Friday newspaper round-up: Anglo American appoints Parker as chairman

10th Jul 2009 06:23

Sir John Parker will be named the new chairman of Anglo American today in a move that will further bolster the miner's defence against a merger approach from Xstrata. Sir John is expected to step down from the chairmanship of Mondi, the paper company that was spun out of Anglo two years ago, but will retain the chairmanship of National Grid, says the Times.Boris Johnson, the Mayor of London, said yesterday that European plans to regulate the financial services sector threatened to drive hedge funds out of London and Europe, even though they were "blameless" for the crisis. Speaking at a conference in London he said: "It's utterly crazy that we should allow the EU to launch an attack on the City's alternative investment funds. I believe this EU directive is a mistake and against the interests of Europe," he said, reports the Telegraph.A dramatic shake-up in Allen & Overy led to partners' profits falling by almost 10% last year, Britain's fourth-largest law firm discloses today. In February the London-based firm began one of the biggest restructurings undertaken by a City law firm, shedding about 450 salaried employees and 47 equity partners at a cost of £46m, the Times reports.Merger talks between British Airways and Iberia are expected to gather new momentum after the ousting of the Spanish flag carrier's chairman. Fernando Conte stepped down yesterday and will be replaced by Antonio Vázquez, the former chief executive of Altadis, the tobacco producer, the Times reports.The Bank of England sowed confusion in the gilts markets on Thursday, announcing it would suspend its £125bn asset purchase programme, at least for now, but offering no clue to its future thinking. UK government bonds sold off sharply after the Bank disappointed investors by failing to increase its quantitative easing programme. Gilt yields, which have an inverse relationship with prices, jumped 19 basis points, one of the biggest daily moves of the year, the FT reports.Leading shareholders in Venture Production, the North Sea oil and gas company in which Centrica has a 23.6% stake, have agreed not to sell their stakes too cheaply in the event of a bid for the company. Centrica, which owns British Gas, has been set a deadline of the close of business on Monday to say whether it will make an offer for Venture or be barred from bidding for six months, the FT reports.Beijing detained an executive of a large Chinese steel mill in a widening probe that has already led to espionage allegations against four employees of Rio Tinto, the Anglo-Australian miner. The government also defended its decision to detain the four Rio employees, one of whom is an Australian national, the FT reports.First-time buyers are turning to the "Bank of Mum and Dad" in increasing numbers to get on to the housing ladder. The Council of Mortgage Lenders says that as many as 80% of first-time buyers aged under 30 are receiving help from parents to find a deposit in a market where prices remain historically high in relation to salaries and wary banks and building societies routinely demand deposits of 25%, the Independent reports.Oil and gas drilling operations in the North Sea have more than halved in the past year, while activity in the equivalent sector in Norwegian waters has shot up, figures showed yesterday. The Norwegian energy industry is reaping the rewards of a more generous tax incentive scheme, experts warn. Unless the British government follows its example the consequences could be dire, the Independent reports.