Newspaper Summary
The Times
Facebook profits soar despite fake news row: Concerns about the spread of fake news and a scandal over misreported viewing statistics appear to have done little to lessen advertisers’ love of Facebook, which last night reported soaring revenue in the first quarter that was ahead of expectations.
Chinese airline takes a flyer on Deutsche Bank: A huge Chinese conglomerate that began life as a single airline has become the largest shareholder in Deutsche Bank after doubling its stake in the troubled German lender to just under 10%.
Channel 5 flies flag for rugby on terrestrial TV: Live Premiership Rugby matches will be shown on terrestrial television for the first time after Viacom signed a seven-figure deal.
Roof comes crashing down on Cluttons: It was founded in 1765 and for two and a half centuries helped the well-heeled of London to sell their homes. Cluttons, one of the oldest estate agents in the world, threw in the towel, sunk by a massive pension fund deficit, and submitted to what appeared to be a rescue takeover.
Business tells next government to put jobs and EU trade first: Britain’s leading employers group has attacked Theresa May’s Brexit fall-back strategy to leave the European Union without a deal and called on the next government to prioritise the economy in the upcoming negotiations.
Corporate giants under fire over pay: Two of Britain’s biggest companies face shareholder criticism over their pay for senior Executives.
Direct Line drives up insurance premiums: Direct Line, reporting first-quarter figures, said that it had increased prices since the Justice Secretary’s decision to change the Ogden formula because of the anticipated impact it would have on the cost of claims.
The Independent
Canada produces 66% of its electricity from renewables: Canada produced about 66% of its electricity from renewable sources, according to a new report.
Japanese crisps shortage is reaching ‘crisis point’: A crisp shortage that has been gripping snack-loving Japan is now reaching crisis point, according to local media.
Pound sterling volatile on reports of no deal on Brexit: The pound was volatile in trading on Wednesday amid reports of a troubled start to Brexit divorce negotiations, fresh talk of a possible “no deal” outcome and Theresa May’s extraordinary claims that some in the EU are seeking to unduly influence the U.K. general election.
Grocery sales hit more than three-year high: Grocery sales in the U.K. grew at their fastest rate in more than three years at the beginning of 2017, despite indications that inflation is starting to bite, figures from Kantar Worldpanel show.
JPMorgan confirms hundreds of U.K. jobs to move to EU because of Brexit: JPMorgan will move hundreds of London jobs to Dublin, Frankfurt and Luxembourg in preparation for Brexit, the firm’s head of investment banking said on Tuesday.
Construction activity hits four month high in April: U.K. construction activity rose to a four-month high in April according to the latest survey snapshot of the sector, suggesting a reasonable start to the second quarter of 2017 for builders.
The Daily Telegraph
Ignore €100 billion Brexit bill and focus on trade deal, CBI tells London and EU: Britain and Brussels will both be better off if they stop wrangling over an enormous Brexit divorce bill and instead focus on the real prize - a trade deal to preserve the £600 billion of trade which flows back and forth across the Channel each year.
Facebook approaches 2 billion users: Facebook’s profits have hit one billion dollars a month as the social media giant closes in on a milestone of 2 billion users.
Jaguar Land Rover starts education scheme to counter ‘demonisation’ of diesel: Fears about the “demonisation” of diesel cars after the emissions scandal have forced Jaguar Land Rover to launch an education programme to convince buyers their vehicles are safe.
Oil firm behind Gatwick Gusher pauses South Downs drilling bid: The oil explorer behind the so-called Gatwick Gusher has temporarily dropped its application to drill for oil near the ancient South Downs forest - but has vowed that drilling will still move ahead within two years.
Imperial Brands looks to ramp up new product launches as tobacco volumes fall: Imperial Brands is looking to launch new tobacco-less products this year as it seeks to grasp a greater share of the $6 billion (£4.6 billion) e-vapour market and counter declining cigarette volumes.
Standard Chartered and JP Morgan step up Brexit plans: FTSE 100 banking giant Standard Chartered has picked Frankfurt to become the base of its European operations following Brexit, joining a growing number of lenders that are pushing ahead with plans to move operations out of London.
The Questor Column:
Hold BP, despite the risks to the dividend posed by volatile oil prices: The numbers were slightly better than expected and the company reiterated its growth targets, saying its seven key “upstream” (production) projects were all on track. But, as we pointed out in February, when the group published full-year results, BP requires the crude oil price to be at least $60 a barrel to break even. As the price is currently about $50, investors who hold the shares for the generous dividend – the yield is currently 6.8% – are justified in feeling nervous. The dividend will be truly sustainable only if the company’s cashflow routinely exceeds its costs. Neil Woodford, Britain’s most prominent income investor, warned in March that BP and Shell were maintaining their dividends only by borrowing and selling assets and were in effect “liquidating themselves” in order to sustain the payments to shareholders. It’s true BP expects its break-even price to fall steadily to $35-$40 by 2021. But to some extent, buying the shares seems to be a bet that the oil price remains at least at its current levels and that BP doesn’t end up chasing an ever-receding target. Questor says ‘Hold’.
Update: Kromek: In March, we tipped Kromek, the maker of hi-tech sensors including “dirty bomb” detectors, as a buy at 27p, impressed by the enthusiasm for the stock of Gervais Williams, a fund manager at Miton. He pointed out that the company was on the brink of breaking even and that any increase in sales would feed straight through to the bottom line, as research and development accounted for most of its costs. The shares have risen by 10% since our tip, which followed several months of falls. Mr. Williams said: “Although the share price has recovered to a degree, we are happy to retain our clients’ holdings.” Questor says ‘Buy’.
The Guardian
Lidl on course to surpass Waitrose and enter U.K. supermarket top seven: Lidl is on track to overtake Waitrose to become the U.K.’s seventh-biggest grocer as early as this summer as the discounters benefit from new store openings and shoppers search out bargains amid a return to food price inflation.
ITV Chief Executive Adam Crozier steps down after seven years: ITV’s Chief Executive, Adam Crozier, is stepping down after seven years at the helm of the U.K.’s biggest free-to-air commercial broadcaster.
Hard Brexit would cost us £500 million a year, says oil and gas industry: Brexit would land the oil and gas industry with a half-billion-pound bill if EU exit talks end with the U.K. leaving on World Trade Organisation rules, Theresa May has been warned.
Employment agency Transline loses contract with Asos: Controversial employment agency Transline has lost its contract with Asos as it tries to fend off insolvency.
HMRC steps up inquiry into employment status of Hermes couriers: HM Revenue & Customs has stepped up its investigation into the delivery company Hermes classifiying its couriers as self-employed, while the business has also been hit with an employment rights lawsuit from the GMB trade union.
Daily Mail
U.K.’s biggest tech firm Sage Group Software firm tops FTSE after wooing 1.2 million clients: The U.K.’s biggest technology company, Sage Group, jumped towards the top of the FTSE after revealing software subscriptions rose by nearly 50% in the six months to the end of March.
Mattress company Eve Sleep set to float on London’s AIM market: Mattress company Eve Sleep is set to float on London’s AIM market later this month to raise an estimated £35 million.
£130 million wiped off builder Galliford Try in bridge blunder taken on by former Boss now running Bovis Homes: Nearly £130million was wiped off the value of Galliford Try after the construction giant admitted it would cost more than expected to complete a number of projects.
Lord Mandelson to rake in £100k helping Turkish firm take over cruise ports around the world: Lord Mandelson is set to rake in nearly £100,000 a year by advising a Turkish company that wants to take over cruise ports around the world.
Grand national and U.S. Masters blight strong start to the year for Paddy Power Betfair: Big wins for punters on the Grand National and the U.S. Masters overshadowed a strong start to the year for bookmaker Paddy Power Betfair.
Daily Express
Donald Trump to deregulate U.S. banks in bid to separate consumer and investment arms: Donald Trump is marching ahead with his plans to deregulate U.S. banks, looking back to legislation that helped to turn the economy around during the Great Depression.
8O8 Whisky drums up support with crowdfunding drive: 8O8 Whisky, a grain blended Scotch brand with a big following among clubbers in Britain and the Balearics, is looking to raise £300,000 ahead of international expansion.
Petrol price cut on the way? Strong pound and fall in costs means fuel price ‘must drop’: Cheaper petrol should be offered to drivers after the pound strengthened and wholesale costs have fallen, according to experts.
Folium Optics helps the medicine go down easily with smart SCREEN reminders for patients: Electronic reminders fitted on patients’ medicines, improving care and cutting waste, are set to be the first commercial products from pioneering display expert Folium Optics.
How ‘Bank of Mum and Dad’ can help children buy home without having to hand over cash: Lenders are targeting parents trying to help their children on to the property ladder, with a growing number of mortgages tailored for the market.
Juncker to demand direct supervision of clearing houses as global banks & investors balk: Jean Claude Juncker will announce plans to boot British banks out of European financial markets unless he is allowed to supervise them.
The Scottish Herald
Sainsbury warns on impact of inflation as profits are hit: Sainsbury has warned that non-food sales will be hit by rising inflation and weak wage growth, while underlining that it expects food prices to rise amid sterling weakness following the Brexit vote.
Retail sales more resilient in Scotland in first quarter: Retail sales volumes fell in Scotland in the first quarter at a slower pace than in Great Britain as a whole,
Brexit risks to oil and gas industry highlighted: The North Sea oil and gas industry is heavily reliant on thousands of skilled workers from European Union countries a report has found, prompting calls for the Government to ensure the free flow of labour after Brexit.
Souter Investments backs takeover of Aberdeen oil services firm: Oil services firm TWMA has been acquired by a group of investors that includes the family investment vehicle of transport tycoon Brian Souter and Aberdeen Asset Management amid challenging times for the industry.
Tenants and landlords should consider Brexit in rent reviews: Scotland’s Tenant Farming Commissioner, Bob McIntosh, is calling on landlords and tenants of agricultural holdings to carefully consider the impact of Brexit where a rent review is due.
Buzzworks to create 60 jobs with opening of first east of Scotland venue: bar and restaurant group Buzzworks Holdings has made its first move into the east of Scotland, taking on a South Queensferry venue that is part of the redevelopment of the town’s Port Edgar Marina.
Aggreko downgrade wipes £109 million off value: Glasgow-based temporary power provider Aggreko saw £109 million wiped off its value at the start of trading after U.S. bank Morgan Stanley downgraded the company overnight.
CST Global sold to Sivers IMA: Blantyre technology business Compound Semiconductor Technologies (CST) Global, which makes lasers for the telecommunications industry, has been acquired by Swedish firm Sivers IMA.
QikServe goes Dutch with order for international expansion: Qikserve, the mobile order and payment business, has reported that the installation of its platform at a restaurant in Amsterdam’s Schiphol Airport has transformed its ordering process.
The Scotsman
Wetherspoon Founder Tim Martin blasts CBI over Brexit: Tim Martin, the pro-Brexit Founder of pubs operator JD Wetherspoon, has taken a sideswipe at the CBI’s stance that leaving the EU without a trade deal would be dangerous.
Diesel car scrappage scheme expected for pollution hotspots: Drivers in air pollution hotspots will be offered cash to trade in or modify their diesel cars and vans to cut emissions, it was reported.
Fit-out firm Sharkey on a high with project wins: Sharkey, the Edinburgh-headquartered construction services group, is on track for a solid performance in 2017 having already secured more than £50 million of new project activity since the start of the year.
U.K. factory output hits highest level in three years: The economy has been given as boost after it emerged that Britain’s manufacturing sector had hit a three-year high.
Quarter of first-time buyers relying more on parental help: Parental support to help young people to move onto the property ladder is set to play in a part in a quarter of all property transactions in 2017, according to a new report. The “bank of mum and dad” will lend more than £6.5 billion over the course of the year - up £1.5 billion from 2016.
City A.M.
Ian McCaig, Chief Executive of First Utility, is stepping down for “personal reasons”: The Boss of the U.K.’s largest energy challenger, First Utility, is leaving the business after six years.
BMW employees ramp up strikes in row over “pensions robbery” with Rolls-Royce workers joining the walkouts this week: BMW workers have walked out again in the third of eight strikes over a bitter pensions dispute with the German car giant.
Kraft Heinz runs out of beans as sales stagnate in “slow start to the year” sending shares dipping: U.S. food giant Kraft Heinz reported lower than expected quarterly profit and sales, noting a “slow start to the year”.
The U.S. Federal Reserve has left rates unchanged at its May meeting as expectation builds for June hike: The Federal Reserve has voted not to raise its key interest rate, following hikes in December and March.
Activist hedge fund TCI ups the pressure on Safran to ditch its huge €8.5 billion Zodiac deal: Activist hedge fund TCI Fund Management is increasing its pressure on French aircraft engine maker Safran to ditch its plans to buy aeroplane seat maker Zodiac in a €8.5 billion (£6.6 billion) deal.
Healthcare firm Circle Holdings to delist from London Stock Exchange after Toscafund takeover: Healthcare company Circle Holdings is to delist from the London Stock Exchange next month when it is taken over by Toscafund.