Newspaper Summary
The Times
Insurers still hope to avoid painful rise in damages: Plans to change the way lump-sum payments to personal injury victims are calculated could still be amended to make the cost less onerous for insurers, according to Direct Line.
MPs examine Vauxhall pension deal: The Commons work and pensions committee is to investigate the sale of Vauxhall to PSA Peugeot Citroën.
Bentley’s nod to the past as it unveils electric sports car: The German-owned British carmaker showed its latest concept model, the EXP12 Speed6e. Two years ago, Bentley showed the EXP10 Speed6, a conventionally powered lidded two-seater at the Geneva Motor Show, a car that was immediately dubbed “The Aston Killer”, so close was it to the offerings of rival Aston Martin.
Worldpay rings up profits despite battling U.S. gremlins: The company that processes two in every five card transactions in the U.K. has been hit by delays in the migration of some of its biggest customers to a new IT platform.
Don’t bet on a cash return, warns Paddy Power Betfair: Paddy Power Betfair admitted that it was unlikely to return cash to investors this year and promptly lost almost 6% of its value.
President hails Exxon’s $20 billion boost for U.S.: ExxonMobil has said that it could invest a total of $20 billion in the U.S. Gulf Coast and create more than 45,000 jobs over a decade through its planned refining, chemicals and liquefied natural gas projects.
John Laing tries to join Trump bump club: John Laing, the British development group, has said that for the U.S. to benefit from the expected “Trump bump” infrastructure windfall, it must warm to public-private partnerships.
Aramco pays Shell $2.2 billion to end joint venture: Saudi Aramco is to pay $2.2 billion to Royal Dutch Shell as the companies end their U.S. refining and marketing joint venture, with Aramco taking on the majority of the assets.
Vaping firm faces going up in smoke: FRP Advisory has been appointed as administrator to Must Have, an e-cigarette and vaping business that trades as VIP, and will attempt to sell the chain.
House prices grow at slowest in four years as inflation begins to bite: House prices rose at the slowest pace in nearly four years last month, according to Britain’s biggest mortgage lender, in a sign the market is beginning to cool.
The Independent
Donald Trump sends Pharma stocks plummeting with new tweet: President Donald Trump’s latest pledge to drive down to drug prices has sent pharmaceutical stocks falling again after just one tweet.
Japan just made it a lot easier to move there permanently: The Japanese Ministry of Justice has reportedly made it easier for foreigners to become permanent residents in Japan as the government seeks to attract new talent, keep highly skilled overseas workers and boost productivity.
Shop prices are up, sales are down and the housing market is slowing: U.K. retailers offered further evidence on Tuesday that they may be in for a tough year, while new data also showed the housing market is facing a slowdown.
Most cars sold in Norway are now either electric or hybrid: Norway said that electric or hybrid cars represented half of new registrations in the country so far in 2017, as Norway continues its trend towards becoming one of the most ecologically progressive countries in the world.
You could soon buy Prada and Versace through WhatsApp: Online luxury retailer Yoox Net-a-Porter said it is developing technology to allow customers to buy products directly through WhatsApp as the e-commerce market for Prada and Versace goods becomes more competitive.
White House plagiarised an entire paragraph from Exxon’s press release: A statement from the White House congratulating oil giant ExxonMobil on the expansion of its operations in the Gulf of Mexico appeared to lift an entire paragraph from the company’s press release.
Banking jobs denied to young people due to having ‘wrong accents’: Young people from disadvantaged backgrounds are being denied jobs in finance because they have the “wrong” accent and do not wear the correct clothes, a new study has found.
The Daily Telegraph
Treasury to offer North Sea a helping hand in late-life: The Chancellor is planning to step in to help the aging North Sea oil and gas sector by investigating ways the tax system could help to extend the life of projects.
Barratt venture with Morgan Stanley review contracts amid corruption probe: A joint venture between house builder Barratt Developments and Wall Street giant Morgan Stanley to develop a £275 million residential project on the banks of the Thames is examining contracts it has awarded, as part of a wider investigation into potential corruption in London at the British company.
BP plans seven ‘massive’ projects this year but signals caution over market recovery: BP is bringing on seven “massive” projects this year in the biggest expansion the company’s history but has brought down costs in a wrenching adjustment and is not banking on a recovery in oil prices this decade.
AstraZeneca Chief enjoys leap in pay packet as bonuses pay off: AstraZeneca’s Chief Executive, Pascal Soriot, enjoyed a 68% surge in his annual pay packet last year as a number of long-term incentive plans and other rewards paid off.
Ashtead in top gear as Brexit fears subside: Mr. Drabble, who has led FTSE 100 equipment hire company Ashtead for a decade, said he had feared the worst post-Brexit, but that most of his worries had been unfounded.
Switch is ‘fastest-selling console in Nintendo’s history’: The Nintendo Switch has become the fastest-selling games console in the Japanese company’s history, according to sales figures for Europe and North and South America.
Car Bosses ramp up the rhetoric on free trade as Ford, BMW and Jaguar Land Rover warn of Brexit fears: Senior figures in the car industry have reaffirmed the importance of maintaining tariff-free trade after Brexit. Speaking at the Geneva Motor Show, Bosses at three of the world’s leading car companies warned of the potential impact on the U.K. of losing free trade with the EU, warning that tariffs could jeopardise British workers.
Personal injury rule change wipes £217million off Direct Line profits: Insurance company Direct Line has seen its pre-tax profits hammered by a Government move to change the way accident victims are compensated.
The Questor Column:
This 7.2% yield is not all that it seems – beware the Game Digital value trap: Video games specialist Game Digital already has one unhappy experience as a public company under its belt and events since its return to the market in 2014 suggest that its second stint may not be much happier for investors. Last year’s figures were ugly, as sales and profits fell and the dividend was cut, the share price chart is uglier still and January’s trading update offered little encouragement. The firm still looks dependent on video console launch cycles and the emergence of the next smash hit game. Admittedly, management is trying to develop other revenue streams, through digital content and in-store gaming experiences, even as it cuts costs. However, the fiercely competitive nature of the market, the war between online and traditional retailers and the tempting but uncovered 7.2% yield all suggest that the stock could be a value trap. Questor says ‘Sell’.
Carillion: Anthony Bolton, the highly successful former fund manager at Fidelity, always said his biggest mistakes came with stocks whose balance sheet was weak (or less robust than it appeared). Bearing this in mind, investors should be wary of Carillion, the support services firm. According to the full-year results for 2016, released last week, net debt is £219 million (although the figure averaged £587million over the year) and the pension deficit has swelled to £663m. Interest payments of £60 million and pension contributions of £47million compare with last year’s group operating profit (before joint ventures) of £146 million, while slim operating margins of 2.8% leave little room for anything to go wrong. Management is sensibly targeting debt reduction. But governments are tightening up on spending, pricing is getting tougher and Carillion has admitted that forward visibility (from its order book) has declined. A prospective yield of 8.9% is eye-catching, but earnings cover is only 1.8 times and the lowly p/e multiple of six times expected earnings is the market’s polite way to say that it does not entirely trust either the earnings or dividend forecast. Questor says ‘Sell’.
The Guardian
Nestlé to remove 10% of sugar from all snacks in U.K. and Ireland by 2018: Nestlé, one of the world’s biggest chocolate manufacturers, will take 10% of the sugar out of its confectionery in the U.K. and Ireland by 2018.
Solar power growth leaps by 50% worldwide thanks to U.S. and China: The amount of solar power added worldwide soared by some 50% last year because of a sun rush in the U.S. and China, new figures show.
Vauxhall’s Luton and Ellesmere Port factories will face battle after 2021: Vauxhall’s factories in Ellesmere Port and Luton will have to battle with Peugeot, Citroën, and Opel plants across Europe to win the right to produce vehicles beyond 2021.
Food inflation doubles in a month as U.K. shoppers start to feel the pinch: Supermarket inflation doubled last month as shoppers had to pay more for staples such as butter and tea, underlining expectations that household budgets will come under extra pressure in 2017.
Bank of England deputy Governor gets warning over conflict of interest: The Governor of the Bank of England has censured his new deputy Governor after she admitted breaking Bank rules by failing to declare that her brother worked for Barclays.
Daily Mail
Private warnings for 14 bank Bosses: Watchdog issues secret rebukes to avoid full probe into bad behaviour: The Financial Conduct Authority has given 39 senior City Executives a quiet ticking-off in the past five years rather than publicly investigating them, figures released in a freedom of information request have revealed.
Mobile giants go to war over 5G: Rivals see sale of super-fast signal as a key opportunity to topple BT and Vodafone: Telecom giants have clashed ahead of the multi-billion-pound auction of the latest super-fast mobile networks. Some firms have called for BT and Vodafone bids for the next generation of phone signals, known as 5G, to be capped.
Deutsche’s Yorkshire-born Boss appoints his Chief financial officer as his deputy: Deutsche Bank’s Yorkshire-born Boss John Cryan, who insists he’s ‘not going anywhere’ as the troubled bank’s shares continue to slide, has appointed his Chief financial officer, Marcus Schenck, as his deputy.
Shares in PureCircle jump 7.5%: Sugar-free drink maker was banned from U.S. over slave labour fears: Shares in PureCircle jumped 7.5% after a U.S. ban on imports was lifted. Authorities had seized shipments after allegations surfaced about slave labour in the sugar-free sweetener manufacturer’s supply chain.
Daily Express
Hopeful Britons counting on 2017 property boom: Hopeful Britons are counting on a property boom with more than half believing their house will continue to rise in value this year.
Philip Hammond urged to change inheritance tax rules: PHILIP Hammond has been urged to change inheritance tax rules when he gives his 2017 Budget and raise annual thresholds that have been at the same level for more than 30 years.
‘Investigate price fixing’ Gina Miller launches fresh campaign to treat customers fairly: Anti-Brexit campaigner Gina Miller has demanded the financial regulator investigates a part of the investment industry for price collusion.
German economy crisis: Car demand plunges as factory orders hit lowest level since 2009: Falling demand for German cars has pushed the country’s manufacturing sector to record its worst month since 2009, raising fears for economic powerhouse of the Eurozone.
U.K. wages and job postings surge despite fears over divorce from EU: Britain’s labour market is experiencing an increase in wages and job postings despite uncertainty over Brexit.
Euro plunges as Marine Le Pen given big boost ahead of French elections: The euro has tumbled against the dollar after Marine Le Pen was given a fresh boost in the looming French Presidential elections.
The Scottish Herald
Free range milk attracts organic rebuke: Supermarket giant ASDA’s launch of a ‘free-range’ milk brand has attracted a sharp rebuke from the organic farming sector, which has pointed out that its legally-enforced standards have been keeping dairy cows outside on pasture for the last 20 years.
Gender-specific support planned: Women’s Enterprise Scotland (WES) has launched a training programme to improve gender-specific support among business advisors.
Oil services firm hails contract win: Aberdeen-based oil services group Proserv has won a multi-million-dollar contract to supply Premier Oil with subsea equipment for use off Indonesia. Proserv will supply a control system for the Bison, Iguana and Gajah Puteri development project in the Natuna Sea.
Lloyds finance division will lose out on PressureFab’s £400,000 debt: Pressurefab, the Dundee-based offshore container manufacturer which last year became a high-profile victim of the oil and gas downturn, went into administration owing more than £400,000 to the invoice finance arm of Lloyds Banking Group.
Lord Carloway gets four-day U.K. Supreme Court position: Scotland’s most senior judge and the legal system he oversees will arguably be the biggest beneficiaries when the U.K. Supreme Court decamps from London to Edinburgh for four days in June.
Business optimism stuck in negative territory: Scottish businesses are less confident about the economic prospects facing them over the coming year, compared with the preceding 12 months, a survey shows.
Shortages of staff fuel rise in pay as EU in focus: Permanent staff placements in Scotland by recruitment agencies rose in February, following four consecutive months of decline, but the pace of increase was modest, a survey shows.
Apprentices continue a tradition dating back to Roman times at distillery site in Girvan: Family-owned Scotch whisky distiller William Grant & Sons has underlined its commitment to continuing traditional skills by pledging to appoint two new apprentice coopers at Girvan, noting that this trade dated back to Roman times.
Cairn Energy to step up exploration off Senegal: Cairn Energy is stepping up exploration activity off Senegal after its latest well underlined the potential of a find made off the West African country.
‘Haunted’ inn added to Manorview portfolio: Manorview Group has added another property to its burgeoning portfolio of directly managed hotels.
The Scotsman
Fergus Ewing ‘will fight for Scotland’s farmers’: The Scottish Government will fight for the best deal for Scottish farmers in the face of Brexit, rural secretary Fergus Ewing promised as he attended ‘s Agriculture and Fisheries Council meeting in Brussels.
Aggreko warns on profits over Argentina contracts: Aggreko, the Glasgow-based temporary power specialist, issued a profit alert due to the repricing of legacy contracts in Argentina.
More than 800 jobs lost with Budgens store closures: More than 800 jobs have been lost after the owner of 34 Budgens stores, including two in Scotland, collapsed into administration.
Craneware hikes dividend after 23% jump in profits: Edinburgh-based software developer Craneware has unveiled a 16% increase in its dividend as it posted a surge in half-year profits.
American burger chain Five Guys coming to Edinburgh city centre: A popular American burger chain is opening a branch in Edinburgh City Centre.
City A.M.
Employers see skills shortages ahead as demand for talent rises according to the REC’s jobs report: Demand for staff in Britain has reached its highest point in 18 months as concerns over skills shortage rise for employers, a new survey of recruiters shows.
A forecast for a bounce in the U.K.’s GDP has put a spring in Philip Hammond’s step ahead of his first Budget: Chancellor Philip Hammond will give an upbeat assessment on the future of the British economy in his debut Budget, as the Organisation for Economic Co-operation and Development (OECD) becomes the latest body to upgrade its U.K. growth forecasts.
Biggest U.S. trade deficit since 2012 fans the flames of Donald Trump’s economic nationalism: The gap between America’s imports and exports with the rest of the world grew to its widest since March 2012, adding fuel to the fire of President Donald Trump’s economic nationalism.
Big upward revision for U.K. growth this year from the OECD: The U.K. economy will grow much faster this year than previously expected, according to an influential economics organisation, as it revised up forecasts it slashed after the Brexit vote.
Ford’s Essex-based financing unit gears up for possible shift to Germany to swerve Brexit fallout: Ford is mapping a possible move to Germany for part of its sizeable financing division, as the car manufacturer plots a route to avoid Brexit fallout.