Newspaper Summary
The Times
OECD: U.K. must borrow more to cope with Brexit slowdown: A leading global economic think tank dealt the Conservatives a double blow on the eve of the election by warning that growth is slowing and endorsing opposition plans for debt-fuelled spending.
Oil prices slide as more crude pours into the market: A surprise jump in crude stockpiles in the United States sent the price of oil down by more than 4% amid fears that diplomatic tension in the Middle East could hamper Opec’s agreement to cut production.
Punitive car taxes hit Land Rover sales: Sales at the larger, more profitable end of Jaguar Land Rover’s range have gone into reverse after being hit by new punitive car tax rates on gas-guzzlers.
Miners return to major profits and repay debts: The world’s largest mining companies slashed investment in expansion to record lows last year as they swung back to profit and paid down debts.
QE is harming the economy, warns Cameron Minister: Baroness Altmann, pensions Minister under David Cameron, said that the emergency policy pursued by the Bank of England and other central banks in the financial crisis may have become “a significant danger” nearly a decade after it was launched.
French join the search for oil off Irish coast: Total has thrown its weight behind the search for oil off the coast of Ireland, buying a $27 million option on a prospect about to be drilled by Tony O’Reilly Jr’s Providence Resources.
The Independent
May will fail to deliver Brexit trade deal, OECD predicts: Theresa May will fail to secure a comprehensive free trade agreement with the rest of the EU by 2019 in a development that would mean a destructive “cliff-edge” Brexit for the U.K., the Organisation for Economic Co-operation and Development (OECD) has predicted.
World adds record amount of renewable energy as prices plummet: The world added enough renewable energy capacity to power every house in the U.K., Germany, France and Italy combined last year, according to a new report. The record figure of 161 gigawatts cost about £187 billion, but this was a staggering 23% cheaper than it would have cost in the previous year.
House price growth weakest in four years in May says Halifax: House prices continued to weaken in May, according to the latest data from Halifax.
Pound could plummet if general election delivers hung parliament: The pound could plunge to as low as $1.20 on Friday, a level last seen in January, should the U.K. election lead to a hung parliament, according to a Bloomberg poll of analysts.
Trump set to allow drilling for oil off U.S. east coast for first time: The Trump administration is paving the way for drilling for oil to start off the U.S. east coast for the first time, environmentalists have warned.
One third of small businesses want new government that will reverse decision to leave EU: One third of small businesses want new government that will reverse decision to leave EU
The Daily Telegraph
Berendsen agrees to £2.2 billion takeover by French rival Elis: Berendsen has succumbed to a takeover proposal from French rival Elis, after the offer was raised for a second time to £2.2 billion, in spite of earlier comments made by the British laundry giant’s board that there had been no “basis for any further discussions”.
easyProperty to merge with estate agency group in £60 million deal: Online estate agency easyProperty is on the cusp of a merger with the firm behind The Guild of Property Professionals in a bid to seize market share from both online and more traditional agencies.
Shares in RPC tumble as investors spot ‘red flags’: Shares in RPC dropped more than 11% on Wednesday, despite the packaging company reporting that its annual profit had more than doubled.
AstraZeneca banks up to £230 million on Zomig migraine drugs deal: Pharmaceuticals giant AstraZeneca has struck a deal worth up to $302 million (£234 million) to sell the rights to its migraine drug Zomig to a family-owned German company.
Dong Energy plugs offshore wind farm into world-first battery system: Offshore wind giant Dong Energy has become the first to plug an offshore wind farm into a battery system to store power to be used as needed.
Fat chance of delaying markets reform, EU watchdog tells City: The European markets watchdog has warned the City that a blanket change on trading rules will come into force no later than January, dashing any hopes it could be delayed as the City scrambles to prepare.
The Questor Column:
Hold on to Greggs for its growth and resilience in uncertain times: Investec uses a mixture of funds and individual shares in its clients’ portfolios and among the latter it currently holds Greggs, the fast food chain famous for its sausage rolls. Ms. Bayer said the firm was benefiting from a refurbishment programme and attempts to tap into the growing trend towards takeaway breakfasts. She accepted that Greggs was affected by the rise in the minimum wage and that most companies in the sector were highlighting possible uncertainty in the second part of the year. But she added: “Takeaway food and rolls seem pretty resilient – consumers are prepared to pay for what they want. This is a good stock to hold in the food retail sector.” The shares are also held in the Standard Life U.K. Smaller Companies fund, and the investment trust of the same name, which are run by the highly-regarded Harry Nimmo. Questor tipped the shares as a long-term hold last year when they were trading on a price to earnings ratio of 18. The rating is now 17.6 and we are happy to reiterate that view. Questor says Hold’.
Update: Kromek: Readers who followed our advice to buy shares in Kromek, the supplier of advanced radiation detectors, in March at 27p and saw them gain 26% to 34p over the next few days may be wondering why they have fallen back below the price at which we tipped them. We reiterated our buy stance at 29.75p last month. But far from signalling problems at the company, the share price fall offers another opportunity to buy into this unusual firm – which is based in County Durham but whose customers include the U.S. government – at an attractive price. Gervais Williams of Miton, who holds Kromek in several of his portfolios, said nothing had changed at the company and that the current share price weakness reflected a “buyers’ strike” in the market for smaller and medium-sized stocks, partly as a result of pre-election nervousness. He said share prices often jumped when investors became enthusiastic about a stock, only to lose steam when there were no immediate announcements to confirm the story. Questor says ‘Buy’.
The Guardian
Sir Philip Green’s retail empire reels from BHS closure and Topshop fall: Sir Philip Green’s retail empire suffered a worse than expected 79% fall in profits last year as it reeled from the closure of BHS and a tough fashion market, during which Topshop’s U.K. sales fell for the first time in more than a decade.
U.S. oil firm Halliburton branded ‘obscene’ over unpaid U.K. internships: Oil industry company Halliburton has been branded “obscene” for advertising unpaid U.K. internships, which critics say give an unfair advantage to people from privileged backgrounds.
OECD: outlook for global economy is ‘better, but not good enough’: Rising inflation and weak wage growth will leave Britain rooted to the bottom of the league table for living standards among the west’s richest countries in 2018, the Organisation for Economic Co-operation and Development has warned.
Santander and RBS haunted by ghost of crisis past: The shadow of the 2008 financial crisis loomed over the banking sector again on Wednesday when a Spanish lender was rescued from collapse by Santander and Royal Bank of Scotland racked up a £1 billion bill to end a legal battle sparked by the bailouts by U.K. taxpayers nearly a decade ago.
More than a fifth of WPP investors reject Sorrell’s £48 million pay package: More than a fifth of WPP investors have voted against Sir Martin Sorrell’s £48 million pay package, as the Chief Executive and his board faced a barrage of questions at the annual meeting over who will take over as head of the world’s largest advertising group.
Daily Mail
Online fashion upstart Boohoo seeking £50 million from investors to fund mega-warehouse: Online upstart Boohoo is seeking £50 million from investors to fund a blockbuster warehouse as stellar growth continues. The company wants to build a £150 million store to expand its business.
New Chief of FTSE mining giant Anglo American entangled in tech firm scandal: The new Chairman of a FTSE mining giant was embroiled in a tech company that has collapsed amid a scandal. Stuart Chambers, one of the City’s biggest names, was appointed to take on the top job at Anglo American.
Tesco Boss paid £4.1 million is given £142k to move 30 minutes from grocer’s Hertfordshire head office: Tesco Boss Dave Lewis, 52, was handed the bumper benefits package to cover stamp duty and legal fees to move from London closer to the Hertfordshire head office.
Protests at court as row between RBS and investors is abandoned, letting Fred ‘the shred’ off the hook: A courtroom battle between Royal Bank of Scotland and disgruntled investors was abandoned – allowing disgraced ex-Boss Fred ‘the shred’ Goodwin to avoid giving evidence.
Uranium miner Berkeley Energia appoints former Rio Tinto Executive Nigel Jones as a non-Executive Director: Uranium miner Berkeley Energia has appointed former Rio Tinto Executive Nigel Jones as a non-Executive Director. The 51-year-old is replacing retiring Dr Jim Ross in the Spanish-focused business.
Daily Express
Greek debt timebomb: Athens could beg EU lenders to avert deadlock if talks break down: Greece could ask European lenders to intervene and avert the deadlock on the country’s debt crisis if talks break down next week.
EU crisis: Euro sinks as European Central Bank set to admit its policies are failing: The euro has tumbled amid expectations the European Central Bank will be forced to admit its policies are still failing to produce satisfactory results in Europe’s economy.
Why Donald Trumps tax policies on expats will be huge boost for Britain: Britain’s economy is set to reap a £26million injection thanks to Donald Trump’s tax policies, expert analysis has showed.
Spain’s hemorrhaging Banco Popular bought by Santander for €1: Banking heavyweight Santander has agreed to buy toxic lender Banco Popular for just €1, saving the giant from total collapse.
Labour’s garden tax will see house prices crash: House prices will crumble under Labour’s plan to hit British households with a ‘garden tax’, architects of the plan have bragged.
The Scottish Herald
Edinburgh aparthotel set to open after investment: A 72-studio aparthotel in central Edinburgh is on track to open early next month, following an investment of “tens of millions of pounds”.
Cairn underlines belief in oil and gas potential of Ireland: Cairn Energy has underlined its confidence in the potential to make big finds in the frontier waters off Ireland as one of the industry’s big guns appeared to back its judgement.
Global challenges fail to dampen confidence of Standard Life trust: The £567 million Standard Life Private Equity Trust has expressed confidence about the prospects for further gains from its portfolio, in spite of a “challenging global political and macroeconomic environment”.
Eland to raise funds after annual losses triple: Eland Oil & Gas has announced plans to raise up to $19.5 million (£15.1 million) from investors a day after the Nigeria-focused firm disclosed that losses tripled last year amid security challenges in the country.
O’Toole sells FirstGroup stock as incentive plan vests: FirstGroup Chief Executive Tim O’Toole has sold nearly half of the shares vested under his 2014 LTIP (long-term investment plan) to cover tax liabilities, writes Scott Wright.
Frame PR unit hails the impact of senior additions: The public relations arm of Frame, the Glasgow-based creative agency, has unveiled a raft of high-profile client wins, declaring its expansion reflects its decision to take expand its senior team.
Barnetts reports solid trading: Barnetts Motor Group, the St Andrews-based car dealer, said turnover had not dropped as much as expected last year.
Award-winning Eriska resort expands self-catering business: Isle of Eriska, the five-star hotel and spa resort located on its own 300-acre private island off the west coast near Oban, has expanded its Hilltop Reserves self-catering holiday business after building an additional four top-end lodges.
Wood Group wins contract with BAE Systems for Royal Navy submarines: Wood Group has secured a two-year industrial services contract from BAE Systems Submarines to provide insulation installation services to the U.K. Royal Navy’s Astute class submarines based in Barrow-in-Furness as it moves to become less reliant on its traditional oil and gas business.
The Scotsman
U.K. economy to slow amid Brexit and spending squeeze: The U.K. economy will slow in the coming years as Brexit uncertainty hampers growth and consumers endure a spending squeeze caused by higher prices and lower wages, according to the Organisation for Economic Co-operation & Development (OECD).
Fintech companies being powered by global money sources says dealmaker: Quest Corporate, the Edinburgh-based boutique corporate finance advisory firm, celebrated a stellar 2016 rounded off by one of the year’s largest fintech deals.
Software outfit Ideagen plans East Kilbride jobs boost: Software developer Ideagen has unveiled plans to create more than 50 jobs, including about 20 in East Kilbride.
SwarmOnline makes its mark in the fintech field: After six years of behind-the-scenes preparation, Glasgow-based mobile and web technology company SwarmOnline was launched in 2011 from the living room of Founder and managing Director Andrew Duncan.
Scotgold seals jewellery deal for first Cononish gold: The company developing Scotland’s first commercial gold mine has struck a deal to supply two jewellery manufacturers with precious metal from its Cononish site.
City A.M.
S&P has become the first ratings agency to downgrade Qatar amid intense diplomatic row: Standard & Poor (S&P) has become the first ratings agency to downgrade Qatar’s credit rating following the diplomatic rift caused by the decision of Saudi Arabia, the United Arab Emirates, Egypt and Bahrain to cut ties with Qatar.
Singapore Airlines Boss Goh Choon Phong takes over from IAG Chief Executive Willie Walsh as IATA Chairman: Singapore Airlines’ Chief Executive has taken over from IAG Boss Willie Walsh as Chairman of the International Air Transport Association (IATA), which represents some 275 airlines across the globe.
London’s tourism industry should hold up well in the face of terror attacks according to the Boss of the mayor’s promotional agency: The Chief Executive of London & Partners, the mayor’s promotional agency, believes the capital’s tourism industry is resilient enough to withstand the shock of recent terror attacks.
Shoe Zone’s shares hit as profits plunge: Shoe Zone’s share price was on the back foot after the budget retailer announced a hit to its profits.
Hyundai’s U.S. sales Chief is the second top U.S. exec to leave the company amid a sales slump: The U.S. sales Chief of Hyundai Motor has resigned, marking the second departure of a top U.S. Executive in the past six months amid falling sales.