InvestmentsMay 24 2013

Morning papers: HSBC’s US settlement could be rejected

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HSBC’s $1.9bn (£1.3bn) settlement deal with US authorities over money laundering charges could be rejected, it was reported on Thursday night, reports the Daily Telegraph.

Judge John Gleeson is considering cancelling December’s so-called deferred prosecution agreement that gave HSBC immunity from claims it allowed terrorists to move at least $881m (£584m) around the financial system. This could leave the bank open to criminal prosecution and a ban from operating in America. However, HSBC disputes this.

EU rushes out corporate tax transparency law

Big companies’ tax affairs in Europe are to be opened up to greater public scrutiny with the EU rushing out a law compelling them to reveal corporate profits and taxes on a country-by-country basis, reports the Financial Times.

Amid a political furore over allegations of tax avoidance by corporate-giants such as Apple, Starbucks and Google, the EU is extending transparency reforms for banks and resources groups to all large public and private companies.

Obama resets war on terror

President Barack Obama said Thursday the US war against terror must seek new tactics and far-reaching revisions in the legal and moral framework that has guided policies since 2001, reports the Wall Street Journal.

While the US must continue efforts to dismantle terrorist organisations and protect Americans against attack, “This war, like all wars, must end,” the president said at the National Defense University. “That’s what history advises. That’s what our democracy demands.”

Bank of England MPC member warns UK faces years of weak growth

Fears that Britain faces years more weak growth were raised by a leading Bank of England policymaker when he warned that adjustment to the tougher post-crisis climate was only two-thirds to three-quarters complete, reports the Guardian.

Speaking in Cardiff on Friday, Paul Fisher said there had been nothing to compare with the recent sluggish performance of the economy since modern quarterly growth data was first produced in 1955.

P&G chief ousted after investor unrest

The boss of Procter & Gamble was ousted last night after a long-running battle with activist investors, reports The Times.

Bob McDonald will be replaced as chairman and chief executive of the world’s largest household products maker by his predecessor, Alan George “AG” Lafley.