Morning papers: US economy contrasts with eurozone
Manufacturing activity in the US is picking up as its domestic economy recovers, underlining the diverging fates of the world’s biggest economy and the eurozone, reports the Financial Times.
American factory output expanded at an accelerating rate in March, according to the Institute for Supply Management’s purchasing managers’ index. Similar PMI surveys for the eurozone confirmed an earlier estimate that manufacturing activity contracted in the region, with French manufacturing proving exceptionally weak.
Scarred Avon is takeover target
Avon Products, weakened by poor financial results, a long-running investigation into alleged overseas bribery and a lame-duck CEO, found itself in play Monday when a smaller rival offered to buy the door-to-door cosmetics company for $10bn (£6.2bn), according to The Wall Street Journal.
The takeover bid from Coty — the maker of perfumes under fashion-house and celebrity names such as Calvin Klein, Beyoncé and Madonna — was immediately rejected by Avon, which called it uncertain, stingy and opportunistic.
Aberdeen Asset Management looks to replace Katherine Garrett-Cox as boss of £2.1bn Alliance Trust
Aberdeen Asset Management wants to replace Katherine Garrett-Cox as manager of the embattled £2.1bn Alliance Trust in what would be one of the most dramatic City coups in years, reports The Daily Telegraph.
The normally restrained world of investment trusts will be agog at the move, which pitches two of the UK’s most high profile fund management bosses against each other.
UK explorers struggle to strike Falklands oil
Argentina’s latest sabre-rattling over oil exploration in the Falklands is puzzling given the latest financial results from the island’s key prospectors, reports The Guardian.
Desire Petroleum and Borders & Southern Petroleum, two of five London-listed exploration businesses with interests in the archipelago, announced annual pre-tax losses of $42.5m and $1.74m on Monday.
Britain will avoid new recession, BCC claims, as eurozone unemployment hits record 11%
Britain has dodged a double-dip recession but the crisis in the eurozone is deepening with unemployment at a record high, according to the latest figures, reports the Daily Mail.
The UK economy grew by 0.3 per cent in the first three months of the year, having shrunk by the same amount at the end of 2011, the British Chambers of Commerce said.
Dow Jones Industrial Average closes at highest level since 2007
The Dow Jones Industrial Average closed at its highest level since 2007 after America’s manufacturing industry managed to pick up the pace of its expansion last month, reports The Daily Telegraph.
The better-than-expected showing from the country’s manufacturers in March helped strengthen expectations that the wider US economy enjoyed a stronger first quarter.