Newspaper Summary
The Times
Digital advances boost numbers at News Corp: An influx of digital subscribers to The Wall Street Journal helped News Corp to beat analysts’ expectations with its third-quarter results last night. The Journal added 118,000 digital subscribers in the first three months of the year, bringing its total to nearly 1.2 million.
Merger confirms towering ambition of insurance broker: Towergate will merge with four other insurance businesses to boost its size as Britain’s largest independent broker.
Internal inquiries ‘may lack legal privilege’: Companies that conduct internal investigations to root out corruption could be forced to assist prosecutors because such inquiries are not necessarily legally privileged.
Pressure grows on insurers to make switch in approach: Moneysupermarket, the price comparison website, urged regulators to prevent insurers demanding that policyholders call them and go through several steps to stop policies rolling over from one year to another.
German order to limit losses is win, claim spread-betters: The London-listed CMC Markets, IG Group and Plus 500 have welcomed an order by the German market regulator that spread-betting companies must ensure that their customers cannot lose more money than is in their trading accounts as a condition of ending its investigation into the industry.
Bank ‘may be forced to abort rate increases’: Raising interest rates could have such a destabilising impact on Britain’s housing market that the Bank of England would have to abort the policy, a former Bank official has warned.
Matthews last to go as Mitie cleans up: The last of the triumvirate that oversaw the rise and fall of Mitie is to leave the company. The cleaning group is placing its faith, instead, in two self-made northern businessmen with a reputation for plain-speaking.
Weak euro lifts German economy to new heights: German exports and imports hit record highs in March, fuelling claims that Europe’s economic powerhouse is benefiting from a relatively weak euro.
The Independent
O2 to scrap mobile roaming charges in 47 foreign countries this summer: Customers of mobile operator O2 will be able to use their phones abroad without fear of racking up huge bills this summer after the company announced it will scrap roaming charges.
GDP growth to slow in 2017 forecasts Niesr: The U.K. economy will slow down in 2017 as the British consumer flags in the face of higher inflation due to the slump in the pound since last year’s Brexit vote, according to the latest quarterly forecast from a leading think tank.
U.K. exporters see few positives from Brexit-battered pound: With 85 percent of its customers outside Britain, Sheffield-based Gripple should be cheering the plunge in sterling since last year’s vote to leave the EU, which means every overseas sale brings in more pounds than before.
Trump’s review of Wall Street rules is set to ‘be done in stages’: The U.S. government’s review of a landmark 2010 financial reform law will not be complete by early June as originally targeted, and officials will now report findings piece-by-piece, with priority given to banking regulations, sources familiar with the matter said on Monday.
U.K. insurer Hiscox to set up new EU unit in Luxembourg due to Brexit: U.K. insurer Hiscox has announced it will set up a new European subsidiary in Luxembourg as it prepares for life after Brexit.
Energy shares are sliding after May confirms plans price cap plans: Shares in energy companies Centrica, SSE and National Grid fell sharply a day after Theresa May confirmed that the Conservative manifesto will include plans for price controls on energy bills.
Wall Street’s VIX ‘fear index’ falls to lowest level since 1993: The most widely monitored ‘fear gauge’ on Wall Street has fallen to its lowest level since 1993, helped by one of the strongest corporate earnings seasons in years, geopolitical risks around North Korea cooling off, and Emmanuel Macron’s French Presidential victory removing a possible source of upset across Europe.
The Daily Telegraph
John Lewis profits take £36 million hit after breaching minimum wage rules: John Lewis Partnership has been forced to restate its profits for last year to the tune of £36 million after admitting that it has breached minimum wage rules.
Elliott Advisors launches legal bid in battle to oust Akzo Nobel Chairman: Activist investor Elliott Advisors has begun legal proceedings to oust the Chairman of Akzo Nobel over its continued resistance to a takeover bid from U.S. rival PPG Industries.
Powerful asset manager Hermes calls for ‘no confidence’ vote in Volkswagen Bosses: Asset management giant Hermes has cranked up the pressure on Volkswagen to reveal the findings of an external investigation into the “dieselgate” scandal.
Britain’s fastest-growing businesses are sprinting ahead: Britain’s fastest-growing companies are getting bigger faster, with the pace of expansion accelerating to 70%, up from an average of 50% a year ago.
Whitbread Boss Alison Brittain named businesswoman of the year at Veuve Clicquot awards: The Chief Executive of Costa Coffee-owner Whitbread has been named this year’s Businesswoman of the Year at the annual Veuve Clicquot awards.
Former Lloyds Bosses to face October court date over shareholder HBOS lawsuit: The former Chief Executive and Chairman of Lloyds Banking Group are due to take to the witness box in the autumn when the lender goes to court in a £400 million legal battle with shareholders over its ill-fated rescue of HBOS.
Boost investment or miss chance to make the most of Brexit, Government urged: Investment has to rise to boost the economy, raise productivity and capitalise on the export opportunities given by the Brexit vote, economists have told politicians ahead of the general election.
Bad jobs harm growth and make people miserable says employment tsar Matthew Taylor: Low quality, unproductive jobs trap workers in low pay and harm the rest of the economy, a top economist has warned.
The Questor Column:
Buy a ticket to Cineworld for its decent growth and dividend prospects: Although sceptics worry about competition from online services such as Netflix and its sensitivity to the broader economy, Cineworld offers investors a reliably progressive earnings and dividend profile. Short-term profits can be helped or hindered by film release schedules as well as consumer confidence. In the case of the former, new blockbusters from franchises such as Star Wars, Fast & Furious, Despicable Me and Guardians of the Galaxy, plus an update of the cult 1980s science fiction classic Blade Runner, mean 2017 looks full of potential. Cineworld is also in the middle of a substantial refurbishment programme in Britain as it rolls out Imax and 4DX screens, while the FTSE 250 firm has almost as many venues and screens spread across Bulgaria, the Czech Republic, Hungary, Israel and Romania as it does in the British Isles. Multiplex penetration in these countries is lower than in the U.K. and growth prospects look superior as a result. Cineworld has relatively little debt – interest cover is more than six times and the gearing (net debt to equity) ratio is just 43%. Ideally dividend cover would be a little higher than 1.8 times (and the payout has been cut before) and the forward price-to-earnings ratio of nearly 19 represents a premium to the wider market but a near-3% yield is an additional sweetener at a firm that looks capable of rewarding long-term support. Questor says ‘Buy’.
Update: Pearson: A stunning rebound in its share price after last Friday’s first-quarter trading statement means Pearson has regained all the ground lost since our cautionary analysis in December and January’s subsequent crunching profit warning. Yet this looks like a major squeeze on “short sellers”, known to include a number of hedge funds, who may be dashing for cover, and the challenges that face Pearson have not gone away. The absence of any further profit shocks with the update is also helping sentiment, especially as the Chief Executive, John Fallon, was able to stick to his (previously downgraded) full-year profit guidance and reaffirm plans to sell a 47% stake in publisher Penguin-Random House, or at least extract a dividend from it, and to restructure its U.S. school publishing operations. However, sales were flattered by phasing issues and currency movements while the new plans focus on a unit that accounts for barely 10% of group sales. Investors should treat the share price rally with caution and keep clear. Questor says ‘Avoid’.
The Guardian
Tory MPs plot to water down Theresa May’s energy price cap pledge: Theresa May will face a battle within her own party as well as with the energy companies if she decides to go ahead with a cap on gas and electricity prices.
Co-op Bank investors braced for losses as it tries to raise £750 million: Bondholders in the Co-operative Bank are braced to take losses as the troubled lender scrambles to find £750 million to boost its financial strength.
Uber should lose its licence if it doesn’t improve workers’ rights, say drivers: A group of minicab drivers, many employed by Uber, have joined black-cab drivers and unions in calling for improved workers’ rights to be a condition of Uber being able to renew its London licence later this month.
U.K. firms struggle to find employees – even before Brexit bites: Employers in the U.K. are struggling to fill vacancies after the sharpest drop for more than a year in the number of available candidates, according to a report that points to more recruitment difficulties ahead once Brexit bites.
Amazon moves into U.K. live music starting with Blondie London gig: Amazon is moving into the live music business in the U.K., running and promoting its own gigs starting with Blondie later this month.
U.K. pay growth outlook is among gloomiest in OECD, says TUC: The prospects for pay growth in the U.K. are among the gloomiest in advanced economies, with only Greece, Italy and Austria forecast to suffer bigger falls in real wages by the end of 2018, according to a TUC analysis.
Standard Life and Aberdeen merger likely to mean 10% job losses: Standard Life and Aberdeen Asset Management expect to cut 800 jobs, nearly 10% of the firms’ total workforce, within three years of their looming merger, Standard Life said after announcing on Tuesday that the combined group will be named Standard Life Aberdeen.
Daily Mail
Police radio maker Sepura rises 40% after Government gives green-light to its takeover by Chinese state-backed tech firm Hytera: Walkie-Talkie maker Sepura shot up nearly 40% after the Government gave the green-light to its takeover by Chinese state-backed tech firm Hytera.
£100 million fees bonanza for bankers in £11 billion Standard Life and Aberdeen Asset Management merger: The £11 billion merger of Standard Life and Aberdeen Asset Management has triggered a fees bonanza of nearly £100 million for bankers, lawyers and other advisers.
Atomic clock to keep tabs on the flash boys in crackdown on hackers and high-frequency traders: U.S. firm Intercontinental Exchange has signed a deal with Britain’s National Physical Laboratory for timings which are accurate to one second every 158 million years.
Fire sale knocks £500 million off Britain’s biggest tech giant after sales slump at £7 billion takeover target HP: A fire sale of shares saw more than £500 million wiped off Britain’s biggest listed tech firm after it revealed a slump in sales at the software business it is buying for £7 billion from U.S. giant HP.
Daily Express
Rock bottom interest rates destroy pension pots as £10 million forced to delay retirement past 65: Retirement is increasingly a thing of the past as record numbers now expect to work beyond age 65. The savings crisis is forcing an incredible 10 million Britons to delay their retirement as rock bottom interest rates destroy their pension pots.
William Hill on way to ending losing streak after online betting boost: William Hill raised hopes of ending its losing streak after an online betting boost.
P2i ramps up its waterproofing offer to smartphone makers after sealing £10 million bank deal: Waterproofing technology firm P2i has sealed a £10 million investment deal with Clydesdale and Yorkshire Bank to further its ambitions with Far East smartphone manufacturers.
Funeral and cremation fees are rising at inflation-busting rates: The cost of dying is greater than ever as funeral and cremation fees spiral at an inflation-busting rate.
House price news: Values fall for first time since 2012: House prices have fallen on a quarterly basis for the first time in almost five years, as buyers’ affordability is pushed to the brink.
The Scottish Herald
Digital match for public sector: The Scottish Government has launched an accelerator programme to match up tech start-ups and SMEs with public sector organisations looking to create digital solutions for “civil challenges”.
Shell and BP under fire on boardroom pay policies: Campaigning group ShareAction has called on shareholders in Royal Dutch Shell and BP to vote down the oil and gas giants’ boardroom pay policies, which it says reward environmentally risky high-carbon strategies.
Small firms demand say in £5 billion City Deal spend: Small firms have demanded that prominent business figures are appointed to advisory roles within council areas to ensure multi-billion-pound City Deal funding delivers for local economies.
Overseas oil giants show faith in potential of North Sea: The Head of the Repsol Sinopec business in the North Sea, Bill Dunnett, has underlined the foreign-owned company’s commitment to the area where it can make plenty of money with oil trading at around $50 per barrel.
Neilston set for £2 million boost thanks to windfarm sale: The East Renfrewshire village of Neilston is poised to benefit from up to £2 million of investment in jobs, local facilities and services after the sale of a community-backed windfarm.
Loganair expects bumper summer: Loganair has cited the effect of sterling’s weakness since the Brexit vote on demand for international travel as it revealed this summer was shaping up to be a bumper season for the airline.
Aberdeen drug firm signs deal with big player: Elasmogen, a drug development business spun out of the University of Aberdeen and global biopharma group Amgen have signed a research agreement with Canada’s Feldan Therapeutics.
The Scotsman
RBS set to cut and outsource tech jobs: Royal Bank of Scotland (RBS) is to cut its technology workforce with a net reduction of 92 jobs as part of its plans to be a “simpler, smaller” bank.
Sales drive ahead at Glasgow packaging firm Macfarlane: Macfarlane, the packaging and distribution specialist, has reported a rise in sales following a string of recent acquisitions and rising demand from online retailers.
Edinburgh tech firm Sensewhere expands mobile ads: A software spin-out from the University of Edinburgh that helps firms target shoppers with “location-aware” adverts has unveiled the latest iteration of its technology.
Goals hails ‘encouraging progress’ in five-a-side growth: Five-a-side football operator Goals Soccer Centres said work on its third site in the U.S. will begin next month as it reported “encouraging progress” in its sales recovery.
KPMG boosts Aberdeen team as oil sector fortunes rebound: KPMG has made a trio of new appointments to bolster its oil and gas industry expertise amid “increasingly positive signs of an upturn” in the sector.
Immigration system ‘must be flexible’ to assist firms: The future immigration system must be agile enough to adapt to evolving labour market needs and help British business flourish, according to a new study.
City A.M.
Shareholders should get more power over Executive bonuses, according to the Institute of Directors: Investors could be given more power to reject Bosses bonus packages under the latest proposals from the Institute of Directors.
Savills sounds unsettled by the U.K. General Election: Savills has warned that the U.K. General Election will hit the housing market over the next few weeks, with transactions set to fall.
Kerry Group’s outgoing Chief Executive Stan McCarthy spreads his wings and joins Ryanair: Stan McCarthy, who has been the Boss of the Tralee-based Kerry Group for the past 10 years, will join the Irish airline’s board as a non-Executive Director. He will stand down as Chief Executive of Kerry Group at the end of September.
Ukog share price plummets 16% as it confirms it’s meeting with potential new investors: U.K. Oil & Gas Investments (Ukog) responded to media speculation that it is meeting with new investors.
Gear4music hits all the right notes as annual sales and profits boom on international growth: The U.K.’s largest online musical instrument retailer struck a chord with international markets over the year as it revealed revenue and profits soared.