PRESS DIGEST - Financial Times - July 10

The Financial Times

MARKETS CONFUSED BY BANK'S GILTS MOVE

Following the monthly meeting of its monetary policy committee, the Bank of England's announcement that it would suspend its 125 billion asset purchase programme created confusion in the gilts market. The Banks' surprise announcement without any clue to its future intentions has, according to Robert Barrie at Credit Suisse, left the markets to second guess it and strengthened the belief that the MPC "continues to make the straightforward more complicated than it need be". Sterling closed the day 1.1 percent up on the dollar and recorded gains against the euro and the yen.

BIG NAMES IN UK DIGITAL MEDIA STEP UP TO FUND NET START-UPS

Four of the UK's biggest names in digital media are joining forces to launch an investment fund for Internet start-ups. Michael Birch, co-founder of Bebo, will be the cornerstone investor in PROfounders Capital. He will be accompanied by Brent Hoberman, co-founder of Lastminute.com; Peter Dubins, founder of Pipex; and Jonathan Goodwin, who sold the boutique investment bank LongAcre to Jefferies in 2007. The fund will not take institutional money, but will instead replicate the Silicon Valley model of experienced entrepreneurs investing in start-ups. PROfounders will invest in "digital disruptive" businesses, such as digital health and education.

BULLISH ANGLO PICKS NEW CHAIRMAN

Sir John Parker is set to be named as new chairman of Anglo American (AAL.L). The announcement aims to reassure shareholders that the mining group has a strong future after it rejected a merger offer from Xstrata (XTA.L). Anglo American's performance during the recent commodities boom has been viewed as disappointing and its chief executive Cynthia Carroll has been criticised by both shareholders and former employees despite restructuring the group. Earlier this year it announced losses at its platinum division and suspended its dividend.

LLOYD'S PLANS STRATEGIC REVAMP

Lloyd's of London has embarked on its biggest strategic review in a decade in an effort to ensure that the insurance market takes advantage of gaps in the market made evident by the financial crisis. The group has enlisted consultants Deloitte to assist in the review, which it hopes will result in a new strategic plan in January. Chief executive Richard Ward said the review would go beyond the annual update of Lloyd's rolling three-year plan, adding: "We find ourselves in a position of strength and in an environment where the subscription model (which spreads risks among many counterparties) has become more attractive."