Tuesday newspaper round-up: Barclays, China, Budget

18th Mar 2014 07:20

Criticism of Barclays and other investment banks risks leaving both Britain and Continental Europe dependent on their US peers, Robert Talbut, Chief Investment officer at Royal London Asset Management and Chairman of the Association of British Insurers' investment committee has said. In what amounts to a cautious defence of Barclays, Talbut argued that a 10 per cent increase in bonuses, while disappointing, did indeed make sense, The Times reports. Credit curbs in China threaten the largest property default ever in the country, possibly breaking the housing boom and leaving a string of ghost towns across the country in their wake. The company in question, according to Chinese newspaper Economic Daily News, is XinGrun properties, near the coastal city of Ningbo. It owes banks $570m. Local authorities have set up a working group to contain the fallout, The Daily Telegraph says.Lawyers from both sides have held 'back-channel' talks ahead of a court hearing of the class action lawsuit brought against RBS and former directors by disgruntled investors in its 2008 rights issue. The agreement would see the lender hand out £4bn in shares. That, however, does not mean that the lender is about to admit any culpability. Rather, it is a contingency plan should it decide to settle. For its part, the Royal Bank of Scotland Shareholders Action Group, which represents the largest of several groups participating in the lawsuit, has said it is keen to have its day in court, even if it did receive an offer, according to The Daily Mail.In the debate ahead of the Budget Labour leader Ed Miliband argues that the failure to solve the increasing inequality means the recovery will only favour the "privileged few" and is therefore prone to flounder. Yes, the recovery means that living standards will improve this year, but they will do so by the most for the rich, he wrote in The Guardian. The Bank of England may today announce a management shake-up, the largest in years. Thus, the Chancellor is thought to be preparing to name a successor for Charlie Bean, the monetary authority's Deputy Governor, before this evening's speech from Governor Carney at the annual Mais lecture, The Times says. HBM Sayers, the Scottish litigation firm, yesterday unveiled a merger with Berrymans Lace Mawer. The transaction will create BLM, a £100m business focused Britain and Ireland. It will have 1,550 employees, including 170 partners and 630 lawyers working out of 12 offices, The Scotsman reports. AB