MONDAY
The Governor of the Bank of England cautions that rising interest rates worldwide could destabilise financial markets and the global economy, saying that “the way ahead may not be smooth”. It emerges that the Glazer family, owners of Manchester United FC, are considering plans to ease the club’s interest bills by refinancing the £540 million of debt taken on when they bought the club last year. A trade row threatens to erupt between China and the United States as new data show that booming exports propelled China’s trade surplus with the rest of the world to another record last month. Sir Anthony O’Reilly, the Irish billionaire, has to stump up more cash for Waterford Wedgwood, the loss-making crystal and china maker of which he is chairman, after agreeing to underwrite a fourth critical fundraising.
TUESDAY
Leading shares worldwide continue to slump as financial markets remain gripped by fears over inflation and higher global interest rates. Oil and copper prices tumble as interest-rate worries take the heat out of commodity markets. New data show that headline inflation is back above the Bank of England’s target for the first time in three months, as soaring bills for gas and electricity, a further rise in the price of petrol at the pumps and dearer food take their toll. It appears that ITV’s flagship channel is heading for a dismal August, as media buyers say that the broadcaster’s advertising bookings are down 17 per cent. Goldman Sachs, the Wall Street investment bank, shrugs off stock market turbulence to report the second-best quarter in its history, helped by record trading earnings.
WEDNESDAY
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The credibility of Airbus, Europe’s biggest aircraft maker, is in tatters as investors wipe €5 billion (£3.4 billion) off the value of EADS, its parent, after hearing that deliveries of its flagship A380 would be delayed. Vodafone shareholders are angry as it emerges that the company plans a £1 million payoff to a mentor of the chief executive. The mentor has not been fully employed by the mobile giant for five years. A consortium led by 3i, the FTSE 100 private equity house, is considering plans to scupper an agreed £2.5 billion takeover of Associated British Ports by the Admiral consortium, led by Borealis Infrastructure Management. Vincent Bolloré, the French financier who has a 29.1 per cent stake in Aegis, hints that he might take a stake in Emap in the future.
THURSDAY
Bill Gates, chairman and co-founder of Microsoft, is to step down from the day-to-day running of the software giant to focus on his charitable foundation. He will continue as chairman after transferring his duties over two years. The 3i consortium bidding for Associated British Ports insists that it will outbid a rival suitor, which has raised its cash offer for Britain’s biggest ports owner to £2.53 billion. Noël Forgeard, joint head of EADS, fights for his job after revelations that he sold shares worth millions of euros months before the announcement of project delays that this week prompted a share-price crash. Standard Life, Europe’s biggest mutual insurer, comes under bid speculation after the grey market for its shares is set at the bottom of the reduced range announced by the company.