Newspaper Summary
The Times
Smoke signals from diesel may warn of trouble ahead: Motor manufacturers could be exposed to losses of billions of euros from risky loans made by their lending businesses to help customers to buy diesel cars, analysts have warned. German groups such as BMW, Daimler and Volkswagen face losses of up to €3.5 billion each from their financial services divisions, according to a report by Sanford Bernstein, an American investment bank.
Emerging markets pay off for Aberdeen: Analysts cheered interim figures from Aberdeen Asset Management, in spite of the company’s admission that clients with a net £2.9 billion of assets had walked out of the door in the three months to March, continuing a four-year spate of defections.
Mandelson’s Executive berth in Global Ports is worth $120,000: Lord Mandelson will receive $120,000 a year to act as senior independent Director of Global Ports Holding, which is on track to be one of the biggest listings in London this year.
Delays over nuclear plan ‘damage U.K.’: The nuclear industry is being damaged by government dithering over plans for “mini” reactors, a House of Lords report has warned.
Eurozone wipes 1 million off jobless total: Unemployment continued to edge lower in the eurozone in March as the bloc made slow progress against its most intractable economic problem.
Euro weakness proves strength for manufacturing on Continent: Activity at Europe’s factories surged to a six-year high last month. The purchasing managers’ index for manufacturing rose to 56.7, the highest reading since April 2011. A figure above 50 indicates expansion.
Four years of falling shop prices ‘coming to an end’: Four years of falling food prices could be coming to an end as the impact of lower sterling and the Brexit negotiations takes hold.
The Independent
The U.K.’s longest flight just got longer: As demand soars for the first non-stop flight from the U.K. to Australia, Qantas has confirmed its website is understating the duration of the longest flight from London by an hour.
Ocado shares jump on hopes of M&S home delivery partnership: Shares in online retailer Ocado jumped by more than 8% on reports it might strike a deal with department store and food retailer Marks & Spencer which is considering becoming the latest company to offer home delivery across the U.K.
Greece reaches long-awaited deal with creditors on bailout reforms: Greek government officials said on Tuesday they have reached an agreement with its creditors on the terms to restart bailout loan payouts, following months of tough negotiations.
Banks stung customers with combined £300 million in ‘extortionate’ overdraft fees in 2016: Banks stung their customers with a combined £300 million in unarranged overdraft fees last year, often for going only a few pounds over their agreed limit.
More than half of U.K. university students pay more than £100 per week on rent as costs spiral: More than half of university students are now forced to pay more than £100 per week for accommodation as rents have soared in recent years.
Increased appetite for takeaways helps Just Eat to push up sales: An increased appetite for takeaway orders has helped push up sales at takeaway delivery company Just Eat by nearly half.
Liberty House to create 300 jobs as it completes £100 million takeover of Tata Steel U.K. division: Liberty House has announced that it will be creating 300 new production jobs in Yorkshire, as it completes its takeover of one of Tata Steel’s speciality divisions - a deal which will also safeguard around 1,700 existing Tata jobs.
The Daily Telegraph
Belgian finance Minister warns EU: change or die: Brexit has “shattered” the principle of ever closer union in the EU, according to the Belgian finance Minister, who warned that the bloc had to transform itself to survive.
LSE fires back at EU plot to seize euro-clearing: The London Stock Exchange has fired back at Brussels’ proposal to restrict London’s ability to host euro-clearing, warning that any restriction on the clearing of Euro swaps would “damage European issuers, savers, investors, pension funds and intermediaries”.
Morgan Stanley sells Affinity Water for £1.6 billion: Morgan Stanley has sold Affinity Water for £1.6 billion to a consortium of investors including FTSE 250 investor HICL Infrastructure and German insurance giant Allianz.
Warning over fake bank websites targeting British savers: Hundreds of fake websites that appear to be owned by major high street banks have been discovered online, raising fears that fraudsters are targeting U.K. savers.
Fierce discounting delays rise in inflation: Shops struggled to restrain prices in April, discounting vigorously in a bid to avoid a surge in inflation pushing customers away.
The Questor Column:
Telecom Plus well placed to benefit from a Conservative crackdown on energy prices: The Conservative Party’s proposed crackdown on energy providers may be worrying shareholders in SSE and Centrica but it would only serve to reaffirm the attractions of Telecom Plus’s business model, assuming the Tories are re-elected and the policy brought in. An acceleration of that trend could help Telecom Plus add to its 600,000 customers since it has a 20-year power supply deal with npower that is priced at a discount to the average standard variable tariff offered by the Big Six. As a result, Telecom Plus can offer competitive tariffs and also bundle services, as it provides broadband and telecoms as well as gas and electricity. Although investment in IT and new customer additions may mean profits come in broadly flat for the year to March 2018, a 4.2% dividend yield means investors will be paid to wait before a possible re-acceleration in earnings momentum in 2019. Questor says ‘Buy’.
Aggreko: An embarrassing attempt by Aggreko to reward Directors with shares for simply staying with the company for three years (albeit in exchange for capped bonuses and incentive schemes) was rightly pulled by the company after institutional investors did their job ahead of last week’s AGM. Chief Executive Chris Weston noted a 2% like-for-like increase in sales, compared with the 10% drop in 2016, and left guidance for a full-year drop in pre-tax, pre-exceptional profits unchanged. A stabilisation, or improvement, in the top line will help the generator and equipment rental specialist in its efforts to drive group operating margins up from 16% last year to its 20% target. If that 20% goal is met, earnings per share could reach the 80p mark at least, with a little sales growth, leaving the stock on a forward price/earnings ratio of barely 11 times. Questor says ‘Hold’.
The Guardian
U.K. needs £15 billion in cuts or tax rises to clear deficit by 2022, says IFS: It will take an extra £15 billion of spending cuts or tax rises to eliminate the budget deficit by the time of the 2022 election, a leading thinktank has said as it laid bare the damaging legacy of the financial crisison U.K. living standards and public finances.
Apple reports surprise drop in iPhones sales, again: Apple reported a surprise fall in iPhone sales for the second quarter on Tuesday, suggesting that customers had delayed purchases in anticipation of the 1oth-anniversary edition launch of the company’s core product.
Barclays Chief clashes with private equity firm over family dispute: Barclays Boss Jes Staley has incurred the wrath of one of the bank’s most powerful clients, private equity giant KKR, after backing his brother-in-law in a legal dispute with the buyout house.
Wealthy feel pinch of housing costs as one in four Australians face mortgage stress: The burden of housing costs is biting even in Australia’s wealthiest suburbs as an unprecedented one in four households nationally face mortgage stress, according to the latest in a 15-year series of analyses.
Italy’s Alitalia to enter administration after staff reject rescue deal: Alitalia has filed for administration for the second time in a decade, a move that could see the troubled Italian national carrier restructured, sold or finally wound up.
English vineyards report ‘catastrophic’ damage after severe April frost: English winemakers are reporting “catastrophic” crop damage after the worst frost in a generation wiped out at least half of this year’s grape harvest.
Daily Mail
BP trebles its profits on the back of oil price recovery, record production and cost-cutting: BP profits have nearly tripled after massive cost cutting and a boost from the oil price. The oil giant made £1.1billion over the first quarter of 2017 compared to £384million in the previous quarter.
Gold miner Avocet blames auditor Grant Thornton as shares are suspended following accounting gaffe: The firm was pulled from trading after failing to publish its annual report and financial statement for the year ending December 31, 2016 within four months of the year’s end. It quickly pinned the blame on auditor Grant Thornton, who it said needed more time to complete the filing
Green light for AstraZeneca’s immunotherapy bladder cancer drug revolution: A blockbuster bladder cancer treatment from AstraZeneca has been given the green light – the first commercial win for the giant since losing its best-selling cholesterol medicine to cheaper generics.
Husband of Penelope Judd, incoming Chairman, Plus 500 buys £100,000 stake: The husband of incoming Plus 500 Chairman Penelope Judd has bought a £100,000 stake in the spread-betting firm.
Investors vent their many grievances at scandal-hit HSBC’s AGM: HSBC’s recent AGM was its usual lively affair, with disgruntled investors venting their grievances at the scandal-ridden bank’s board.
Shamed Tory donor David Rowland throws in the towel in battle to control Falklands industries: Conservative Party donor David Rowland has thrown in the towel in the Falkland Islands after losing a battle to take control of its key industries.
Daily Express
ECB Chief Draghi issues Brexit threat as U.K. factory growth smashes forecasts: ECB Chief Mario Draghi followed in the footsteps of Brussels by issuing a direct threat to the U.K. over Brexit as Greece agreed a new austerity deal that will cut pensions.
Juncker goes to war with Italy’s oldest bank Monte dei Paschi putting bailout under threat: European Commission President Jean-Claude Juncker is demanding Italian bank Monte dei Paschi di Siena make radical jobs cuts to get its bail out.
EU’s Canada trade deal could be blocked by Emmanuel Macron as he steps up Frexit rhetoric: French election hopeful Emmanuel Macron has signalled he’s prepared to block the European Union’s (EU) lauded CETA free trade agreement with Canada.
808 Drinks hopes to drum up support to fuel international growth: 808 Drinks, the Scotch whisky company backed by superstar DJ Pete Tong and Warner Music U.K. Chief Max Lousada, is looking to raise £300,000 to fuel its international growth.
Bank of Mum and Dad helps quarter of home buyers on to propery ladder: The Bank of Mum and Dad is now one of Britain’s biggest lenders, helping more than a quarter of all property sales this year, research has revealed.
The Scottish Herald
BP Boss says outlook for North Sea is good: BP finance Chief Brian Gilvary has said things bode well for the U.K. North Sea amid expectations the crude price will remain above $50 per barrel.
Highlands and Islands role a dream for law firm founder: Professor Lorne Crerar feels like a very lucky man. As Chairman of Harper Macleod, the £25.7 million turnover law firm that he co-founded nearly three decades ago, he gets to do what he describes as his “dream job” on a daily basis. But, as he also holds the Chairmanship of economic development agency Highlands & Islands Enterprise (HIE), he gets to do his “second dream job” too.
Faichnie makes the case for Granite city deals: Veteran financier Tom Faichnie will tell U.S. investors to put Aberdeen on their radar in a speech to the Offshore Technology Conference in Houston next week.
Oil services veteran slams location bias of RSA grants: An Aberdeenshire businessman has slammed the “unfair” eligibility criteria for Scottish Enterprise Regional Selective Assistance (RSA) grants, saying an inability to access the funding is hampering his plans to create 100 jobs in the north east.
Amazon hails innovation in Edinburgh as it gears up for small business event: Amazon has proclaimed Edinburgh as the “ideal location” in which to invest and said its outlay in Scotland has helped thousands of small businesses to grow.
Forecast is positive for wind power researchers: A team of researchers from the University of Strathclyde have won an international wind power forecasting competition by accurately estimating how much energy would be generated by a portfolio of wind farms over a two-week period.
Brexit could send workers south: Builders are fearful there could be a skill drain to London and the South East if free access to labour is lost in the Brexit negotiations.
Services jobs in Arbroath saved: Eighteen jobs have been saved after Arbroath-based oil and gas services Mountwest Petroleum Engineering (MPEL) was bought out of administration last week.
The Scotsman
AAM says Standard Life deal ‘on track’ as profits jump: Aberdeen Asset Management (AAM) said its £11 billion merger with Standard Life was “on track” as it revealed its first-half earnings had jumped by almost a fifth.
Scottish Chambers urges quick deal on EU employees: Scotland’s smaller and mid-sized businesses have challenged the incoming U.K. government ahead of the forthcoming general election to fast-track an early deal on the future of EU workers after Brexit.
Shares returns to Edinburgh with investor gathering: Investors will have the chance to grill Bosses from seven listed companies at an event being held in Edinburgh later this month.
Grangemouth chemical plant evacuated due to ‘major incident’: The Grangemouth Ineos petrochemicals plant has evacuated workers after a gas leak.
Edrington swallows Glenrothes single malt brand: Famous Grouse-maker Edrington has swallowed the Glenrothes Speyside single malt brand for an undisclosed sum.
Expansion in store for life sciences firm Arrayjet: Arrayjet, the Midlothian life sciences outfit, has expanded its headcount as it seeks to grow its overseas sales.
City A.M.
London-listed Shire’s shares rise as sales double following its $32 billion takeover of Baxalta last year: Shares in FTSE-100 listed Shire nudged up over two% this afternoon after the pharma group reported a better-than-expected 14% rise in first-quarter earnings.
Bovis Homes share price rises as it cuts production by 10%: Bovis Homes said this morning that it will be cutting production by at least 10% as it tries to avoid a re-run of last year’s customer service scandal.
Aviva faces mounting pressure as analyst backs activist in push to offload asset management arm: The activist investor that masterminded the downfall of Aviva’s Chief Executive in 2012 is calling for the insurance giant’s to ditch its £345 billion asset management arm, which it slammed as “underperforming”.
Barclays ramps up fintech ambitions with the launch of Europe’s largest co-working space for financial technologies in Shoreditch: Barclays is focusing on boosting its fintech credentials with the opening of its flagship innovation site Rise London in Shoreditch, which it says will be Europe’s largest co-working space specifically for financial technologies.
Billionaire investor Bill Ackman lists his £3.5 billion Pershing Square fund in London: Billionaire investor Bill Ackman listed his $4.6 billion (£3.5 billion) Pershing Square Holdings investment fund in London today.