the bank’s bumper profits of £2.45bn for the first quarter, up 22 per cent on the previous year.
DAILY EXPRESS
SHELL IN PROFITS BOOST
The company saw profits rise 11 per cent to $7.7billion, fuelling a dividend hike and rise in the shares. They forced chief executive Peter Voser to fend off accusations the company is making money off the back of motorists having to pay ever higher petrol prices.
BBC.CO.UK
BANK OF JAPAN ANNOUNCES FRESH STIMULUS TO BOOST GROWTH
The Bank of Japan (BOJ) has increased its stimulus programme for the second time in as many months in a bid boost the country's economic growth. The central bank said it would expand its purchase of Japanese government bonds by 10tn yen ($123bn; £76bn). The move comes as Japan's economy continues to struggle amid a slowdown in key export markets such as the US and eurozone and weak domestic demand.
