Tuesday newspaper round-up: Germany, Schroders, Goldman Sachs

German bond yields are to fall below Japanese levels and plumb depths never seen before in history as Europe becomes the epicentre of global deflationary forces, according to new forecast from the Royal Bank of Scotland. “We are seeing `Japanification’ setting in across Europe,” said Andrew Roberts, the bank’s credit strategist. “We expect 10-year Bund yields to cross the 10-year Japanese government bond and we are amply positioned for such an outcome.” - The Daily Telegraph

Schroders faces a potential conflict of interest in the wake of Aviva’s surprise £5.4bn approach to buy Friends Life. The blue-chip fund manager is the second-largest shareholder in Friends Life, with a stake of more than 9% that is worth about £480m based on yesterday’s share price. However, Schroders is also one of several fund managers that run money for the insurer, which contracts out the management of the lion’s share of its £10bn of assets. - The Times

A high court judge has ordered Goldman Sachs to reveal how much profit it made on a deal that lost Libya’s government more than $1bn when financial bets turned sour. The Libyan Investment Authority, created in 2006 to look after the country’s oil riches, accused the Wall Street bank of duping it into making investments that its “naive” staff didn’t understand. - The Guardian

One of the City’s most influential shareholder groups has issued a warning about a £25m pay deal for the new boss of BG Group. The Investment Management Association issued its “red top” alert – its most serious warning signal about corporate governance breaches – as Legal & General, the biggest investor in the UK stock market, also revealed it was concerned about the £25m pay deal for Helge Lund, which is being put to a shareholder vote next month.- The Guardian

A dip in confidence across the services sector will limit growth heading into the new year, according to a wide ranging business survey. High demand going into the pre-Christmas period for leisure, hotels and professional services was unable to maintain the buoyant confidence levels seen earlier in the year, the CBI said in its quarterly report on the sector. A price freeze will also dent the profitability of business and professional services as intense competition limits inflationary pressures, it added. - The Guardian

Focusrite, which will join the market early next month with a value of about £80m, is based in High Wycombe. Fronted by Led Zeppelin's first ever dedicated live soundman Phil Dudderidge, it supplies music and audio products around the globe under its Focusrite and Novation brands. It helps professional musicians such as Beyonce, Sting, Madonna and Muse record their tunes in a studio or play live in packed arenas. The firm also aids the surging number of amateur musicians who record and distribute their own tunes on iTunes, Spotify or YouTube. - The Daily Express