Monday newspaper round-up: Mark Carney, Petroleum reserves, AstraZeneca

19th May 2014 07:25

The government's Help to Buy scheme could distort the entire mortgage market and may have to be curbed, the Governor of the Bank of England warned yesterday. Mark Carney said that the programme to help new home owners to secure a mortgage with a deposit of as little as 5 per cent may be encouraging a return to risky home loans. The remarks represent the most explicit sign that the Bank of England may formally request a policy change in September. - The Times China is stockpiling oil for its strategic petroleum reserve at a record pace, intervening on a scale large enough to send a powerful pulse through the world crude market. The move comes as tensions mount in the South China Sea, and the West prepares possible oil sanctions against Russia over the crisis in Eastern Ukraine. Analysts believe China is quietly building up buffers against a possible spike in oil prices or disruptions in supply. - The Daily TelegraphPfizer tabled a "final" £55-a-share offer for AstraZeneca last night, but warned that it would walk away from the mooted £69bn takeover if its British rival refused to engage. The American drugs giant urged AstraZeneca's shareholders to put pressure on the board to engage as it raised the level of its offer and increased the cash element from 33% to 45%. - The Times Britain's biggest chemist, Alliance Boots, could be wholly owned by America's largest drug-store chain within eight months. The Walgreen Company currently holds a 45% stake and has an option to buy the remaining 55% between February and August next year. But, according to reports, Walgreens is hoping to swoop sooner in a takeover valuing Boots at around £10.5bn. - The Daily Telegraph GlencoreXstrata will face a fresh grilling over its business deals in the Congo with Israeli businessman Dan Gertler at its annual meeting tomorrow. The Swiss commodities giant is also due to face criticism over its accounting standards, but is reportedly closing in on hiring a female non-executive to end criticism over its position as the last FTSE 100 firm with an all-male board. Campaigners at Global Witness will highlight a series of transactions they claim left Gertler, the 'gatekeeper' to much of Congo's mineral wealth, $67m richer with no clear benefit to Glencore. - Daily Mail Public support for fracking for shale gas in the UK has fallen below 50% for the first time, new polling suggests. Just 49.7% of people now say they think the controversial process should be allowed in the UK, marking the third fall in support since high-profile protests last summer in West Sussex which saw dozens of arrests including that of Green MP, Caroline Lucas and ongoing protests at a site in Salford. - The GuardianBT is hiring 1,600 engineers amid criticism from regulators over the speed at which new internet connections are installed and faults are repaired. The telecoms company, whose network is also relied on by dozens of other broadband providers including Sky and TalkTalk, has been rapped by watchdogs for leaving customers stranded without web access for too long. - The GuardianAB