Newspaper Summary
The Times
Software hold-up leaves businesses waiting in vain for rates relief: Hundreds of millions of pounds of relief promised to companies hit by rises in business rates is not reaching them because councils are waiting for months at a time for software to be updated.
Paris will pull out stops to woo jobs: The HSBC has said that France’s plans to loosen its employment rules make relocating there more attractive.
First Group facing competition inquiry: About half a million rail passengers could face higher fares after a decision to award one of Britain’s biggest franchises to First Group, the competition watchdog has claimed.
Snap judgment as shares fall: The investment bank that led Snap’s stock market debut has taken the unusual step of cutting its price forecast for the company’s shares to less than the amount at which they were offered to investors before the float.
Law firm sets sights on float with £20 million takeover deal: One of London’s fastest-growing law firms is set to list on the Alternative Investment Market after announcing a £20 million reverse takeover.
Trump picks hawk for Wall Street post: President Trump has selected a financial regulation hawk to serve as the top Wall Street supervisor at the Federal Reserve.
Number of wealthy renting expensive properties in London is rising, says Knight Frank: The number of wealthy people choosing to rent some of the most expensive properties in London is rising because of uncertainty about buying a house in the present economic and political environment, Knight Frank said.
Scottishpower picks Glasgow as global headquarters for offshore wind: Glasgow is to be Scottish Power’s headquarters for offshore wind. The energy company’s new building in St Vincent Street, the largest single-use office to be built in the Scottish city for 25 years, will house specialists working on U.K. projects, as well as in the United States, Germany and France.
The Independent
Societe Generale planning to move up to 400 banking jobs from London to Paris: French bank Societe Generale could move 400 banking jobs from London to Paris as a result of Brexit, Chief Executive Frederic Oudea has said.
Unions slam gig economy report for ‘spectacular failure’ to deliver on promises: Trade unions have slammed a review into the gig economy and changing working practices across the U.K. Unite, the country’s largest union said Tueasday’s report “spectacularly failed to deliver” on its promise to tackle the problem of insecure work, while the GMB described it as a “disappointing missed opportunity”.
Chinese sharing startup quickly loses 300,000 umbrellas: A Chinese umbrella sharing startup has taken a hit after most of its 300,000 umbrellas went missing within months of launching.
Using Uber taxis is ‘not morally acceptable’, says Labour shadow business secretary: Using Uber is not morally acceptable, a senior Labour shadow cabinet figure has said as Prime Minister Theresa May makes a keynote address on workers’ rights.
U.K. workers are 27% less productive than German counterparts, say British business leaders: The U.K.’s productivity is so poor that the average German worker could go home early on Thursday afternoon and still have produced as much as the average Brit who toiled all the way through Friday.
Amazon gains approval to stock and sell groceries in India: Online retail giant Amazon has secured approval to stock and sell food and groceries in India, potentially expanding its business in the fast-growing economy where it is in a pitched battle with home-grown rival Flipkart.
Burberry and Carlsberg join companies committed to 100% renewable energy by 2022: AXA and Burberry are joining an array of companies committing to going green.
Facebook’s Oculus cuts price of virtual reality gear to match Sony: Oculus, the virtual reality company owned by Facebook, is temporarily cutting the price of its hardware, as the industry tries to figure out why the technology for immersive games and stories has not taken off among consumers.
The Daily Telegraph
Protect EU trade and financial services to safeguard economy, Bank of England official warns: The Government must protect the City in Brexit negotiations and keep EU trade links open if it is to safeguard growth and maintain U.K. living standards, a top Bank of England official has signalled.
The end of cash? Cards now account for more than half of retail purchases, BRC finds: The prospect of a cashless society moved a step closer after cards were used for more than half of retail purchases in the U.K. for the first-time last year and debit cards finally surpassed physical money to become the most popular payment method.
Twitter names former Goldman Sachs exec as new Chief financial officer: Twitter has hired a former Goldman Sachs Executive as its new Chief financial officer, citing his “track record of driving profitable growth”.
Britain’s 5G mobile broadband plans under threat as Three signals High Court action over auction rules: One of the world’s richest men urged the Prime Minister to intervene to tilt a forthcoming auction of mobile airwaves in favour of his operator, Three, The Daily Telegraph can reveal.
Sunseeking drinkers give a sales bump to Young’s: June’s hot weather has helped south-east focused pub group Young’s, with its garden and river-based pubs proving popular with sunseeking drinkers.
British business leaders throw weight behind plan to raise living standards: Business leaders across Britain have joined forces with the Bank of England and the Government to relaunch an initiative designed to raise living standards and give the U.K. economy a £130 billion boost.
The Questor Column:
Developer Gleeson homes in on some robust profit growth for the future: A very solid trading update and a new target for housing completions suggest the investment case is very much intact at MJ Gleeson. Last week’s statement from Chief Executive Jolyon Harrison revealed that Gleeson had sold 1,013 homes in the year to June, reaching a target set some years ago. Backed by activity on 59 sites and a land bank of some 11,588 plots, Harrison and his team are targeting annual sales of 2,000 homes within five years. If met as efficiently and punctually as the prior target this would underpin forecasts for robust profit growth in the future, especially as its Strategic Land operation continues to prepare land for residential building and then sell on the assets. The land bank here covers more than 21,500 plots. Based on consensus analysts’ forecasts, the stock trades at nearly 15 times earnings for the year just ended, and 13.5 times for the year just begun. This is more expensive than its house-building peers, although the land development arm makes direct comparisons more difficult. A rating of 2.3 times historic book, or net asset value, is also no bargain, but those assets are still rising in value. In addition, the near-3% yield is more than twice covered by earnings and the balance sheet is net cash, while earnings momentum looks strong and the prospect of further forecast upgrades should support both profit and dividend growth forecasts. Questor says ‘Hold’.
Update: Biffa: Biffa fits the bill on all counts and we remain vigilant but the stock is making gains, following on from our initial look at the FTSE Small Cap index constituent in February, helped by good full-year results in June and now an acquisition. The North-East based O’Brien adds to Biffa’s reach in waste collection, treatment and recycling. The initial consideration of £35.2 million acquires around £34 million of revenues, which come with a mid-teens operating margin and potential for future cost savings. Analysts are already nudging their earnings forecasts higher and the adjusted estimates look to leave Biffa on a forward price/earnings of around 12 times for the year to March 2018, a nice discount to the broader U.K. market, with a 3% yield for good measure. Cash flow generation should reduce debt, and thus risk, and so long as management sticks to bolt-on deals the stock has the potential to advance further, owing to the relatively dependable nature of the demand for its services and the attractive valuation. Questor says ‘Hold’.
The Guardian
Energy networks’ £7.5 billion windfall ‘should be returned to consumers’: Energy networks have been accused of exploiting U.K. consumers to enjoy a £7.5 billion windfall of unjustified “sky high” profits, and urged to return the money in the form of a one-off £285 rebate to every household.
Chancellor urged to recover money lost from recruitment sector tax avoidance: The Chancellor is being asked to reassure parliament that he will recover any monies lost to aggressive tax avoidance in the recruitment sector, after a Guardian investigation exposed how millions of pounds could be lost to the exchequer.
Bar and restaurant chains scale back U.K. expansion as costs rise: Bars, pubs and restaurant chains are pulling back on expansion and may close outlets amid big rises in food and drink costs.
Store Twenty One goes into liquidation with loss of 900 jobs: Struggling fashion chain Store Twenty One is being liquidated with the loss of 900 retail jobs.
Political upheaval will lead to U.K. economy slowing down, says Moody’s: Britain’s economy will lose momentum this year amid squeezed living standards and uncertainty over Brexit and the inconclusive election result, leading ratings agencies have predicted.
Lloyds Bank brings in single overdraft rate in radical shake-up: Lloyds Bank is to radically change the way it charges for overdrafts on its 20 million accounts, including those at Halifax and Bank of Scotland, in a move it claims will leave most customers better off – although one in 10 could pay significantly more.
Pearson sells slice of Penguin for $1 billion: Pearson has sold a 22% stake in Penguin Random House, the world’s biggest publisher, with titles ranging from Fifty Shades of Grey, Jamie Oliver and The Girl on the Train. The deal values Penguin at $3.55 billion (£2.75 billion).
Daily Mail
Recruiter Page Group’s U.K. profit falls 4.5% as it warns about Brexit and unstable politics and hopes for a tech boom: Investors turned their backs on FTSE 250 recruitment firm Page Group after it warned that the battering of the U.K. hiring market by Brexit and unstable politics was set to continue. The firm saw U.K. profits drop 4.5% year-on-year in the second quarter to £36.6 million and 2.3% over the first half of 2017 to £73 million.
Jobs and pensions in peril at jewellery-encrusted phone maker Vertu after rescue plans fall through: Vertu, which makes jewellery-encrusted phones, has a deficit of around £128million and cannot pay staff or its bills.
Motorists set to benefit at the pumps as U.S. fracking boom sinks the cost of crude oil: Motorists look set to benefit from low fuel prices this summer as an American fracking boom sinks the cost of oil.
North Sea oil firm in corruption scandal: SFO to probe Amec Foster Wheeler: The Serious Fraud Office has launched an investigation into possible bribery and corruption at Amec Foster Wheeler, it was revealed last night.
New Jaguar ‘baby’ E-Pace will be firm’s first car to be built exclusively outside of the U.K.: Jaguar will build a global model exclusively outside of the U.K. for the first time, the car maker will announce. The Jaguar ‘baby’ E-Pace will be unveiled. It is a mid-sized sports utility vehicle costing from £28,500 and will be manufactured at factories in China and Austria.
Daily Express
BoE fails to tackle interest rates but warns less EU trade will harm economy: The pound has plummeted following a speech by Bank of England Deputy Governor Ben Broadbent after he failed to address the outlook for interest rates.
U.K. financial services thriving with profits built and more staff employed: The U.K. cemented its status as a financial services centre as banks and insurers built profits and took on staff in the three months to June.
Wimbledon seating provider announces stock market float plan to raise £60 million: Arena Events Group, which makes seating and equipment for sporting and outdoor leisure events, is up for a stock market float this month.
Matalan thanks store and range makeovers for jump in first-quarter profits: Matalan said its stores and ranges makeover helped beat a household budgets squeeze as it racked up a 37% jump in first-quarter profits.
Carillion shares dive as problem contracts and soaring debt prompt profit warning: Carillion lost more than a third of its value as it sounded a profits warning after taking an £845million hit on problem contracts while debt soared.
Marks & Spencer clothing sales helped by later Easter: Retail giant Marks & Spencer reported an improvement in its under-pressure clothing arm as the timing of Easter helped narrow sales falls.
The Scottish Herald
BrewDog down but not out in trademark battle with Elvis Presley’s estate: BrewDog, the £1 billion Aberdeenshire craft brewer, did not get to where it is by doing things the easy way.
Top Scots Tory calls for an end to calamitous Brexit as Scottish farmers face post-EU wipe-out: A senior Conservative has called for a rethink of his own party’s “calamitous” Brexit policy, warning a trade deal with Donald Trump’s America would wipe out Scottish farmers.
Scots accountants get gloomier about Brexit: Accountants in Scotland have become more gloomy about Brexit and increasingly keen for the United Kingdom to remain part of the European single market, a study has found.
Glasgow hits the heights as one million travel via airport in June: Glasgow Airport last month welcomed more than one million passengers through its gates in the month of June for the first time, as its Edinburgh counterpart enjoyed its second busiest month on record.
Amec expects £2.2 billion Wood deal to go through despite SFO probe: Amec Foster Wheeler last night insisted that its £2.2 billion merger with rival Wood Group is not expected to be affected by an investigation into its business by the Serious Fraud Office (SFO), writes Scott Wright.
Cairn Energy makes fresh find off Senegal: Cairn Energy has found more oil off Senegal but an investment bank described the results of its latest well as disappointing.
Oil and gas giant in recruitment drive: Inverness-based oil and gas recruitment specialist Orion Group has won a multi-million-pound contract to find engineering staff for Italian energy giant Eni.
Software specialist Craneware on track for hike uplift in revenue: Craneware, the software billing specialist focused on the U.S. healthcare market, has signalled its expectation of delivering a big rise in revenue in its last financial year.
Distillers make fresh case for tax reduction: The Scotch whisky industry has warned that high levels of taxation are holding back one of the country’s most important sectors as it prepares for the challenges brought by Brexit.
Collagen losses increase but revenue growth is on track: Collagen Solutions, which makes medical grade biomaterials from a manufacturing base in Glasgow, has doubled its annual losses, in spite of a 26% lift in revenue.
The Scotsman
Thousands of jobs in store as Aldi expands U.K. chain: Aldi is to create nearly 4,000 more U.K. jobs in its largest ever recruitment drive as the German supermarket chain presses ahead with an aggressive expansion strategy.
Calls for notorious Prestonhill quarry pond to be filled in: Calls have been made to drain a notorious quarry pond in Fife after a school teacher died while scuba diving.
Clyde regeneration plan could create 12,400 jobs: Ambitious plans to regenerate the Clydeside area between Glasgow and Renfrew have taken a step forward with the submission of two separate planning applications.
£3 billion HMS Queen Elizabeth ‘vulnerable to low-cost missiles’: It is the largest warship ever built for the Royal Navy and was greeted by cheering spectators when it set sail from Rosyth dockyard for the first-time last month.
City A.M.
Gocompare share price rises giving investors a reason to thank their lucky stars: Shares in Gocompare rose by almost 6% after the company reported a 22% growth in half-year profits.
HSBC Chief Executive warns fragmenting the euro clearing market would hit “the man on the street”: HSBC Boss Stuart Gulliver has warned the fragmentation of the euro clearing market could hit the “man on the street”.
London’s middle-sized firms are the most prepared in the U.K. for Brexit, new data shows: Two-thirds of mid-sized businesses say they’re prepared for Brexit - but feelings about the outlook are split along regional lines.
U.K. house prices were up across the board last month but sales have dropped: House prices are increasing across the country, but the number of sales being completed has dropped. British house prices rose by 2.5% in June, according to estate agent Haart. But they declined 0.6% on the same period last year.
Former BBC commercial headquarters snapped up by Standard Life: Standard Life Investments has acquired the BBC’s former commercial headquarters in a sale and leaseback deal with Kier Property.
TfL awards Taylor Woodrow a £17.8 million contract to rebuild White Hart Lane station: The redevelopment of White Hart Lane station draws closer after Transport for London (TfL) announced Taylor Woodrow has won a £17.8 million contract to design and rebuild the station.