Newspaper Summary
The Times
Markets fall after Trump begins to sever trade ties: A record-breaking surge in global stock markets ran out of steam as America’s new president made good on his promises to cut international trade ties and punish U.S. manufacturers that make goods abroad.
Brexit risks pushing up Hinkley cost, EDF warns: EDF has raised the spectre of delays or cost overruns to its £18 billion Hinkley Point nuclear plant as a result of Brexit, warning that any restrictions to trade and movement of labour could hamper the delivery of energy projects.
Tesco rebuts investors’ scandal claim: Tesco has mounted a robust defence against more than 100 shareholders, which claim that they have suffered millions of pounds of losses after the grocer’s accounting scandal.
May strategy ‘is golden opportunity missed’: A digital network that is a national embarrassment, energy costs and business rates that are hobbling enterprise and expansion and the lack of a plan for manufacturers that need unskilled workers were among the red flags thrown up by business leaders after the publication of Theresa May’s industrial strategy.
Thinking outside the box for Paddington: In the summer of 2012, Irvine Sellar and Renzo Piano stood on the 78th floor of the Shard and quietly toasted the completion of the skyscaper after a 13-year battle to get it built. The project helped to transform the grubby streets around London Bridge Station into a bustling new destination. Now the property developer and the Italian architect plan to do the same for Paddington.
There is no easy cure, says Essentra: The new Chief Executive of Essentra warned that there would be no quick fix to the packaging company’s woes after it issued its fourth profit warning in eight months.
Smith takes axe to crystal ball: Terry Smith has attacked investors and analysts for trying to predict political and economic events. In a spirited defence of his investment portfolio, the City veteran has told investors in his £9.1 billion Fundsmith Equity Fund that he was amazed by financial experts who “seem obsessed with trying to predict macro events on which to base their investment decisions”.
Standard Chartered Boss drawn into theatre’s ‘yellowface’ row: Bill Winters dreamed of being a diplomat when he was young, but couldn’t afford to pay for the necessary study. Instead, he went into banking, made millions and now runs Standard Chartered, one of the world’s biggest emerging markets banks.
Investors have little appetite for breakfast at McDonald’s: Fourth-quarter sales at established restaurants in the United States fell by 1.3% compared with the same period in 2015, the burger chain said, because of a “challenging comparison” against the launch in October that year of the “very successful” all-day breakfast menu.
U.S. investigating Yahoo over hacks: Yahoo is being investigated in the United States and other countries over two huge hacking attacks that led to the theft of personal information from more than 1.5 billion of its customers’ accounts.
Law firm failure costs Barclays £25 million: Barclays is set to lose £25 million as a result of the demise of King & Wood Mallesons, a prominent City of London law firm.
The Independent
Brexit to cost Britain more than 5% of GDP by 2030: Analysts from three City of London financial institutions expect the cost of Theresa May’s hard Brexit to add up to between 5% and 10% of GDP by 2030.
Men who supplied workers to agency linked to Sports Direct convicted: Two Polish brothers who recruited staff for an agency that supplied Sports Direct have been convicted of an offence under the Modern Slavery Act, the BBC’s Home Affairs correspondent Danny Shaw reports.
Digital sales deal blow to GAME and other high street retailers: The physical entertainment market for music, videos and gaming suffered a brutal hit over the crucial Christmas period, dealing a sharp blow to retailers like GAME, according to data out Monday.
U.K. faces years of rising unemployment and squeezed incomes, says EY: Britain is facing three years of slow growth, rising unemployment and squeezed consumer spending as the Brexit-induced collapse in the pound triggers a radical rebalancing of the economy.
Dollar and stocks slip on concerns around Donald Trump’s policies: The dollar and major stock indexes slipped on Monday, after U.S. President Donald Trump used his inaugural address on Friday to underscore his protectionist agenda, unnerving some investors who had hoped for a more conciliatory tone.
Brexit could cut wages by 30% over 20 years says private equity Boss: One of the highest profile names in finance has said that Brexit is going to lead to dramatic economic upheaval which will be bad for most people but good for his multi-billion-pound private equity firm.
Optimism in financial services sector hits crisis era-low as Brexit concerns top worry list for banks: Optimism about the trading environment for the U.K.’s financial sector slipped for a fourth straight quarter in the three months to December, the lengthiest decline in sentiment in eight years and largely a result of Brexit-related concerns, a new survey shows.
Shell pays out bumper £11.1 billion dividends in 2016, as U.K. multinationals are boosted by Brexit: Shell paid out the biggest dividend in the world in 2016, thanks at least in part to Brexit. The Anglo-Dutch oil giant distributed £11.1 billion to shareholders, £3.2 billion more than in 2015. Many U.K.-based multinationals, who generate significant revenue abroad, experienced a similar boost, a report from outsourcing firm Capita has showed.
Lloyds Bank reported to be trying to identify who was behind a cyber-attack against its banking website: Lloyds Banking Group is working with law enforcement agencies to identify who was behind a cyber-attack that caused the group’s personal banking website to suffer temporary outages earlier this month, Reuters reported on Monday, citing a source familiar with the matter.
The Daily Telegraph
Global markets turn back on euro as economic woes reinforce dollar as the currency of choice: Banks are using the euro less and less in international transactions, with financiers preferring to use dollars - indicating the euro’s declining importance in the global economy.
BP starts up new $1 billion Gulf of Mexico project almost one year early: BP has started up one of its first major projects in the Gulf of Mexico since the Deepwater Horizon disaster, almost a year ahead of schedule and $150 million under budget.
Wanda buys Scandinavian cinema chain Nordic to expand Odeon empire: The Chinese conglomerate Wanda has added a Scandinavian arm to its global cinema empire with the £745 million takeover of Stockholm-based Nordic Cinema Group.
LME Boss steps down after difficult year: The Boss of the London Metal Exchange has stepped down abruptly after three years in charge. The world’s oldest metals exchange said that Garry Jones was “retiring” as an Executive Director of the LME with immediate effect. LME said he would serve as an “advisor” for the rest of the year.
Trump effect and ‘green shoots’ in China put shine on diamond market, says Petra: After a tough few years of sinking prices, the diamond market could be regaining some of its lustre, the Boss of Petra Diamonds has suggested. Donald Trump’s plans to pour stimulus into the U.S. economy and cut taxes could give retail consumption there a shot in the arm, Johan Dippenaar said.
British factory workers paid £3 an hour making clothes for high street giants: British factory workers have been paid as little as £3 an hour to make clothes for a high-street chain including New Look and River Island, a new investigation has claimed.
Yahoo reveals $4.8 billion deal with Verizon delayed: Yahoo revealed its $4.8 billion deal to offload its main web business to Verizon Communications has been delayed, just hours after it emerged the company is under investigation for the two record data breaches that have cast a shadow over the sale.
Fitch warns time is running out for China’s debt-driven boom: China is creating credit at twice the pace of underlying growth and is relying on hazardous bubbles to keep growth running far above the safe speed limit, Fitch Ratings has warned. Short-term stimulus is papering over deep cracks in the economy and vital reforms are being neglected, storing up serious trouble for the future.
The Guardian
MPs question post-Brexit viability of May’s industrial strategy: Trade unions, MPs and business leaders have questioned whether the government’s new industrial strategy will succeed if Britain leaves the single market in Europe, despite Theresa May pledging that it will create a platform for businesses to grow after Brexit.
Theresa May’s post-Brexit industrial strategy ducks tough decisions: Hurrah, the U.K. will embark on its post-Brexit adventure with an industrial strategy, or at least a government that is prepared to use the term without embarrassment. What’s more, the business secretary, Greg Clark, hit some of the right notes in his introduction to the green paper.
U.K. tech industry not immune to Brexit, trade group warns: Britain’s booming technology sector risks being forgotten in the rush to cushion traditional industries from the impact of Brexit, business leaders have said.
Financial firms in talks with Amsterdam over relocation from London: Amsterdam is in talks with major financial institutions based in the city of London about their imminent relocation to the Dutch capital, but its deputy mayor has warned the national government that the country’s strict cap on bankers’ bonuses could put it at a disadvantage in the Europe-wide scramble to capture Britain’s financial sector.
Ticket touts rebrand as investigations put them in spotlight: Some of the U.K.’s most prolific and successful ticket touts appear to be rebranding their organisations as the industry braces for investigations by the competition watchdog and the taxman in the U.K.
Jeanette Winterson to close London shop due to business rates surge: The writer Jeanette Winterson is to close her shop in London because of an overhaul of the business rates system, which will dramatically increase the amount of tax retailers pay in the capital.
Paddy Power Betfair takes £5 million hit from Trump election win: Paddy Power Betfair blamed the unlikely pairing of Donald Trump and the Manchester United striker Zlatan Ibrahimovic as it cut its full-year profit forecast.
Daily Mail
Housebuilders Bovis and Berkeley rise after investor Schroder urges a merger: Housebuilder Bovis shot up after one of its largest investors urged a merger with rival Berkeley. Schroder Investment Management is reported to have written to London-focused builder Berkeley advising it to consider a merger with its smaller counterpart.
Hedge funds bet that commodity prices are on the up: Hedge funds are betting that commodity prices are on the up as they pile into everything from crude oil to live cattle. Analysis by Saxo Bank shows bets on price rises now outweigh those on price falls by the most since June 2014.
Sainsbury’s Chief used supermarket’s staff to do up his £1.5 million country bolthole: Sainsbury’s chairman used the supermarket giant’s staff and its suppliers to revamp his £1.5 million country bolthole.
Three snared after Barratt fraud probe: Cash-for-contracts scandal deepens at top British housebuilder: One of Britain’s biggest housebuilders has suspended at least three more staff following the arrest of an Executive on suspicion of bribery in a cash-for-contracts scandal.
Sparkling sales at Petra Diamonds with production from its mines in South Africa and Tanzania up 24%: Production and sales are soaring at Petra Diamonds. The miner produced more than 2 million carats during the six months to the end of 2016 – thanks to better yields from its mines in South Africa and Tanzania – an increase of 24% on the same period the year before.
Bankers to get a £31 million payday from takeover of Punch Taverns by Heineken: The £402 million takeover of Punch Taverns by Heineken will land advisers a £31million fees bonanza.
Daily Express
European stocks crash to lowest levels of 2017 amid Trump fears: Fears over Donald Trump’s presidency shook global markets during Monday trading, pushing stocks in Europe to their lowest levels in a month.
Theresa May’s industrial strategy ‘to shape global Britain’: Prime Minister Theresa May has said the Government’s flagship new industrial strategy will be about “shaping a new future for the U.K. as a global Britain” after Brexit.
ECB’s Brexit threat: Bank could launch crackdown on London’s euro-clearing industry: Britain’s financial powerhouse is to lose valuable rights to process hundreds of billions of daily investment trades made in euros when it breaks from the European Union (EU), the European Central Bank (ECB) has warned.
Pound hits one-month high against dollar investors ‘lose patience’ with Trump: The pound smashed through the 1.24 mark against the dollar in Monday morning trading, as nerves over new President Donald Trump take their toll on the American currency.
Care home raises thousands of pounds from twitchers who flocked to see rare bird: A care home has raised thousands of pounds for the needy - by collecting from hoards of twitchers who have flocked to see a rare bird.
The Scottish Herald
Law firm lands Merlin deal: The Edinburgh office of law firm DLA Piper has struck a deal to provide legal services to Merlin Entertainments, the company behind the Alton Towers and Legoland resorts.
U.S. giant looking to boost North Sea output: Oil and gas engineering firm Xodus has won a contract to work on two North Sea wells for Apache, which signal continued interest in the area on the part of the U.S. oil and gas giant.
Burns Night bonanza for butcher: As Burns Night approaches, family butcher Simon Howie has seen record breaking sales for its range of haggis products.
Teviot looks for Firestarter: Marketing consultancy Teviot has launched a year-long paid internship for a student at Edinburgh College’s Visual Communication HND course.
Oil workers paid in shares: North Sea-focused developer Independent Oil & Gas has revealed a number of Directors and managers continued to receive all or part of their salaries and fees in ordinary share options from March 1 until August 31, 2016, after a similar structure ran from September 2015 until February 2016. The shares carry a reference price of 18.96p.
Stuart Patrick: The signs are positive for Glasgow on the tourism front: Growing Glasgow’s tourism was always an important goal of delivering the Commonwealth Games, and the aim of the action plan is clear - an extra one million visitors to the city each year, injecting more than £750 million to the economy. The signs for this are positive.
Hotel firm warns of Brexit hit to hiring: Apex Hotels has warned the U.K.’s move towards Brexit will make it more difficult to recruit employees, noting 76% of its housekeeping staff in London come from other European Union countries.
No rate rise forecast before 2019: Economists forecast the Bank of England will hold U.K. base rates at their record low of 0.25% until at least 2019, in spite of rising inflation resulting from sterling’s post-Brexit vote weakness, a poll by Reuters reveals.
SEP supports university entrepreneurs: Venture capital firm Scottish Equity Partners has announced a “significant donation” to a fund which invests in businesses run by staff, students and alumni of the University of Strathclyde.
Recruitment firm highlights risks posed by Brexit mid pressure on lawyers to earn fees: The Brexit vote has created a risk European Union nationals working in financial services industry could leave Scotland according to a recruitment specialist which noted law firms have been removing ‘low billers’ amid the resulting drop in deals.
Clothing firm has £500,000 target for crowdfunding bid: A Scottish clothing brand which specialises in fashionable yet “technical” outdoor jackets for women has embarked on a £500,000 crowdfunding drive.
Lerwick Harbour boosted by tourists as it offsets decline in oil and gas: The appeal of Shetland as a stop on cruise trips has helped increase arrivals to Lerwick Harbour, but the ongoing downturn in the North Sea held back growth.
Gloag buys Edinburgh aparthotel in £6.3 million deal: Ann Gloag’s investment company has revealed it is behind the £6.3 million purchase of an Edinburgh office building, which will be transformed into serviced apartments in a £6 million refurbishment.
Head of exploration at Shell to take on big job in Asia: Royal Dutch Shell’s Head of exploration Ceri Powell, who has been included on Fortune Magazine’s list of the world’s most powerful women, is moving to a new post. The Welsh Executive will become managing Director of Brunei Shell Petroleum in March.
The Scotsman
Hotel group Apex eyes further investment: Scottish hotel group Apex is eyeing fresh investment and acquisition opportunities after hailing a “strong” full-year outcome.
Cautious optimism for finance sector after gloomy 2016: Confidence among Britain’s financial services firms dropped again in the last three months of 2016, although some sectors forecast an improvement in business conditions in the current quarter, according to research published.
Manor F1 team in race against clock to stay on track: The Manor Formula 1 team is facing a race against the clock to secure its survival as the cash available to pay its 200 staff is set to run out within days.
£1 billion renewable project sails ahead with subsea cable move: A £1 billion project to deliver renewable power from Scotland to homes and businesses in England and Wales has taken a step forward with what is claimed to be the world’s largest subsea power cable coming ashore.
Possible float of Green Investment Bank in place of sale: The U.K. government is to ditch plans to sell the Edinburgh-based Green Investment Bank (GIB) in favour of a £3.8 billion flotation, according to a newspaper report.
City A.M.
Halliburton shares fall: “The international downward cycle is still playing out”: Halliburton’s share price fell over 2% after revealing soft markets outside North America were only partially compensating for loss-making international operations.
EU follows U.K. lead and considers plans to test bank defences against a cyber-attack: The EU is contemplating plans to test banks’ ability to repel cyber-attacks in an initiative that would mirror measures already put in place by the Bank of England.
The Supreme Court’s Article 50 verdict is unlikely to derail Theresa May’s Brexit timeline: A landmark Supreme Court ruling is unlikely to derail plans for Prime Minister Theresa May to begin Brexit talks before April – whatever the outcome.
U.S. President Donald Trump gets to work with Executive order to scrap Trans-Pacific Partnership and border tax threat: Donald Trump kicked off his first week as President by signing an Executive order withdrawing the U.S. from the Trans-Pacific Partnership trade deal, branding the move a “great thing for the American worker”.
Xi Jinping and Donald Trump have fired the opening salvoes of the coming trade war: It’s only the first week of Donald Trump’s presidency, but the contrast between Trump’s “America First” protectionist rhetoric and other world leaders’ hopes of globalisation working for the many could not be starker.
European consumers keep on ignoring politics as confidence improves for fifth month in a row: Consumers in the Eurozone continue to ignore the looming political risks in the bloc, with confidence improving for the fifth month in a row.
GCHQ Director Robert Hannigan has resigned for personal reasons: GCHQ top Boss Robert Hannigan has stepped down citing personal reasons, the surveillance agency has announced.
Financial adviser DeVere Group launches new private bank: Those looking for a place to stash their cash have a new option, with financial consultants DeVere Group launching a private bank. DeVere Group Bank St Lucia, which the group understands to be the first private bank to be independently owned by a financial advisory firm, was created out of the firms acquisition of Arton Bank.