London Newspaper Watcher Alert

Monday newspaper round-up: Betfair, UBS, Recession

Betfair has called in Credit Suisse to advise on a potential deal boom in the gambling sector. Experts predict that the US ban on online gambling could be lifted in as little as a year by the Democrat-controlled Congress with the backing of President Barack Obama, who is a keen poker player, says the Independent.

Governments around the world are still sitting on multi-billion dollar losses from their direct shareholdings in banks, in spite of a strong rebound in equity markets in recent months. In contrast to Switzerland, which sold its 9 per cent UBS stake for a SFr1.2bn ($1.1bn) gain last week, the world’s other large economies – except the US – are sitting on combined losses of $10.8bn relating to their holdings in the equity of listed banks they bailed out over the past 12 months, writes the FT.

Britain is set to move out of recession and record growth in GDP of 0.5 per cent in the current quarter, the Institute of Chartered Accounts in England & Wales will say this morning, reports the Independent.

Up to five UK building societies could be pushed into mergers over the next couple of years, predicts KPMG, the professional services firm. Simon Walker, partner at KPMG Financial Services,said: ‘More consolidation is inevitable,’ according to the FT.

Jean-Claude Trichet, president of the European Central Bank, has rounded on his US critics over charges that he has been too cautious in the way he has handled the economic and financial crisis in the eurozone, says the Telegraph.