Wednesday Newspaper round up

The Guardian

Headlines… CBI attacks Vince Cable’s executive pay plan…
Wall Street hits post-crisis high…Millen questioned over Kaupthing…Teenage fiction and iPads now in official UK shopping basket…Prudential boss says new EU rules could force insurer out of UK…G4S chief waives £750,000 bonus…Vincent Tchenguiz settles legal row

The business secretary,Vince Cable, will be warned on Wednesday that he risks turning shareholders into “micro-managers” when he launches a consultation on handing investors extra powers to clamp down on executive pay. The business secretary is being urged by the CBI, the employers’ body, not to press on with his plans to give shareholders a ‘binding’ vote on remuneration as he prepares to endorse a report calling for the creation of a much stronger UK equivalent of Germany’s Mittelstand, the small and medium-sized business sector,”

The Daily Telegraph.

Reporsts that”Greece” is already off course & likely to miss budget targets attached to the €130bn bailout programme, officials have warned. Athens has probably cut spending enough to bring its primary deficit down to 1.5 per cent this year as agreed. However “current projections reveal large fiscal gaps in 2013-14” according to a leaked draft report by the European Union, the International Monetary Fund & the European Central Bank.

Tesco, the country’s largest private sector employer, is set to raise its pension age from 65 to 67 in a move which could well be followed by other major UK companies. The supermarket group informed 200,000 workers yesterday that it wants to raise by two years the age at which they can claim their full pension. Britain’s biggest supermarket, also announced that it intends to move the inflation index it uses to calculate annual payment increases from the retail prices index to the ‘cheaper’ consumer prices index, which excludes mortgage payments, house price depreciation & council tax.

The Times

The Times says that the Chancellor, George Osborne, plans to benefit from Britain’s ‘safe-haven status’ by issuing First-World-War-style bonds of 100 years and more. Osborne will announce details in the Budget next week to borrow money cheaply from institutional investors, such as pension and foreign wealth funds, and pay it back over an extended period, saving money for future taxpayers by locking in today’s historically low interest rates for decades to come.

The FT

Headlines…Wall Street rally fuels Asian gains … US data and bank stress test results hearten bulls
Fed strikes optimistic tone on economy… No hint of further monetary easing…Endemol debt deal could smooth restructuring
UK chancellor looks at 100-year gilt… ‘Osborne bond’ would take advantage of low borrowing costs

Banks in the USA are set to return money to shareholders after the Federal Reserve released the results of ‘stress tests’ on 19 financial groups showing that all but four,including Citigroup, had passed the exercise. Results of the test, which were rushed out two days early after the Fed said it was concerned about information leaking, sparked a rally in US bank stocks.

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