WHAT THE OTHER PAPERS SAY THIS MORNING
FINANCIAL TIMES
GALLEONMOVINGASSETS INTO CASH
Brokers to the Galleon Group – the hedge fund whose founder and president, Raj Rajaratnam, is at the centre of insider trading charges – report it is rapidly liquidating its investments in anticipation of a wave of investor redemptions.
$12.9BN VALEPUSHTOENDDISPUTE
Vale, the Brazilian mining group that is the world’s biggest producer of iron ore, is to invest $12.9bn (£7.9bn) during 2010 in what is being seen as an attempt to end a simmering disagreement with the government over its investment strategy. But the plan, announced late on Monday after a meeting between Luiz Inácio Lula da Silva, Brazil’s president, and Vale’s controlling shareholders and senior management, falls short of the heavy investments in steelmaking the government has demanded recently.
PRUDENTIAL CONSIDERS SEPARATEASIALISTING
Prudential, the UK insurer, is considering a separate listing in Hong Kong or Shanghai in a move that could raise capital and underline its regional ambitions. The company, which saw strong demand for a $750m (£450m) hybrid capital raising in Asia this year, is conducting a preliminary assessment of the likely benefits of listing on either bourse, according to people familiar with the matter.
HARMAN VOWSTOEND MEN-ONLY BOARDS
Harriet Harman pledged on Tuesday to act to end the “nightmare” of male-only City boards, to force employers to undertake gender pay audits and to use the award of government contracts as a “major lever” to tackle sex discrimination in the Square Mile.
However, experts said the government was engaged in a “race against time” to impose legal requirements before the spring general election.
THE TIMES
TORIES SEEOFGEMAS TARGETFORCUTS
The Conservative Party is drawing up plans for drastic job cuts at Ofgem, the energy regulator, as part of a sweeping overhaul of British energy policy, The Times has learnt. Senior Tories said the party was working on an energy policy document including a proposal to strip Ofgem of its strategic powers on energy security. The document will set out plans for many of Ofgem’s existing powers to be reclaimed by the Department of Energy and Climate Change (DECC).
SHAREHOLDERS FACEWIPEOUTAFTERREGENTINNSGOESINTOPRE-PACK
Regent Inns, the Walkabout bar and Jongleurs comedy club operator, is to undergo a pre-pack administration that will wipe out ordinary shareholders and precipitate the closure of nine of its worst-performing sites.
The Daily Telegraph
“UNSUSTAINABLE” BUY-TO_LET MARKET “MUSTBEREGULATED”
Buy-to-let mortgages should be brought with the Financial Services Authority’s remit, the regulator said.
It called the buy-to-let market “unsustainable” and said the high incidence of mortgage fraud and arrears showed the need for the sector to be brought within the scope of FSA regulation.
EUROAT $1.50 IS “DISASTER” FOREUROPE
France has given its clearest indication to date that the surging euro is a threat to Europe’s fragile recovery. “The euro at $1.50 is a disaster for the European economy and industry,” said Henri Guaino, right-hand man of President Nicolas Sarkozy. The currency has risen 15pc in trade-weighted terms since March, equivalent to six quarter of a percentage-point rises in interest rates.
WALL STREET JOURNAL
SUN MICROSYSTEMS TO CUT 3,000 JOBS
Sun Microsystems Inc. said it plans to lay off about 3,000 employees, or about 10% of its work force, because of delays in the closing of its purchase by Oracle Corp. The hardware and software maker has been reducing its work force over the years because of declining revenues, and additional job cuts have been widely expected to happen after Oracle buys the company.
USTOBOOSTSMALL BUSINESS LENDING
President Barack Obama is expected to announce a series of initiatives Wednesday aimed at boosting credit to small businesses, an administration official said, as the White House tries to address a complicated issue many think is dragging on the economy.