Wednesday newspaper round-up: Deflation, HSBC, GSK

A sustained period of deflation in the Eurozone could derail Britain's recovery, a group of leading economists has warned. Almost half of the economists surveyed by the Centre for Macroeconomics, a joint study between the Bank of England, the National Institute of Economic and Social Research and three of the country's top universities, said that there was a significant risk of a sustained period of deflation across the Eurozone in the next two years. - The Times HSBC is in last-minute talks with shareholders to reach a deal over its Chairman's pay and head off a damaging revolt at next week's annual general meeting. The bank is poised to stage a partial climb-down over plans to pay Douglas Flint a bonus in shares of up to £2.25m. HSBC has said his extra workload on regulatory reform justifies putting him in line for the pay-out this year. - The GuardianChinese police have accused a British executive in drugs maker GlaxoSmithKline's China unit of ordering his sales people to bribe doctors and hospital officials to use the company's products. Wednesday's announcement marks the first time a foreign employee in China of British-based GSK has been accused in connection with the bribery allegations against the company. - The Guardian A senior trader arrested more than four years ago as Britain's biggest insider dealing investigation burst into the open has been cleared. Clive Roberts, the former head of equities at Exane BNP Paribas, was informed by the Financial Conduct Authority yesterday that the regulator would take no action against him. - The Times Essar Energy, the FTSE 250 India-focused oil refiner, will be de-listed from the London Stock Exchange after its independent committee "reluctantly" backed a controversial hostile offer from the company's biggest shareholder. The company's fate comes despite widespread anger from heavyweight City institutions including Standard Life who argued the £900m take-private plan smacked of "cynical opportunism." - The Daily TelegraphThe Chief Executive of Paddy Power is to step down after almost a decade in charge, forcing the bookmaker to start searching for a new boss just as regulatory pressure from the Government grows. Patrick Kennedy will leave Paddy Power next April, declaring that "change is good" after 10 years as Chief Executive. - The Daily Telegraph AB