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									                                                 Newspaper Headlines
                                                 18 April 2011


                                                 The Times
                                                 Asda regroups to take the fight to Tesco: Asda has overhauled its
                                                 management in a shake-up that paves the way for a push online and in
                                                 financial services to close the gap with Tesco. Its Chief Executive Andy Clarke
                                                 has quietly made sweeping changes at the Wal-Mart-owned retailer that
                                                 concentrate more power in the hands of Rick Bendel, its marketing supremo,
                                                 and Charles Redfield, the Chief merchandising officer who arrived from Wal-
                                                 Mart last year.
                                                 Hotel of choice for spies, stars, PMs and MPs: It may not have the luxury
                                                 cachet of newly restored London hotels such as the Savoy or the Corinthia,
                                                 but glamour can come in many guises. If you can picture James Bond at the
                                                 Savoy‟s American Bar, demanding something shaken, not stirred, then St
                                                 Ermin‟s Hotel in Westminster might argue that it can go one better.
                                                 Oligarch‟s Ownership battle casts doubt over future of Welsh steelworks:
                                                 Plans by one of Russia‟s richest men to invest £3 billion in the future of a small
                                                 Welsh steelworks could be thrown into doubt by a legal challenge over
                                                 Ownership of the facility. Mir Steel, which employs about 100 people in
                                                 Newport, was bought out of administration two years ago and is now owned
                                                 by the Russian steel producer Mechel.
                                                 Beancounters‟ bible goes to online-only delivery: It is a trend that is splitting
                                                 the publishing industry and has led to speculation that even a national
                                                 newspaper such as The Guardian might go down the same route: publications
                                                 are withdrawing from printed editions to concentrate solely on online
                                                 versions.
                                                 Cutting back on MoTs „will cost 40,000 jobs in garages‟: Plans to relax the
                                                 MOT testing regime will cost 40,000 jobs, including thousands of garage
                                                 juniors, according to claims from the British motor trade. Detailed briefings
                                                 from the Transport Secretary Philip Hammond indicate that his department is
                                                 looking to target the MoT as part of election promises to get the
                                                 Government off the back of drivers.
                                                 Investors enjoy best year since 2007 with bumper payout: Dividend payments
                                                 by British listed companies are now comfortably back to their pre-crash levels,
                                                 according to research from Capita Registrars. Dividends declared in Britain
                                                 totalled £15 billion in the first quarter of this year.
                                                 Will stitch-up unravel?: As Dominique Strauss-Kahn smoothly sidestepped
  Contact Details                                questions last week about his ambitions to be French president, talk in
  Manoj Ladwa                    0207 392 1487   Washington had turned already to who will replace him at the helm of the
  Index and Equity Desk          0207 392 1479   International Monetary Fund.
  Institutional Equities         0207 392 1477
                                                 Interest rate rise would be disaster, say economists: A group of leading
  Commodities                    0207 392 1403   economists urge the Bank of England‟s rate-setting committee not to raise
  Options                        0207 392 1472   interest rates for the next seven months because doing so could have
  Currencies                     0207 392 1455   “disastrous consequences” for Britain‟s fragile recovery. The respected Ernst &
  Internet Dealing Desk          0207 392 1434   Young ITEM Club says that interest rates should be kept on hold at a record
                                                 low of 0.5% until November, when there will be reliable evidence that the
 We are also available on:                       corporate recovery is fully under way.
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                                                                    18 April 2011



    Has soap operas‟ bubble been popped by the web?: Video killed the radio
    star 30 years ago. Now Facebook and reality TV are poised to bump off
    another icon of U.S. popular culture: the daytime soap. ABC, one of America‟s
    big three television networks, dismayed millions of fans last week when it
    cancelled All My Children and One Life to Live.
    Where Groupon led, more and more intend to follow: Just as it is hard to
    keep up with Groupon‟s exploding user numbers and revenues, it is becoming
    hard to count the three-year-old company‟s growing list of competitors.
    About 200 Groupon rivals exist. These include Living Social, Bloomspot,
    Scoutmob, Tippr and BuyWithMe — not to mention the likes of Google,
    Facebook, Microsoft and Yahoo! — all of which want a piece of the social
    discounts market.
    Ripples from tsunami spread around world: Take a short walk from the Sony
    factory and the intensity of Japanese industry becomes apparent, even in a
    relative backwater. Along one side road is a vending-machine factory, part of
    the complex that has put 5.5 million machines on Japan‟s streets and was
    making inroads across Asia.
    Households feel the pain as cuts take effect: Households are facing the
    biggest squeeze on their finances in more than two years as the cost of living
    continues to soar. The financial researcher Markit found in its monthly survey
    of 1,500 Britons that 36% of households said that their financial situation had
    worsened in April, while only 7% reported an improvement.



    Financial Times
    Huawei ends its board secrecy: Huawei has for the first time made public the
    members of its board, in an attempt to improve transparency in order to
    address U.S. concerns about its alleged links to the Chinese military.
    Costs of the BP oil spill: BP has estimated that this will cost $13.6 billion,
    including stopping the leak from the well and cleaning up the spilt oil.
    U.K. dividends set for an 8% rise in 2011: U.K. dividends grew faster in the
    first quarter of this year than at any time since the collapse of Lehman
    Brothers, according to research from Capita Registrars.
    Hospitality provides trade for U.K. potteries: Britain‟s ceramic manufacturers
    may have missed out to China in the competition to supply the official
    porcelain to be used at this month‟s royal wedding.
    Loophole fears over Vickers bank rules: European banking groups could take
    advantage of a loophole to escape higher capital requirements recommended
    by the Vickers Commission report on U.K. bank restructuring, fuelling
    concerns they will secure a competitive advantage in high street banking.
    Testing times await disaster response units: Standing on a steel pad
    surrounded by gravel on the outskirts of Houston is the piece of the puzzle
    that eluded BP last year as its Macondo disaster unfolded.
    Carbon emissions insurance to be launched: Investors in the fast-developing
    market for carbon credits will for the first time be able to buy insurance to
    protect them from the political uncertainty that underwriters believe has held
    back emissions trading in Europe.




2           Newspaper Headlines
                                                                     18 April 2011



    Competition and the banks: Britain has long struggled to make its banks
    more competitive, and a series of official reports in recent years has
    counselled measures that might bring this about. Most have foundered on
    the rock of consumer apathy.
    Luxury carmakers eye India‟s super-rich: Global ultra-luxury carmakers are
    pouring into India. The country that is home to almost half a billion of the
    world‟s poorest citizens, as well as the largest national group of billionaires
    outside the U.S., has become the next key market for sports cars worth more
    than $1 million.
    OFT fears narrowing range of powers: The Chairman of the Office of Fair
    Trading, which is facing a merger with the Competition Commission, is calling
    for the new combined authority to retain its consumer protection powers so
    it can continue to tackle complex cases.
    RBS set to sell real estate debt: Royal Bank of Scotland is preparing to sell
    large portfolios of real estate debt in Germany and the U.S. as it continues to
    dispose of non-core businesses.
    Lex:
     Japan‟s resilience: Just over five weeks on from the horrendous east
      Japan earthquake, the nation‟s recovery is well under way. Equities have
      clawed back about half of the ground lost as investors have taken more
      rational views of the impact on profits (scaffolders, grouters and dam-
      builders have done well; banks and electronics companies badly). Little
      can be said about the ultimate damage to the economy, though, except
      to note that it will be significantly worse than after the localised Kobe
      quake of January 1995, when real gross domestic product did not fall.
      According to cabinet office estimates, damage to Japan‟s gross capital
      stock this time is in the range of ¥16,000 billion to ¥25,000 billion, or 3 to
      5% of nominal GDP, compared with Kobe‟s ¥9,900 billion, or 2%. Beyond
      that, a shortage of hard-to-replace components is hitting industrial
      production in non-affected areas. Shutdowns of nuclear and thermal
      power plants are curbing output in areas that depend on them (Tokyo
      Disneyland reopened on Friday but closed early to conserve power). On
      current trends electricity supply may be about 15% short of peak demand
      in Tokyo and Tohoku over the summer.

     Turkey: overheated: Durmus Yilmaz has been something of a riddle as
      Governor of Turkey‟s central bank (CBRT). He has had a steady hand on
      the inflation tiller and he staked his independence from the government
      early on after it mishandled the 2006 succession. But, as he retires this
      week, he bequeaths an unorthodox monetary policy on his successor that
      has highlighted the imbalances that threaten Turkey‟s economy. With an
      election looming, the current account deficit widening and banks
      screaming that monetary policy is biting into their profits, new Governor
      Erdem Basci has an overflowing in-tray. Turkey‟s gross domestic product
      grew at an annual rate of nearly 9% in 2010 after shrinking 4.7% the
      previous year. The CBRT has chosen to cool soaring lending and domestic
      demand by raising banks‟ reserve requirements steeply rather than by the
      more direct step of lifting interest rates. It reckons that this type of
      measure will drain enough liquidity from the market to restrain lending,
      which is expanding at an annual 35% clip against a target of 25%. The
      CBRT thinks the liquidity squeeze will begin to take effect from the
      second quarter of 2011. Some $33 billion of liquidity may already have
      been sterilised, according to BGC Partners.




3           Newspaper Headlines
                                                                     18 April 2011



     Vallar: raising the stake: Who would true Vallar see, let him come hither.
      When the London-listed cash shell announced its $3 billion purchase of
      25% of Indonesia‟s Bumi Resources and 75% of Berau Coal Energy in
      November, it was not quite the acquisition investors expected.
      Established by Nathaniel Rothschild and seasoned mining executive James
      Campbell, Vallar‟s mission was “to acquire a single major company active
      in the global metals, mining and resources sector” and seize
      “opportunities to acquire controlling interests”. Instead, its maiden deal
      was a reverse takeover that gave coal producer Bumi‟s shareholder Bakrie
      Group 43% of Vallar and Berau‟s main vendor 25%. That, however, was
      only the start: the pack is being reshuffled. Vallar wants to lift its stake in
      Bumi via a further share exchange to between 40 and 51%, drawing key
      Bumi investors on to its own register. Indonesia-centric Bumi shareholders
      may be restricted by their mandates from holding London-listed shares.
      But foreign shareholders are likely to be lured by the significant increase
      in index-tracker demand for shares in Vallar that should accompany its
      eventual inclusion in the benchmark FTSE 100 index.




    The Daily Telegraph
    Banks‟ claims they will move abroad are „empty threats‟ says Financial
    Stability Board Boss Svein Andresen: Claims by banks that they will relocate to
    foreign shores in protest at strict new rules are largely empty threats, the
    global financial regulator has suggested.
    Glencore Chairman Simon Murray hits back at Lord Browne over corporate
    governance claims: Glencore has no corporate governance problems, its new
    Chairman Simon Murray has declared, blaming reports to the contrary on
    Lord Browne, his one-time rival for the job of steering the commodities miner
    and trader through Britain‟s biggest stock market flotation.
    Burberry to invest in London ahead of Olympics: Burberry, the luxury goods
    brand, is planning to “aggressively reinvest” in London by reconfiguring its
    store portfolio and opening new retail space, according to Chief Executive
    Angela Ahrendts.
    Government picks U.S. companies over U.K. firms to operate flagship website:
    David Cameron‟s “Start up Britain” enterprise campaign has been criticised
    after it emerged that two U.S. companies operate one of its flagship small
    business engagement websites.
    U.K. bankers take Bahrain to court over human rights „violation‟: Three British
    bankers detained in Bahrain for more than a year are taking the Gulf
    kingdom to the United Nations Human Rights Council (UNHRC) over what
    they describe as “serious and systemic violations” of their rights.
    Goldman Sachs tells investors to take profits from oil, cotton and copper:
    “Sell oil, cotton, copper, soybeans and platinum!” urged the commodities
    oracles at Goldman Sachs, in a surprise note this week.
    The Questor Column:
     Fancy a dip in emerging markets? Try Templeton: The Templeton
      Emerging Markets Investment Trust is one of the best ways to play
      growth in emerging markets. Mark Mobius, the emerging markets guru
      who founded the fund, has a very bright team around him that has
      enjoyed significant success. “There is a growing realisation that, given




4            Newspaper Headlines
                                                                     18 April 2011



        what is happening in Greece, Portugal, Spain and Ireland, maybe the
        developed markets are not as safe as they may appear,” he said. “Trust in
        emerging markets is growing.” He also said that no investors could ignore
        India, despite recent weakness, and that China‟s recent
        underperformance was because of a raft of company flotations that
        soaked up liquidity from the market. He is more interested in so-called
        “red-chip” stocks listed in Hong Kong rather than those listed in China
        itself. The unaudited net asset value (NAV) of the fund including income
        on 11 April was £2.397 billion, representing a NAV per share of 726.54p.
        The trust was first recommended on 05 January, 2009 at 284p.
        Templeton Emerging Markets IT. 672p. Questor Says “Hold”.



    The Independent
    China steps up inflation fight with bank reserves hike: China stepped up
    moves to head off inflation by raising bank reserve requirements for the
    fourth time this year. The move, which comes after an increase in benchmark
    interest rates at the start of April, is the seventh since Chinese monetary
    authorities began tightening policy in October.
    Multi-channel retailers cash in on online trend: Online shopping has gone
    from being an occasional exercise among a select group of shoppers to the
    routine method for growing ranks of increasingly picky consumers, according
    to a survey published this morning.
    Saudi Arabia says oil market is oversupplied: Saudi Arabia reduced its oil
    production in March, the Kingdom‟s oil Minister, Ali al-Naimi revealed,
    claiming the world oil market was oversupplied.
    NHS sues Reckitt for £89 million over Gaviscon supply: The Health Secretary
    Andrew Lansley and the National Health Service are suing the consumer-
    goods group Reckitt Benckiser for £89 million over the supply of Gaviscon, the
    company‟s heartburn medicine.
    U.S. debt limit will be raised, Geithner says: Congress will have to raise the
    country‟s debt limit, and may need to do so before a deal on future budget
    deficits is agreed, the U.S. Treasury Secretary Timothy Geithner has said.
    Call for new set of sustainability rules: A lack of meaningful benchmarks often
    stands in the way of companies making progress in their corporate
    sustainability strategies, according to a new survey from KPMG.
    Glencore‟s banks value trader at up to $69 billion: Glencore, the commodities
    trader which is planning to raise up to $11 billion (£6.7 billion) in a flotation
    planned for next month, is already worth as much as $69 billion (£42.3
    billion), with its earnings set to double in two years, according to research
    from two banks underwriting the Swiss firm‟s potentially record-breaking
    listing.



    The Guardian
    SFO looks into scam that fooled North Korea: The Serious Fraud Office is
    looking into an elaborate scam that took in the former England Football
    Manager Sven Goran-Eriksson, former spymaster Sir John Walker and the




5            Newspaper Headlines
                                                                    18 April 2011



    North Korean government. Investigators are also looking at how the same
    fraudster took control of almost half of a London investment bank without
    paying for the shares.
    IMF raises alarm over exchange traded commodities funds: One of the most
    successful investment vehicles of the last decade could be sowing the seeds of
    the next financial crisis, a global financial watchdog warned.
    BA and union Chiefs to hold talks this week: Senior figures at British Airways
    and the Unite trade union will meet this week in the latest attempt to solve
    the long-running cabin crew industrial dispute.
    Morrisons joins supermarket petrol war: Morrisons has joined the
    supermarket petrol war by knocking 6p a litre off petrol and diesel prices at
    its 296 garages for three weeks from Monday 18 April.



    Daily Mail
    Bank shake-up could hit share values: Leading bank shareholders have
    warned that Independent Commission on Banking plans to ring-fence retail
    operations could have a serious effect on their share values, despite early
    claims that it had let them off the hook.
    Goldman accused of „the big short‟: At the time it seemed just like any other
    meeting on the 30th floor of Goldman Sachs‟ New York headquarters.
    Care home firms seek more NHS patients: The Bosses of Britain‟s four major
    private healthcare groups are to meet next month to set new standards for
    looking after NHS patients in an attempt to persuade the Government to use
    their services more.
    AstraZeneca to sell £1.3 billion dental unit: Pharmaceuticals giant AstraZeneca
    has begun a £1.3 billion auction of its dental implants and medical devices
    division as it looks to focus on its core medicine business.



    Daily Express
    Bidding race is on for RAC: The private equity Owner of Europe‟s largest
    second-hand car dealer is gearing up to buy motor rescue firm the RAC, which
    was recently put up for sale by insurance giant Aviva.
    U.K. growth depends on firms splashing the cash: British firms must splash
    their cash to take advantage of an improving world economy and boost
    dividend payouts to investors or run the risk of being taken over “on the
    cheap”, a leading economic forecaster warns.
    Waste is a burning issue at Powerhouse: A renewable energy firm planning to
    turn tyres and sewage into power is joining Aim via a reverse takeover.
    BT rings in changes with much improved profits: There are signs that BT is
    “turning around”. Investors may be familiar with its headline-grabbing £9
    billion pension fund deficit in December 2008 and less so with its compelling
    story.
    Virgin flexed for takeover: Sir Richard Branson‟s Virgin Active is shaping up
    for a takeover of rival gym chain Esporta.




6           Newspaper Headlines
                                                                  18 April 2011



    Oracle moves over from plus this week: A coal miner planning to develop a
    £200 million open-cast pit in Pakistan is expected to debut on Aim this week.



    The Scottish Herald
    Alliance Trust costs up as Chief given 34% rise: Alliance Trust has revealed
    that Chief Executive Katherine Garrett-Cox enjoyed a 34% pay hike last year
    and that its battle with activist shareholder Laxey Partners has added
    significantly to £1 million to the company‟s expenses.
    Dynamic duo set sights on power of the sea: While banks insist they are
    playing fair by small firms, some sector watchers complain that the
    technology hopefuls Scotland is relying on to power economic growth in
    future are finding it ever harder to raise funding from newly risk-averse
    lenders.
    Survey points to better times in labour market: The improvement in Scottish
    labour market conditions continued to gather pace last month with the
    demand for permanent staff rising at the fastest pace since September 2007,
    an influential survey has revealed.
    Dismantling the Lloyds empire: More than two- and-a-half years after the
    notorious City cocktail party at which Gordon Brown and Sir Victor Blank
    cooked up possibly the unhappiest takeover in history, Sir John Vickers‟
    Independent Commission on Banking (ICB) last week took its turn to rub salt
    in the wounds of Lloyds Banking Group.
    Red alert for endowment mortgage holders: A leading independent analyst
    has warned that many homebuyers who took out endowments 25 years ago
    to pay off their mortgages are likely to be shocked to find themselves short
    of cash to pay off their home loans when their policies mature this year.




       Market Round Up
       FTSE 100 rose 0.5% to 5,996.0.
       FTSEurofirst 300 index gained 0.3% to 1,131.7.
       DJIA gained 0.5% or 56.7 points to 12,341.8. NASDAQ edged up
        0.2% or 4.4 points to 2,764.7. S&P 500 closed 0.4% or 5.2 points
        higher, at 1,319.7.
       Nikkei 225 index is trading 0.1% lower, at 9,586.9.
       In Asia, crude oil for May delivery is trading 63 cents lower at
        $109.03 per barrel.
       At 0400 BST today, the GBP is trading marginally lower against the
        USD at $1.6307, slightly higher against the EUR at €1.1333 and
        0.3% lower against the JPY at ¥135.22.




7           Newspaper Headlines
                                                                                                                              18 April 2011




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 8                                                        Newspaper Headlines

								
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