Wednesday newspaper round-up: Goldman Sachs, emerging market flight, Wren fund

Goldman Sachs will be able to ask the Bank of England for funding in a crisis after the American firm won approval to access the UK central bank’s liquidity scheme as an emergency back-stop. It means that the Wall Street investment bank could receive temporary financial assistance from the British authorities as well as America’s central bank, the Federal Reserve. Goldman is the first foreign-owned bank that is known to have won approval to access the Bank’s Sterling Monetary Framework. - The Times

The flood of capital gushing out of emerging markets has risen towards $1trn over the past 13 months, roughly double the amount that left during the financial crisis, amid slumping confidence in developing economies. The sustained exodus reinforces concerns that emerging market economies, suffering slowing growth and weakening currencies, are relinquishing their longstanding role as engines for global growth to become a drag on demand. - The Financial Times

One of the world’s biggest sovereign wealth funds is part of a consortium that is plotting a bid for London City Airport, which has been valued at £2bn. Wren House Infrastructure Management, an investment vehicle owned by the Kuwait Investment Authority (KIA), has teamed up with Ontario Teachers’ Pension Plan (OTPP), the Canadian giant investment fund, and investment firm Hermes to make an offer for the airport, according to sources. - The Daily Telegraph

The number of British job vacancies rose slightly in July but labour market conditions were likely to remain subdued, the latest Department of Employment report has said. The number of job vacancies posted on the internet was 152,600, its latest report said – or 49.8% below the March 2008 peak. “This suggests that labour market conditions are likely to remain relatively subdued, at least in the near term,” the report, released on Wednesday, said. - The Guardian

Hillary Clinton has broken ranks with President Barack Obama on the environment for the first time in the 2016 election campaign, saying the Arctic should not be exploited for offshore oil the day after the Obama administration gave Royal Dutch Shell a drilling permit. The Arctic state of Alaska is a battleground in the US debate over energy development and environmental protection and Mrs Clinton on Tuesday staked out a position to the left of the president by tweeting that drilling there was too dangerous to risk. - The Financial Times

US airlines are producing their biggest profits ever. But instead of clear skies, they are encountering problems that their recent prosperity, in some cases, is making worse. Employees at Southwest Airlines and Delta Air Lines have rejected labor contracts in recent weeks, with some arguing that the compensation wasn’t sufficient given the industry’s financial performance. Federal regulators have started two separate probes into whether the biggest airlines have violated competition rules. And shareholders, fretting that the airlines’ success will stall, have beaten down stock prices. - The Wall Street Journal

Asda shocked the grocery trade yesterday by reporting its worst sales performance since it was taken over by Walmart 16 years ago, with discounters continuing to poach its customers. Like-for-like sales fell by 4.7% in the second quarter after a 3.9% slide in the first quarter. - The Times

The pound jumped to a seven-year high yesterday after new figures showed core inflation rising at a much faster pace than predicted. Consumer prices inflation grew unexpectedly by 0.1% in the year to July, up from zero in the 12 months to June, according to the Office for National Statistics. This is slightly higher than analysts’ expectations for no change, but it is still nowhere near the Bank of England’s official inflation target of 2%. - The Times

Chinese stock markets tumbled for a second straight day on Wednesday as investors crowded the exits, fearing a government campaign to prop up share prices was faltering and unnerved by a steady stream of gloomy economic news. The Shanghai and Shenzhen markets were down around 3pc in morning trade, taking their losses to more than 8pc since Monday's close, despite a government-directed campaign by brokers, fund managers and regulators to stabilise prices. The markets alter pared back some losses. - The Telegraph

Budget price supermarket gins – some a snip at less than a tenner a bottle – have trounced their more expensive and established rivals in a consumer taste test. The supermarkets’ own-label crisp dry white wines were also rated more highly on taste than popular high street brands. Drinks experts from the consumer group Which? rated 12 standard-range gins and 10 crisp dry white wines from a selection of supermarket own-label products and popular brands. - The Guardian

The doubling of student debt since the recession, to $1.19 trillion, has stoked a national discussion over how to rein in college costs and debt and is becoming a major issue in the 2016 presidential race. Little noted in the outcry is the disproportionate role played by postgraduate borrowers, who now account for roughly 40% of all student debt but represent just 14% of students in higher education. - The Wall Street Journal