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Tuesday newspaper round-up: Fed, Brexit battle, car finance, Lloyds

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Tuesday newspaper round-up: Fed, Brexit battle, car finance, Lloyds

Tue, 02 May 2017
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Tuesday newspaper round-up: Fed, Brexit battle, car finance, Lloyds

(ShareCast News) - The chances of the US Federal Reserve raising interest rates this week were put at less than 5 per cent yesterday after a key measure of inflation fell for the first time in more than 15 years. The core personal consumption expenditures price index fell by 0.1 per cent in March compared with the previous month. The annualised rate of 1.6 per cent fell short of the Fed's 2 per cent target. - The Times
The EU has been plotting for weeks to thwart Theresa May's plans to secure a deal for British expats in Europe and migrants in the UK. Jean-Claude Juncker, the European Commission president, is reported to have been "astonished" by Mrs May's demand that an agreement be reached by the end of next month. - Daily Telegraph

Theresa May faced criticism last night for her handling of Brexit talks after a damaging account of her recent dinner with the president of the European Commission was leaked. She was accused of "megaphone diplomacy" and a complacent approach over her allegedly fractious exchanges with Jean-Claude Juncker. - The Times

Britain's £40 billion car finance market could be heading towards a mis-selling scandal because of concerns about the reliance on debt to buy vehicles. Nearly 90 per cent of new cars are sold using personal contract plans (PCP) finance deals, most of which mean the owner in effect leases a vehicle for three or four years rather than buys it outright. - The Times

Greece has reached a preliminary deal with its creditors that should pave the way for long-awaited debt relief talks, the Greek finance minister said on Tuesday. "The negotiations are concluded," Euclid Tsakalotos told reporters, according to state agency ANA. - Guardian

Lloyds Banking Group has shrugged off concerns that its practice of booking revenue upfront from customers who have interest-free periods on their credit cards is a "ticking time bomb". The state-back lender is about to become the biggest player in Britain's £146-billion-a-year credit card industry after agreeing to buy MBNA from Bank of America. - The Times

The government is resisting calls to intervene and protect the stability of Britain's gas supply, despite warnings that the country's main gas storage site is likely to close. Industrial groups are lobbying the business department to support new gas storage facilities, amid fears that the demise of Centrica's Rough facility in the North Sea will expose them to damaging winter price rises. - The Times

Parents are predicted to lend more than £6.5bn this year to help their children get on the property ladder as first-time buyers continue to struggle to afford homes. This is a 30% increase on the £5bn loaned in 2016, according to research from Legal & General and economics consultancy Cebr, and means parents will be involved in more than 25% of UK property transactions. - Guardian

The organisation at the heart of the government's plans to boost pension saving among low-paid workers has been accused of receiving an unfair subsidy that risks putting rival providers out of business. The National Employment Savings Trust, which was set up to facilitate auto-enrolment as part of workplace pension reforms, benefits from a cheap loan scheme from the Department for Work and Pensions. - The Times

Easier access to mortgages with a small deposit has offered some glimmers of hope for first-time buyers struggling to get on to Britain's housing ladder, according to a new report. Research on the amount of time it takes to save for a down payment on a home suggests buyers have been helped by the greater availability of mortgage loans at higher loan-to-value (LTV) ratios. - Guardian

A British company at the heart of the efforts to make large aircraft more fuel-efficient and less environmentally damaging is set to float on the junior market of the London Stock Exchange. Velocity Composites, based in Burnley, Lancashire, at the core of northwest England's aerospace manufacturing cluster, will join the Alternative Investment Market with plans to expand overseas. - The Times

Apple's cash pile has swelled to over $250bn (£194bn), a sum greater than the combined foreign reserves of the British government and Bank of England. The technology giant will reveal on Tuesday that its reserves have been boosted once again after making a quarterly profit of over $10bn. - Telegraph

Twitter's shares rose more than 6pc on Monday after a report that the company is partnering with Bloomberg for streaming news, marking the stock's third straight day of gains following strong results last week. Twitter and Bloomberg Media will create a service that will stream news produced solely for Twitter, the Wall Street Journal reported.

US auto giant General Motors is poised to become the first manufacturer to make a profit from electric vehicles, a GM executive predicted on Monday. The company leads the pack in reducing the cost of electric vehicles and ultimately offering an affordable version, said Mark Reuss, GM's executive vice president for product development. - Telegraph

The British entertainment industry has joined forces with its counterparts across Europe to attack moves in Brussels it claims will "severely erode" the "absolute cornerstone" of the film and television businesses. More than two dozen UK organisations, including the British Film Institute, Odeon Cinemas, Sky and the Premier League, have lined up against the European Commission's planned copyright overhaul. - Telegraph

21st Century Fox is in talks with private equity giant Blackstone to buy Tribune Media, one of America's largest television station operators, sources familiar with the matter have said. Blackstone would provide the cash while the Rupert Murdoch-controlled Fox, which owns Fox News Channel and other assets, would provide the TV stations for the joint venture, according to one of the sources. - Guardian


Ministers have been urged to tighten the rules around pre-pack administrations after figures showed that a voluntary system for preventing abuses was largely being ignored. Only 28 per cent of eligible cases were referred to the Pre Pack Pool in its first 14 months, according to its inaugural annual report. - The Times

Companies in Britain's growing gig economy are forcing workers into bogus self-employment and free-riding on the welfare state, an influential committee of MPs has said. In a damning assessment of modern employment practices, the parliamentary work and pensions committee calls on the next government to bring laws up to date so that workers are better protected from exploitation. - Guardian

NASDAQ 100 Top Risers

Name Last Chg.% Time
Amazon.Com Inc. 1,038.95 1.29 23:05
Apple Inc. 152.09 1.21 23:06
Autodesk Inc. 110.81 0.97 22:48
Activision Blizzard Inc. 61.44 0.84 22:21
Alphabet Inc. Class C 980.34 0.76 23:09

NASDAQ 100 Top Fallers

Name Last Chg.% Time
American Airlines Group 51.28 -1.21 23:04
Automatic Data Processing Inc. 103.54 -0.99 22:07
Alexion Pharmaceuticals Inc. 130.74 -0.80 22:07
Analog Devices Inc. 78.75 -0.27 23:06
Applied Materials Inc. 46.78 -0.06 23:05