Friday newspaper round-up: Murdochs, Volcker, BHP Billiton

15th Jul 2011 06:09

Rupert and James Murdoch are to be sued personally for their handling of the phone-hacking debacle, it emerged on Thursday night as the family's woes intensified on both sides of the Atlantic. They will have to answer claims personally that they neglected their "fiduciary duty", rather than have News Corp defend the case as a corporate entity, the Telegraph reports.Pressure is growing on James Murdoch to step down as chairman of BSkyB as shareholders call for him to quit in the wake of the collapse of News Corporation's bid. The Co-operative Asset Management, which holds shares in Sky and News Corp, yesterday followed Pirc, the corporate governance adviser, in calling for the appointment of a chairman with no ties to the failed bidder, the Independent reports.Britain's key proposal for banking reform still misses the "overriding question" of how to cope with financial failures, Paul Volcker has warned. The eminent American economist, who is advising President Barack Obama on financial regulation, delivered a withering assessment of Britain's plans to "ring-fence" retail banking operations, according to the Telegraph.BHP Billiton has made another big bet on energy in the US, announcing an agreement to buy Petrohawk, an independent oil and gas company, for $12.1bn in cash. In its biggest acquisition to date, the Anglo-Australian mining group said on Thursday it had agreed to pay $38.75 a share for Petrohawk, which operates in three leading areas of shale gas and oil production in the US, the Financial Times reports.The world economic recovery is under threat because of the twin debt crises afflicting the US and Europe, the International Monetary Fund said. The Washington-based fund warned in a note to G20 ministers that "severe financial sector risks" are looming because of the failure by politicians to get to grips with mountainous government debt burdens on both sides of the Atlantic, the Times says.Thousands who have booked holiday cruises have been left in limbo tonight amid questions over the future of one of the country's leading travel agents. Gill's Cruise Centre has stopped taking new bookings following concerns over mounting debts. The move came after the country's leading cruise operators, Carnival UK, Royal Caribbean, Celebrity Cruises and Azamara Club Cruises, refused to accept new bookings from the firm, the Daily Mail reports.Drilling for oil and gas in the North Sea tumbled in the second quarter to a nine-year low following Chancellor George Osborne's tax raid on companies operating there. Activity fell by 52% year-on year for the three months to June, even though strong oil prices meant there was more drilling in the Norwegian North Sea and it was steady off the Dutch coast, the Daily Express reports