Monday newspaper round-up: Home prices, Iranian oil, Punch Taverns

14th Apr 2014 07:07

Asking prices for homes in the UK have risen by 7.3 per cent over the past 12 months, according to Rightmove and can be expected to rise by an additional 7.4 per cent this year, a new report from the E&Y ITEM Club says. However, the pace of increases is expected to taper to 7.2 per cent next year before retreating to a 4.2 per cent clip in 2016. An increase in the supply of new homes, greater caution from mortgage lenders and tougher regulations from the Bank of England will all help to avoid an unsustainable boom, the think tank added, according to The Times. Iran has unveiled plans to double its oil production by the end of the decade and, ignoring sanctions, pump billions of dollars of its currency reserves into developing its share of the world's largest natural gas reservoir in the Persian Gulf - the South Pars field. The total cost of these new projects is expected to reach up to £8.3bn. However, it is thought unlikely that Iran will be able meet its targets without help from international oil companies, The Daily Telegraph reports. Troubled pub operator Punch Taverns, Britain's second biggest pubs group, has brought in an independent corporate restructuring expert to aid in the long-running negotiations over its £2.3bn pile of debt. It is hoped that a deal between the company and its creditors can be reached by the start of May. A deal, which may include a debt for equity swap, between Punch and its junior creditors could soon be agreed. In parallel, negotiations with senior bondholders are continuing. However, to avoid a default fresh restructuring proposals must be reached by June 30th, The Daily Telegraph says. Commodities giant GlencoreXstrata has announced its intention to sell its Las Bambas copper mine to a Chinese consortium for more than $6.25bn. The sale was imposed by China's commerce ministry as a condition for approving Xstrata's takeover by Glencore. The transaction also marks China's largest purchase overseas in six years, according to The Times.Scotland's economic recovery is now on a solid footing, the latest Bank of Scotland purchasing managers index showed. The survey, which canvasses hundreds of businesses, showed that improved conditions had led companies to increase staffing levels, even if the pace moderated from February's' peak. Better conditions were seen in both manufacturing and services, but exports continued to be a weak spot, The Scotsman reports. The Co-operative Bank is preparing to raise £400m even without any input from the Co-op Group given that there is "more than enough interest" from other investors, sources close to the deal told The Daily Mail. The Co-op Group, which holds a 30% stake in the bank, is set to reveal massive losses when it publishes it full-year figures, on Thursday. In no mean part, that will be due to the £1.3bn in red ink racked up at the Co-op Bank. The company had previously stated that it would honour its obligations to contribute £263m to last year's capital raising effort at the lender. On top of that, nonetheless, it may now be called upon to put up a further £120m. AB