WHAT THE OTHER PAPERS SAY THIS MORNING
FINANCIAL TIMES
DUBAI WORLD DEBT DECISION NEARS
Crunch time is approaching for Dubai World as the government is nearing a decision on how much money it can apportion to deal with the holding company’s estimated $22bn debt pile, most of which is held by one of its subsidiaries, the developer Nakheel. The Dubai Financial Support Fund is expected to make a recommendation either this week or next week.
FEARS OVER EC DERIVATIVES RULES
Europe’s biggest industrial companies face the prospect of having to raise tens of billions of euros because of a proposed regulatory crackdown on “over-the-counter” derivatives. Eon, Europe’s largest utility, said that it could have to raise about €7.5bn in new credit lines or extra cash reserves if the proposals from the European Commission were passed.
HEDGE FUNDS WIN CHURCH OF ENGLAND BLESSING
Barely a fortnight after attacking the modern day equivalent of biblical money changers in Canada, leaders of the Church of England have sprung to the defence of an oft-reviled pillar of the finance industry. While greater regulation of some sectors of the industry is necessary, the church has concluded that hedge funds are still needed to maintain the temple.
PORSCHE STAFF TO GET BONUSES
Porsche became one of the few carmakers in the world to pay a bonus to employees this year, highlighting German industrial companies’ fear of losing their skilled workforces amid the economic crisis. The sports carmaker, which this summer agreed to be taken over by Volkswagen, is labouring under net debt of more than €9bn but said it would pay its 12,500 employees €1,100 each for the fiscal year that ended in July.
THE TIMES
US LAW FIRM EYES CITY LAUNCH
One of America’s biggest law firms is defying the turmoil in the commercial legal market with plans to build a London office of more than 200 lawyers within three years. Greenberg Traurig, the tenth biggest law firm in the United States, has hired Paul Maher, who was formerly vice-chairman of Mayer Brown, another big American firm, to build a City office.
BIG FOUR FACE TOUGH NEW RULES
Britain’s top accountancies stand to lose hundreds of millions of pounds in fees after the financial reporting watchdog said that it would consider tougher restrictions on the services they can sell to listed companies whose accounts they audit. The Auditing Practices Board (APB) said it would review its rules designed to safeguard audits amid growing concern over the firms’ objectivity.
THE DAILY TELEGRAPH
RISE IN CAR SALES ‘COULD DRIVE UK BACK INTO GROWTH IN Q3’
A sharp rise in car sales could drive the UK back into growth for the third quarter of 2009. The comments from analysts came after vehicle sales figures for September enjoyed their best month of the year as the scrappage scheme caused an 11.4 per cent rise. The figures, released Tuesday, provided compelling evidence that the Government’s scheme has pulled the market back from the brink.
GLOBAL MARKETS RALLY IS ‘TOO FAST’
The recent rally in global stock markets has been “too much, too fast”, a trio of respected economists has warned, with a sharp correction later this year predicted. Professor Nouriel Roubini, fund manager George Soros and master technician Robert Prechter have all cautioned on the state of the recovery in the global economy
WALL STREET JOURNAL
FANNIE AND FREDDIE PLAN BANK AID
Fannie Mae and Freddie Mac are preparing to introduce a programme aimed at helping independent mortgage banks acquire the short-term credit they need to make home loans, according to sources. The two government-backed mortgage companies, the main providers of funding for US home loans, plan to provide advance commitments to purchase home mortgages that meet certain quality standards.
AT&T IN INTERNET PHONE APP SHIFT
AT&T reversed course yesterday and said that it will allow Internet phone software applications on the iPhone to run on its 3G network. AT&T had previously prevented iPhone Internet phone apps from using it wireless network although subscribers could use the software to make calls over Internet hot-spots and wi-fi networks.