Newspaper Summary
The Times
Chief of BT Italy sold £675,000 of shares before scandal broke: A top BT Executive with responsibility for the telecoms company’s Italian division sold more than half a million pounds’ worth of shares before financial irregularities were revealed to investors this week.
A world flowing with oil for 30 more years: The world has access to more than twice as much oil as it will need between now and 2050, which will dampen the long-term outlook for prices, according to BP.
Fair wind is forecast for renewables: Renewable power will be the fastest-growing fuel source over the next two decades, with output more than quadrupling by 2035, BP believes.
Santander sounds the alarm on surge in cheap unsecured loans: The head of one of Britain’s largest lenders has become the latest senior banker to sound a warning about the risks of over-heating in the consumer credit market, saying the cost of offering personal loans has become too cheap to make money.
Scunthorpe steeling itself for profit: The Scunthorpe steelworks that was haemorrhaging losses of up to £2 million a week last summer will more than break even this financial year and is expected to turn a profit of £120 million next year.
Fresnillo pays price for taking its golden shot: Every silver lining has a cloud, apparently, at least as far as the London Stock Exchange was concerned after Fresnillo announced record production numbers. The miner, which specialises in silver, said in a trading update that its output of the metal had risen by 7.1% to 50.3 million ounces in the past year, boosted by increased production at its San Julián mine and higher-grade ore at Ciénega in Mexico.
Next lifts the curtain on child labour in factories: Next uncovered eight instances of children working in its factories abroad last year and said that fashion retailers had to maintain a constant vigilance to prevent human rights abuses.
Investors take warning as cue to quit dining chain: The scale of the challenge facing the new Chief Executive of The Restaurant Group was made starkly clear when Andy McCue, who replaced Danny Breithaupt in the job in September, called it “a turnaround situation”.
Met reveals more arrests in Barratt bribery investigation: An alleged cash-for-contracts scandal that has engulfed Britain’s biggest housebuilder went further than previously thought, the Metropolitan police said as it gave details of two further arrests at Barratt Developments.
WH Smith cashes in on captive audience: Southern rail strikes and fog at London airports may have stymied some Britons’ travel plans but they did no harm to WH Smith. The newsagent has reported a 2% rise in total group revenue in the 21 weeks to January 21 and has raised its full-year profit guidance.
Weak yen lifts Japan forecasts: Exports from Japan have risen for the first time in 15 months, suggesting that the weak yen is finally boosting external demand.
Consultant hits jackpot in flotation: A gambling consultant being investigated by Canadian authorities over allegations of insider trading is set to collect C$4.5 million from Jackpotjoy after the online bingo operator completed its London listing.
Shoppers feel the squeeze from inflation: Inflation has hit its highest level for more than two and a half years and threatens to increase the squeeze on families’ spending power, Asda has warned.
We won’t sell to asset-stripper, says Minister: The government has defended its contentious £2 billion sale of the Green Investment Bank to an Australian merchant bank, saying that it would not sell the investment fund to an “asset-stripper”.
Weak pound adds weight to manufacturers’ recovery: Factories have started 2017 on the front foot, with total orders climbing to their highest level in nearly two years and optimism about future prospects surging well above average.
London banks to discuss relocating to Frankfurt: Executives from more than 20 London-based banks are expected to meet German regulators on Monday for a private briefing on relocating to Frankfurt. The meeting, the first such gathering of its kind in Germany, is being hosted by Bafin, the financial supervisor, to cope with increasingly detailed inquiries from banks after Theresa May said Britain would be leaving the EU single market.
The Independent
Impact of immigration on native wages ‘infinitesimally small’: The author of an influential piece of economic research frequently heralded by leading Brexiteers as evidence that immigration from the European Union undermines native British wages has stressed that the negative impact is “infinitesimally small” and that his findings had been widely misrepresented.
Co-op cracks down on supply and sale of unethically source tuna: The Co-op is cracking down on the supply and sale of unethically sourced tuna, holding some of its biggest brands to account.
This is what Donald Trump’s presidency has done to the dollar: The pound recovered on Wednesday while the dollar fell, hit by fresh concerns of what U.S. President Donald Trump’s policies would mean for global trade and markets.
Newspapers cut Facebook and Snapchat content due to meagre returns: Newspapers and other media outlets are struggling to make money from their partnerships with tech giants like Facebook and Snapchat, raising concerns over their business models in a news landscape increasingly dominated by social media platforms.
E.On Boss says Trump causing serious setbacks to climate change effort: German utility E.On, which owns billions of euros worth of wind parks in the United States, said global efforts to tackle climate change were suffering serious setbacks, singling out the election of Donald Trump as a key obstacle.
Trump’s Chief Economic Advisor to receive $284 million from Goldman Sachs: Gary Cohn’s jump from Goldman Sachs to Donald Trump’s administration is helping him unlock more than $284 million (£227 million) in bonuses, shares and other investments through the Wall Street bank.
Tesco shares fall on report of new legal action over accounting botch: Shares in Tesco fell on Wednesday following a report that the supermarket giant is facing a fresh claim for damages to one of its investors, relating to a historical accounting scandal that wiped billions off the company’s share price at the time.
Santander posts rise in profit as Brazil makes up for poor U.K. figures: Spain’s Banco Santander posted a 4% rise in 2016 profit on Wednesday, thanks to a robust performance in its Brazilian business offsetting lacklustre figures out of Britain.
Chinese New Year 2017: London to experience shopping ‘gold rush’ during Year of the Rooster celebrations: Chinese visitors to the U.K. could spend over £11 million in London over the next week alone, as they visit the capital to celebrate the start of the year of the rooster, according to global payment provider Worldpay.
The Daily Telegraph
RBS to set aside $4 billion for U.S. settlement over toxic mortgage securities: Royal Bank of Scotland is to set aside about $4 billion to deal with allegations from U.S. authorities that it mis-sold toxic mortgage-backed securities in the run-up to the financial crisis.
BT scandal joins VW and Tesco in crosshairs of shareholder legal action specialists: BT is being targeted by the shareholder litigation specialists behind massive damages claims against Tesco and VW, after nearly £8 billion was wiped off the telecoms giant’s stock market valuation by an accounting scandal and contract slump.
Eurozone set for years of stagnation and crises as members drift apart, Moody’s fears: The single currency is failing to bring its economies closer together, with the strong core nations pulling ever further ahead of the weak periphery - leaving the Eurozone as a whole set for years of stagnation and political crises, according to analysts at credit ratings agency Moody’s.
Discovery goes to war with Sky over channel fees with blackout threat: Discovery, the U.S. media giant behind the TLC and Eurosport channels, has issued an extraordinary public threat to withdraw all its programming from Sky over claims it “refuses to pay a fair price”.
U.K. car production drives to 17-year high but investment stalls on ‘uncertainty’: The U.K. car industry is in rude health, hitting a 17-year production high in 2016, but concerns over Brexit saw investment fall by a third, industry figures have revealed.
Boeing soars to a record as Dreamliner flies into profit: Boeing shares have soared to a record high as the aerospace and defence giant said its flagship 787 Dreamliner airliner is no longer loss-making and it expects to deliver more airliners this year.
Santander Boss: London to remain Europe’s financial hub: London will not lose its status as Europe’s pre-eminent financial hub in the wake of Brexit, according to the Boss of Santander, one of the world’s most influential bankers.
Former AssetCo Directors rapped over financial conduct: The former Bosses of beleaguered firm AssetCo have been disciplined by the accounting regulator over their financial conduct.
Strike threat brews at Escondida, the world’s largest copper mine: The finely balanced global copper market could see a further jump in prices after unions at the world’s largest copper mine vowed to strike over pay.
Retirement house builder McCarthy & Stone brushes off Brexit dip: Retirement house builder McCarthy & Stone has shrugged off a drop in business in the weeks after June’s European Union referendum to post a 5% rise in the value of its sales.
The Questor Column:
Hargreaves Lansdown’s exceptional profitability looks unassailable: The admission reflects two facts about the market for investment shops: that Hargreaves’ service is very good, and that investors tend to be reluctant to switch firms, even when a cheaper rival is available. When a company that charges more than its competitors is able to attract, and retain, the lion’s share of the available custom, as Hargreaves is, it is clearly doing something right. In his December update to investors he noted that the share price of an investment administrator such as Hargreaves would normally rise when the markets did, but that in 2016 this relationship had broken down: shares in Hargreaves had fallen by 17% while the FTSE 100 had gained 16%. If and when the correlation is re-established, the shares can be expected to rally strongly. He said this meant that the “quality” of Hargreaves’ total dividend was improving, as the special or possibly non-recurring proportion of it declined. Questor would add that the recent dramatic changes in the pensions landscape should also benefit the firm. Our only concern is valuation, which at 32.1 times earnings looks on the high side. One to tuck away for long-term growth. Questor says ‘Buy’.
The Guardian
Trump’s wall: Mexican construction firms likely to be biggest winners: The biggest winners from the construction of Donald Trump’s “big, beautiful, powerful” wall along the U.S.-Mexico border are likely to be Mexican cement companies and construction workers.
Car industry tells PM tariffs are ‘red line’ issue that could cost U.K. jobs: The car industry has told Theresa May that the introduction of tariffs after Britain leaves the EU is a “red line” issue that would lead to a fall in sales and potentially result in job losses.
Brexit economy: weak pound stokes inflation as jobs market cools: The pressure on the pound from Britain’s vote to leave the EU is stoking inflation, denting household finances and putting a brake on spending, according to a Guardian analysis.
‘It’s a crisis that keeps on hurting’ - experts debate Brexit watch data: Professor of economics at Dartmouth College, New Hampshire, and former member of the Bank’s MPC from June 2006 to May 2009
British Steel to reverse salary cut for workers agreed under Tata: British Steel will reinstate the salary it was paying workers before they accepted a pay cut last year, after predicting a return to full-year profits months after it appeared on the verge of collapse.
Daily Mail
As World Bank forecasts value of precious metals will fall, so price of gold, silver and platinum tumble: As the World Bank forecast that the value of precious metals would fall, so the price of gold, silver and platinum tumbled.
Study says Scotch whisky creates almost £5 billion a year for U.K. economy: Scotch whisky creates almost £5 billion a year for the U.K. economy, a study says. Research commissioned by the Scotch Whisky Association (SWA) found that the industry supports more than 40,000 jobs across Britain.
Number of savers switching to Santander’s 123 account tumbled after bank slashed interest rates: The number of savers switching to Santander’s 123 account tumbled after the bank slashed interest rates. The lender said only 483,000 customers switched to its account in 2016 compared to around one million the year before.
Founder of online fashion retailer Asos sells £15.5 million worth of shares in order to pay tax bill: The Founder of online fashion retailer Asos has sold £15.5 million worth of shares in order to pay his tax bill. Nick Robertson, who stood down as Chief Executive in 2015 to become a non-Executive Director, cashed in 300,000 shares at a closing price of 5175p.
Cash-for-contracts scandal engulfing one of Britain’s biggest builders sees four people arrested on suspicion of bribery: The cash-for-contracts scandal engulfing one of Britain’s biggest builders has seen four people arrested on suspicion of bribery, it has emerged.
Daily Express
‘The pound is irrelevant’ German financial giant Deutsche Bank in shocking Sterling swipe: Germany’s biggest lender Deutsche Bank has branded the pound “irrelevant” following Britain’s vote to leave the European Union (EU).
Pound jumps to six-week high - and could go higher, say experts: The pound has rocketed to a six-week high after Theresa May agreed to give MPs a Brexit white paper.
Dow hits record high 20,000 as Donald Trump’s Mexico wall boosts markets: America’s top stock index the Dow Jones surged at the open to reach its highest ever level and hit the key 20,000 mark for the first time ever, amid a rally sparked by new President Donald Trump.
The Scottish Herald
Brexit ‘hiatus’ hampers city property markets: Investment in Scotland’s commercial property market fell 12% last year as the Brexit vote all but ground activity to a halt for a period.
New orders and costs increase in manufacturing sector: The Scottish manufacturing sector enjoyed a rebound in its new order volumes in the latest three months, a survey has shown.
Half of firms in North Sea to cut jobs: More than half the oil and gas firms operating in the North Sea expect to cut jobs in the area this year after confidence levels hit new lows a study has found.
Havelock in shares boost after £21 million order update: Shares in Havelock Europa have risen by more than 8% after the shopfitting specialist revealed it has £21 million of orders in hand.
EICC back in black after big rise in international events: Edinburgh International Conference Centre (EICC) has hailed its track record in attracting major international conventions as it booked its first profit since its £35 million expansion was completed in 2013.
Number of firms going bust falls in Scotland: The number of corporate insolvencies fell in the last quarter in spite of any uncertainty caused by the Brexit vote and the impact of the downturn in the North Sea.
Strathmore inks athletics deal: Scottish soft drinks giant AG Barr has secured a deal for its Strathmore brand to be the national supplier of bottled water for this summer’s IAAF World Championships and World Para Athletics Championships in London. It will see more than one million bottle of water supplied to athletes, officials and volunteers.
Uel Morton to step down after 11 years at the helm of QMS: Uel Morton, Chief Executive of Quality Meat Scotland (QMS), the red meat industry’s promotional body, will step down from his role later this year.
Builders to create 350 jobs in 2017: A trio of housebuilders is to create 350 jobs across Scotland this year as they embark on a range of new developments.
Mallzee app adds forecasting tools: Fashion shopping business Mallzee has enhanced its app with added a suite of insight and prediction tools designed to enable retailers to forecast the items that will sell well.
New tenants for Whisky Bond as 2017 gets off to strong start: Five new tenants have moved into The Whisky Bond in Glasgow, marking a “bright outlook” for the city’s creative sector in 2017.
The Scotsman
Health tech start-up lands contract with NHS England: An Edinburgh-based technology start-up that helps people find the care to meet their needs has landed a deal with NHS England as it aims to “disrupt” the £20 billion market.
Scotland’s pubs and restaurants less likely to go bust: Scotland’s hospitality sector has enjoyed a solid start to the year, with its restaurants and pubs less at risk of failure than the U.K. average, new research would suggest.
Minecraft maker 4J Studios has high hopes for Switch game: The Scottish firm behind the hit game Minecraft is hoping for another high score with a new instalment for Nintendo’s forthcoming Switch device.
T2 helps boost value of film industry to Edinburgh to nearly £8 million: A three-month shoot across Edinburgh on the sequel to Trainspotting boosted the value of film and television productions to the Capital to its highest level since records began 26 years ago.
Housebuilders give sector boost with plans for new sites: Three housebuilders have unveiled plans to construct hundreds of homes north of the Border, going some way to plugging the gap between supply and demand.
Appointedd broadens global reach with strategic partnership: Online booking management firm Appointedd has revealed a strategic partnership making its scheduling software available to more than half a million businesses globally.
City A.M.
At the top since the turn of the millennium: Admiral chairman steps down: Admiral non-Executive chairman Alastair Lyons will retire in April after nearly 17 years in the role.
St Helena aims for tourism boost despite airport woes: It became famous in the 1800s as the home of the exiled French Emperor, Napoleon Bonaparte, but in recent times St Helena has attracted more attention for the cost of its new airport.
Is blockchain a “new operating system for the planet”? Barclays vice chairman Jeremy Wilson thinks so: Blockchain has the potential to become “a new operating system for the planet” in a generation’s time, while mainstream commercial use is likely to happen within the next decade, one of Barclays’ top Executives believes.
Bank of England Governor Mark Carney warns fintech’s democratic revolution poses risk to financial system: The fintech revolution poses significant risks to the stability of the financial services sector, according to Bank of England Governor Mark Carney.
Czech it out: Central Eastern European M&A activity is booming: Mergers and acquisitions (M&A) activity slowed in the U.K. and across the world last year, but Central Eastern European deals came thick and fast.
City of London grants planning permission for new City skyscraper, 1 Leadenhall: Another skyscraper has moved one step closer to becoming part of the capital’s skyline, after the City of London’s planning and transport committee granted planning permission this morning.