Friday newspaper round-up: US economy, Inequality, Smith & Nephew

30th May 2014 07:26

The US economy contracted sharply in the first quarter and bond yields have been falling at the fastest rate since the recession scare two years ago, in signs that bond tapering by the Federal Reserve is biting more than anticipated. The slowdown comes as a key indicator of the US money supply flashes slowdown warnings, though the picture remains murky after extreme weather conditions over the winter. - The Daily Telegraph The row over Thomas Piketty's bestselling book Capital in the 21st Century has taken a new twist after the journalist who said he had uncovered mistakes in the French economist's work was accused of making "serious errors" of his own. Analysis by the economic consultant Howard Reed published on the Guardian's datablog supported Piketty's view that inequality of wealth has been rising in recent years and dismissed the attack on some of the book's findings by the Financial Times journalist Chris Giles. - The GuardianTwo of Britain's best-known FTSE 100 companies were firmly in the bid spotlight last night after Smith & Nephew and InterContinental Hotels Group replaced AstraZeneca as the blue-chip index's likeliest takeover candidates. S&N, Europe's largest maker of knee and hip joints, appeared to be "in play" for a takeover after Stryker, an American rival sitting on $4bn of cash, admitted it had considered making a bid for the group. - The TimesThe US is seeking more than $10bn from French bank BNP Paribas to settle charges it violated US sanctions on Iran, Sudan and Cuba, according to reports. BNP is locked in talks with the Justice Department, but the lender wants to pay less than $8bn, the Wall Street Journal claimed. Both numbers are far higher than earlier reports of less than $4bn, and would smash the $1.9bn fine HSBC was hit with in 2012 for routinely handling money transfers for countries under sanctions and for Mexican drug traffickers. - The Daily TelegraphSir Philip Green is to return to the stock market for the first time in more than a quarter of a century after an Australian online retailer confirmed its intention to float. The retail tycoon has paid £48m for a 25% stake in MySale, a flash sale website selling fashion, beauty and toys for thousands of brands, in one of his biggest deals since buying Arcadia Group in 2002. MySale, which bills itself as the leading flash sale business in Asia Pacific, plans to raise £40m through selling new shares on the Alternative Investment Market in mid-June. - The Times Corporate lending by Britain's biggest banks collapsed this year, dealing a crushing blow to policymakers' recent efforts to improve the supply of credit for businesses. Loans made through the Bank of England's Funding for Lending Scheme fell by £2.7bn in the three months to April, sparking widespread disappointment. - The TimesAB