Newspaper Summary
The Times
Big investor lashes out at ‘stitch-up’: One of the City’s biggest investment groups has strongly criticised the stock market regime that is set to allow a small London-listed company to be taken private, leaving furious minority investors lumbered with unlisted and illiquid shares.
Creditors to get less than 2p in the pound after Jaeger collapse: Unsecured creditors to Jaeger are owed close to £50 million with suppliers from all over the world hardest hit after the collapse of the fashion chain.
Accused tycoon strikes defiant note: Vijay Mallya, the Indian drinks baron, claimed that he would provide sufficient evidence to throw out all charges against him as he arrived at a London court to fight attempts to extradite him to face fraud allegations.
House prices immune to Brexit nerves: Growth in house prices picked up steam as the residential property market remained immune from the Brexit slowdown elsewhere in the economy in recent months.
Share values ‘in bigger bubble than 1999’: More investors think shares are overvalued than during the technology bubble in 1999, according to a poll of institutional shareholders.
Near-zero unemployment poses recruitment challenge, says Ashtead: One of the leading plant hire companies in Britain and the U.S. has warned that near-zero unemployment among skilled blue-collar workers is presenting unprecedented recruitment challenges for industrial services companies.
The Independent
London traders dubbed ‘the Cartel’ to be flown to U.S. to face court: Three London-based former traders who dubbed themselves the “Cartel” have agreed not to fight extradition to the U.S. on charges they manipulated the $5.3 trillion-a-day foreign exchange market.
Federal Reserve set to raise interest rates again: The U.S. Federal Reserve is widely expected to raise its benchmark interest rate this week due to a tightening labour market and may also provide more detail on its plans to shrink the mammoth bond portfolio it amassed to nurse the economic recovery.
Payday lender complaints have tripled over the last year, reveals data: Complaints relating to payday lenders have tripled over the past year, according to data published by the financial consumer rights watchdog.
H&M, Zara, M&S and others found buying from highly polluting factories: Global fashion brands including H&M, Zara and Marks & Spencer are buying material produced in factories that devastate peoples’ health in Indonesia, China and India, a new investigation has found.
Carlsberg announces zero carbon pledge inspired by Donald Trump’s rejection of Paris agreement: Carlsberg has pledged to eliminate all carbon emissions from its breweries by 2030, citing Donald Trump’s decision to withdraw the U.S. from the Paris climate agreement as a key motivation.
The Daily Telegraph
Condé Nast cans Style.com to seal deal with Farfetch: Condé Nast, the publisher of Vogue and GQ, is scrapping its ambitious Style.com shopping website in favour of a deal with Farfetch, the online retail platform that is heading towards a $5 billion listing.
VW faces ‘super claim’ over dieselgate as U.K. and Netherlands motorists join forces: Volkswagen is facing its biggest legal challenge in Europe over the “dieselgate” scandal with a U.K. class action against the car maker teaming up with a similar claim in the Netherlands.
Marissa Mayer resigns from Yahoo as iconic internet firm sold to Verizon: Marissa Mayer is leaving Yahoo after five years as Chief Executive, it has finally been confirmed, after Verizon completed its $4.5 billion (£3.5 billion) takeover of the once-mighty internet giant.
Andy Higginson leaves N Brown for private equity: N Brown, the plus-sized and over-50s fashion retailer, has announced that Chairman Andy Higginson is leaving the company to “pursue opportunities in private equity”.
Stanley Gibbons shares bounce back as Disruptive Capital clarifies interest: Shares in stamp dealer Stanley Gibbons bounced back after private equity firm Disruptive Capital restated its interest in a possible takeover.
Spire Healthcare searches for CEO after Chairman steps back: Spire Healthcare has begun its search for a new permanent Boss after announcing Executive Chairman Garry Watts has taken a step back due to ill health.
The Questor Column:
Don’t buy Burford’s fully priced shares, go for the bonds and get a 4.7% yield: Litigation finance is a niche area but a growing one and one company that is actively involved, so far to great effect, is Burford Capital, now the third biggest stock on Aim, the London Stock Exchange’s junior market. Burford funds lawsuits in return for a share of any compensation awarded. The company is also expanding its range by offering lawsuit defences (and taking a share of the money saved), while it can also sell a percentage interest in cases, sometimes for a healthy profit. The shares (to which the numbers in the box refer) have performed brilliantly over the past 18 months, zooming from barely 200p to nearly £10. The timing and amount of any court payments are unpredictable, while in most cases the identity of clients is kept under wraps. The £175 million issue was very successful and the bond, whose ticker is BUR3, pays a 5% coupon and matures in 2026. The price has increased from 100p at listing to around 101.2p, so the “yield to maturity” (in effect, the annualised total return, including the small capital loss at maturity) is around 4.8%. The 6.5% coupon 2022 bonds (BUR1), which trade at 110.5p, offer a yield to maturity of 4.2% and the 6.125% 2024 paper (BUR2) has a yield to maturity of 4.75%. Questor says ‘Buy’.
Update: Carillion: When we first flagged concerns about the stock in March, we noted how the year-end net debt pile of £219 million (a figure that averaged £587 million over the year) and the pension deficit of £663 million meant that interest payments and pension contributions came to £107 million, against an operating profit of £147 million, leaving little margin for operational error. On paper the yield is 9.4% and the price-to-earnings ratio is less than 6 for 2017, but the share price implies that the market still does not believe the numbers. All eyes will now be on the first-half trading statement due on July 11, and then the interims on August 23. Last year’s interim dividend was 5.8p and that will be the benchmark for investors. Questor says ‘Avoid’.
The Guardian
Embattled Uber CEO Travis Kalanick takes indefinite leave of absence: Uber’s CEO, Travis Kalanick, has announced that he will take an indefinite leave of absence as the embattled company released a damning report on its workplace culture that called on the company to “review and reallocate” Kalanick’s responsibilities.
Brussels plan could force euro clearing out of U.K. after Brexit: Brussels has published proposals that could force London’s prized euro-clearing trade out of the City after Brexit, as the EU plans for life without Europe’s biggest financial centre.
EasyJet offers private jet experience at Luton – without the private jet: EasyJet passengers can now travel like billionaires – at least to as far as the steps of the plane – following the launch of a new venture to allow the airline’s customers to use the private jet terminal and facilities at Luton airport.
Britons feel the squeeze as inflation rises to four-year high of 2.9%: U.K. inflation rose to a four-year high in May as the pound’s sharp fall since the Brexit vote worked its way through the economy, intensifying the squeeze on household budgets.
EDF Energy’s Vincent de Rivaz to step down after winning Hinkley battle: The man who helped secure Britain’s first new nuclear power station in a generation will step down as Chief Executive of EDF Energy in October, marking the end of a 15-year tenure.
Daily Mail
Heineken forced to sell pubs in £403 million Punch Taverns takeover after watchdog Expresses concerns: Heineken could be forced to sell pubs as part of a £403million takeover of Punch Taverns after the competitions watchdog expressed concerns. The Competition and Markets Authority claimed the merger, which will see Heineken buy around 1,900 pubs from Punch Taverns, will restrict competition in 33 different areas.
Banks get power to snoop on WhatsApp over fears scrambled messages could be used in dodgy trades: Banks will get fresh powers to snoop on errant traders after a WhatsApp monitoring service was backed by Blackberry.
British tech pioneer snapped up by American buyers after losing battle with Apple and Google: A former darling of Britain’s tech scene is being snapped up by American buyers after losing a battle with Apple and Google.
Ted Baker fights off threat of the online upstarts: Fashion group targets shoppers who want affordable luxury: The fashion group said prioritising quality and not overselling its garments had helped it avoid the pitfalls of its competitors, which have struggled against competition from the likes of Boohoo and Asos.
Insurer Charles Taylor adds Microsoft Boss to board as non-Executive Director: Insurer Charles Taylor has added a Microsoft Boss to its board as Non-Executive Director. Tamer Ozmen runs Microsoft U.K. Services and will also sit on Charles Taylor’s audit, remuneration, and nominations committees.
£36 million payday for bankers as Allied Irish Banks floats in City for up to £11.8 billion: Bankers and lawyers will enjoy another bumper pay day from the biggest City stock market float for two decades – a listing that will also be a major boost for the British economy.
Paul May 57, appointed non-exec Director at Restaurant Group: Frankie & Benny’s owner has appointed the Boss of Patisserie Valerie to its board. Paul May will join Restaurant Group, which also operates Mexican food chain Chiquito, as a non-Executive Director next month.
Daily Express
Repair and renew business slashes damage costs for builders, insurers and householders: Repair and renew is the new replacement says the firm that is tackling damage in a radically different way so disaster-struck householders and businesses are saved a fortune.
America crushes Saudi oil control: Prices fall as U.S. heads for new supply record: Oil prices have continued to tumble as the U.S. takes on Saudi Arabia to become one of the biggest producers in the world.
Political uncertainty and falling pound are worrying for business leaders: The pound kept sliding as concerns over U.K. economic outlook intensified after a collapse in business confidence following the general election.
Eurozone recovery dealt major blow over fears for Germany’s economy - confidence wanes: Confidence in Germany’s economy has tumbled, dashing hopes for a growth boom over the coming year that could pull up the eurozone.
Global credit crunch warning issued on debt bubble as current trends mirror 2008 crash: Warning signals have been felt after a key credit indicator mirrored the same pattern experienced ahead of the financial crisis of 2008, in an eerie sign that the global economy is heading for another downturn.
The Scottish Herald
Cut in VAT urged amid ‘threat’ to economy from surging inflation: Scottish Chambers of Commerce has warned of a “real threat” to the economy from falling consumer spending power and called for a cut in value-added tax, after it emerged annual U.K. inflation had hit 2.9%.
Ticket software start-up aims to raise £400,000 in investment drive: Make It Social, the event ticketing start-up, has revealed plans to raise at least £400,000 from angel investors from home and abroad as it closes in on deals with major customers.
Drilling underlines potential of North Sea find: North Sea-focused Faroe Petroleum has said recent drilling has confirmed a find it made off Norway last year is commercially viable in the current low oil price environment.
Standard Life Boss ‘happy’ to consider annuity book sale: Standard Life Chief Executive Keith Skeoch has revealed he would be “quite happy to dispose” of the Edinburgh financial giant’s annuity book if the deal was right for shareholders.
Chinese technology company Huawei and Edinburgh University launched joint venture for distributed data management: Global technology company Huawei and the University of Edinburgh are to open a new lab for distributed data management and processing, writes Karen Peattie.
Optoscribe continues growth in next-generation photonic components: Optoscribe, a leading supplier of glass-based integrated photonics components, has closed a series B investment round of £1.8 million in line with its expansion and product supply plans.
PR company Beattie ramps up international expansion plans amid political uncertainty: Scottish public relations firm Beattie Group is to accelerate its international expansion plans by strengthening operations in North America.
MBM Veritas concern for RBS compensation claimants as key Scottish MPs lose their seats: Losing two members of the U.K.’s All-Party Parliamentary Group on Fair Business Banking in last week’s General Election is a setback for businesses seeking compensation from Royal Bank of Scotland claims MBM Veritas, the group created to support firms affected by the bank’s GRG restructuring division.
The Scotsman
Highlanders dig in to bring broadband to their rural homes: It is the technology of the future, made possible by some old-fashioned elbow grease. Residents in some of Scotland’s most remote locations are helping to dig trenches in order to enjoy some of the fastest broadband speeds anywhere in the U.K.
Housebuilding in Scotland remains stagnant, industry warns: Housebuilding in Scotland continues to flatline with just 88 more homes built in 2016 than in the previous year, official figures reveal.
Seedrs hails ‘successful’ debut for secondary market: Crowdfunding platform Seedrs, which counts Sir Andy Murray among its backers, has closed the window on its inaugural round of secondary trades.
Iomart to hike dividend by 90% after jump in profits: Web hosting and cloud computing specialist Iomart said shareholders were in line for a 90% increase in their dividend as it reported higher annual earnings.
Grangemouth owner Ineos to expand European facilities: Chemicals giant Ineos has announced plans to increase the capacity of the cracker facility used to break down gases at its Grangemouth site as part of a major European expansion programme.
City A.M.
Faberge owner Gemfields receives approach from China’s Fosun Gold that could outbid shareholder Pallinghurst’s takeover offer: Emerald, ruby and amethyst miner Gemfields has received a takeover approach from China’s Fosun Gold.
MAN, Volvo Group, Daimler, Iveco and DAF facing £3.9 billion court battle with British road hauliers: British road hauliers have obtained no-win-no-fee backing in a £3.9 billion price fixing claim against some of the world’s largest truck manufacturers.
Unite union warns fresh strike action “almost certain” if fresh talks fail in bitter BMW dispute after workers reject pensions offer: Unite union has warned a further bout of strike action at BMW’s U.K. plants over pensions is “almost certain” if fresh talks fail to reach a resolution.
Imperial Brands appoints a non-Executive Director with experience in tobacco alternatives and cannabis: Imperial Brands has strengthened its board with a new non-Executive Director who has experience in what it calls “next generation” products.
Royal Dutch Shell received a huge U.K. tax credit due to North Sea decommissioning costs: Royal Dutch Shell paid over $55.6 billion (£43.7 billion) to governments last year, but in the U.K., it received a tax credit as a result of decommissioning costs, according to a report.