The Independent on Sunday: Fed to taper QE as US picks up
The US Federal reserve is poised to mark a turning point for the world’s biggest economy this week as it is expected to announce a slowdown in its $85bn a month quantitative easing programme. The controversial money-printing scheme has been seen as a key component of recent US economic growth but it is now believed that outgoing Fed chief Ben Bernanke will be urging colleagues at the central bank to order the gradual reduction of the programme, as economic growth figures continue to improve.
The Sunday Times: Co-op rebels challenge bank losses
The Co-operative bank has been accused of exaggerating its losses in an attempt to panic creditors into accepting a rescue deal. The claim is being made by bondholders who could suffer massive losses on their Co-op debt if the rescue deal goes through. However, the company are adamant that the financial position they have given to creditors is true and accurate, with chief executive Euan Sutherland warning that “there is no plan B” for saving the mutual giant.
The Mail on Sunday: Diageo investors target £18.2m ex-boss
An investor revolt is brewing this week over the £18.2m pay package for Paul Walsh, the former chief executive of the drinks giant. Shareholder advisory firm Manifest has accused the firm of awarding its executives ‘excessive pay’. On Thursday the board of Diageo will be in the firing line as the company holds its annual meeting, at which investors will get to vote on executive pay – including Mr Walsh’s controversial payout. Manifest said it expected some investors to vote against the remuneration package.
The Sunday Telegraph: Legal fight threatens Royal Mail
TNT is set to challenge the 20 per cent VAT exemption given to the Royal Mail as “universal provider” of British postal services. A Nov-ember date has been set for the High Court hearing which will see TNT argue that the VAT exemption given to the Royal Mail is against European rules. If TNT succed, it could impose substantial new costs on the business, making the planned flotation far less attractive to UK investors.