Newspaper Summary
The Times
Merkel scolds carmakers for cheating: Angela Merkel delivered a stern rebuke to car companies for “deceiving” drivers as she opened the Frankfurt Motor Show.
Saudis insist oil float on track despite delay claims: Saudi Aramco has insisted that its proposed stock market listing “remains on track”, despite reports that it may be delayed until 2019.
U.S. inflation at 7-month high: A jump in housing costs and higher petrol prices pushed American inflation to a seven-month high before next week’s meeting of the U.S. Federal Reserve, shortening the odds on an interest rate rise in December.
Surgeon scandal hits Spire’s first half: Spire Healthcare suffered a 75% slump in first-half profits after it was forced to compensate victims of the disgraced surgeon Ian Paterson.
BP signs $3.6 billion Azerbaijan oil deal for further 25 years: BP and seven international partners have signed a $3.6 billion deal to extend a prized Azerbaijan oil contract for 25 more years, allowing them to tap a further two billion barrels of oil.
Irma has blown away profits, says insurer: Munich Re has warned that the carnage caused by hurricanes Harvey and Irma is likely to wipe out its profits for the third quarter of the year.
Qatar cuts its stake in Tiffany: Qatar’s sovereign wealth fund has trimmed its stake in Tiffany, the luxury jeweller, as it seeks to reshuffle its investments.
A fifth of parents raid pension pots to help children, says Prudential: One in five parents have withdrawn money from their retirement fund to help their cash-strapped offspring, according to research that has triggered alarm from pensions experts.
The Independent
British Gas price hikes make Friday 2017’s most expensive day: Friday is expected to be the most expensive day of the year for energy customers, as a hefty price hike from British Gas comes into effect, consumer experts have warned.
Uber introduces price hikes and slashes discount services: Uber has introduced a raft of changes across the U.K. that will make some trips more expensive.
U.K. should make a ‘clean break’ from the EU, says James Dyson: Sir James Dyson has said that Britain should make a “clean break” from the EU and that any kind of transitional deal would just be “a muddle”.
Bhopal disaster victims may never get compensation, fears UN official: The UN’s special rapporteur on hazardous substances and wastes has said that he is “deeply concerned” the merger between Dow Chemical and DuPont may erase any remaining possibility of the victims of the Bhopal disaster seeing an “effective remedy”, more than three decades on from the tragedy.
Restaurants and hotels feel the pinch as EU workers leave the U.K.: Business is booming for Paul Murphy’s recruitment agency in northwest England. Clients are rolling in with more jobs in restaurants, bars and hotels than ever before, but finding workers to fill them has become tricky.
VW recalls 5 million cars in China over airbags linked to deaths: Volkswagen and its Chinese joint ventures FAW-Volkswagen and SAIC Volkswagen will recall 4.86 million vehicles in China due to potential issues with Takata Corp air bags, a blow to the carmaker in the world’s largest auto market.
Nearly 40 U.S. states probe Equifax handling of major data breach: Nearly 40 U.S. states have joined a probe of Equifax’s handling of a massive data breach that exposed valuable information on up to 143 million Americans and sent shares of the credit reporting company tumbling.
Amazon ‘killing U.K. firms by ignoring tax fraud by foreign sellers’: Amazon and eBay have been accused of putting U.K. companies out of business by turning a blind eye to widespread tax fraud by foreign companies and organised criminals using their platforms.
Poundland criticised for selling M&M-style sweets called ‘Nutters’ with cross-eyed faces on bags: Poundland has been criticised by mental health campaigners for selling sweets called “Nutters” which feature cross-eyed faces on the bags.
The Daily Telegraph
Channel 4 in talks with Government on partial move from London: The Government has signalled that significant parts of Channel 4 will be allowed to remain in London if the broadcaster agrees to move some programme commissioning and other teams.
GKN shakes up board with Boss Nigel Stein to stand down: Aerospace and automotive engineer GKN is shaking up its board with long-serving Chief Executive Nigel Stein stepping down.
Thomas Cook plumps up the pillows with Expedia hotel deal: Tour operator Thomas Cook has signed a deal with U.S. travel giant Expedia to ramp up the number of hotels on offer to its customers.
Brent Hoberman raises $85 million for new fund Firstminute Capital: Serial tech entrepreneur and investor Brent Hoberman has launched a new European venture capital fund with a $85 million (£64 million) pot.
Barclays sounds ‘digital deficit’ alarm over U.K.’s faltering computer skills: Britain faces a “digital deficit” with new research revealing almost half of all workers don’t have the computer skills required in an increasingly digitised economy.
Former employees sue Google alleging bias against women in pay and promotion: Three female former employees of Alphabet Inc’s Google filed a lawsuit on Thursday accusing the tech company of discriminating against women in pay and promotions.
FCA rejects calls to publish report into RBS’s controversial restructuring unit: Nicky Morgan, the chair of the Treasury committee, has slammed the decision by City watchdog the Financial Conduct Authority (FCA) not to publish its full report into RBS’s controversial restructuring arm.
HMRC needs more staff to handle Brexit trade work on Britain’s borders: HM Revenue and Customs needs thousands more staff to set up new trade arrangements at Britain’s ports and airports, and expects to have to scrap other projects it is working on to devote more resources to Brexit.
The Questor Column:
A series of mishaps means it’s now time to dispose of this peer-to-peer trust: The trust is P2P Global Investments, which invests not in shares but in a type of loan originated through the relatively new medium of “peer-to-peer” lending platforms. The trust’s aim when it floated was to generate a growing stream of dividends at between 6% and 8% of the initial share price. Initially investors liked the idea and within a few months the shares were trading at a premium of almost 20%. This was followed, however, by a sharp reversal that saw a discount of almost 30% open up at one stage. It was the significant discount, 21% at the time, that prompted our tip at 782p earlier this year. But since then there have been developments that make us uneasy about the holding. First is simply a further narrowing of the discount to about 17%, which automatically reduces the trust’s attractiveness to some extent. On top of that there are signs from elsewhere in the peer-to-peer sector that returns are getting harder to find. Across P2P Global’s own portfolio, impairments from bad loans were £27.7 million in the first six months of this year, according to a research note from Canaccord Genuity, the stockbroker. This equated to an annualised 5.9% of the loan book, compared with 4.4% in the same period of 2016 – a significant increase. New accounting rules relating to loan impairments “will result in a larger one-off adjustment during the early periods of adoption”, the trust has warned. Next is the fact that this newly floated trust has already had to conduct a strategic review. As a result, the original management company will merge with a rival firm, which will run the portfolio. Finally, the trust is fairly expensive. The annual “ongoing” charge is 1.21%, or 1.33% once the performance fee is taken into account – not insubstantial relative to the target yield. The performance fee amounted to £1.5 million in the first half of this year, despite mediocre returns for shareholders, although the criteria for its award are to be tightened. Questor says ‘Sell’.
The Guardian
Sports Direct challenged by MPs over claims it underpays couriers: MPs on two parliamentary select committees have challenged Sports Direct over claims it is deliberately under-paying couriers by mislabeling heavy items, including bicycles, as lightweight packets to avoid paying the fair delivery cost.
UN report attacks austerity budgets for growing inequality: Austerity budgets adopted by governments across the world since the 2008 financial crash are to blame for undermining the job security of millions of workers and threatening the progress made by women in the workplace, according to a UN report.
Ryanair is preparing takeover bid for Alitalia, says Michael O’Leary: Ryanair is preparing a binding takeover bid for Italy’s bankrupt airline Alitalia but has no interest in the ailing German carrier Air Berlin, according to its Chief Executive, Michael O’Leary.
Former Northern Rock investors ask Theresa May for compensation: Former shareholders in Northern Rock are asking Theresa May to listen to their moral case for compensation after their investment in the Newcastle-based lender was wiped out when it was nationalised 10 years ago.
Tesla electric lorry to be unveiled in late October: Tesla is set to launch its first electric lorry, which is expected to be able to drive itself, in late October as the company attempts to break into the commercial market.
New cigarette rules have led to slump in sales, says Londis owner: The group behind the Londis and Budgens convenience store chains says tobacco sales have plunged since new rules came into force which mean cigarettes must be sold in standardised packaging bearing graphic warnings of the dangers of smoking.
British pubs under threat from new ‘eye-watering’ business rates: The great British boozer is under threat as a result of spiralling business rates, according to a campaign group which warns they are a “ticking time bomb” which could devastate the sector.
Daily Mail
Another profit warning sends shares in support services group Interserve down by more than 50% in less than an hour: Interserve, which worked on huge construction projects such as Wembley stadium, said that its results for the whole year will be significantly below expectations – its third profit warning in the last 18 months.
Sterling hits highest level for more than a year against dollar as Bank of England sets scene for interest rate rise before Christmas: The surge in the value of the British currency, under pressure since the Brexit vote last year, came after the Bank said an interest rate rise ‘is likely to be appropriate in the coming months’ if the economy stays on track.
Northern Rock Bosses had to be woken to save bank: Speaking on the tenth anniversary of the run on the Newcastle bank, top City regulator Andrew Bailey revealed how the lender’s top brass had to be woken up to agree an emergency bailout.
Deutsche Boerse agrees to pay penalties worth more than £9 million to settle insider trading investigation against its Boss: Deutsche Boerse has agreed to pay penalties worth more than £9 million to settle an insider trading investigation against its Boss. Prosecutors in Frankfurt looked into whether Chief Executive Carsten Kengeter had bought shares in Deutsche Boerse despite knowing it was in talks to buy the London Stock Exchange (LSE).
Britain should judge Rupert Murdoch’s bid for broadcaster Sky on facts and not politics, his son and fellow Executive James Murdoch says: Hours after the Government referred 21st Century Fox’s £12 billion bid for a detailed investigation, James Murdoch struck a combative tone in defence of his family’s record in building a business that spans TV, film and news.
Daily Express
World War 3 with North Korea to spark financial crash in next six months, Trump aide warns: A horrific war between North Korea and the United States is set to break out in the coming months, and will trigger a devastating financial crisis, an adviser to Donald Trump’s government has warned.
Dunelm shares soar as home furnishings group praise WorldStores acquisition: Dunelm shares jumped 51p to 661½p as the home furnishings group talked up its acquisition of WorldStores as a “springboard” for online growth.
Bank of England warning affects your mortgage costs: Interest rates could rise for the first time in a decade in November, after policymakers at the Bank of England warned a hike is set to happen sooner than expected - in a move that would push up borrowing costs for millions of Britons.
Long-haul flights with other airlines can now by booked through EasyJet: EasyJet threw down the challenge to established network carriers such as British Airways as it launched a new booking platform enabling customers to book long-haul flights with other airlines through its website.
John Lewis profits collapse by 50% amid housing market downturn: John Lewis profits have collapsed by more than half, as a dip in the housing market hits customer demand for home goods.
Bitcoin price crashes below $3,500 amid China cryptocurrency exchange shut down: The bitcoin price has fallen further as China closes down local cryptocurrency exchanges - with BTCC now announcing it will shut at the end of the month.
The Scottish Herald
Fife plays role in new Queen Victoria movie: A vintage furniture specialist in Fife is celebrating the role played by 15 of its products in new movie Victoria & Abdul.
Morrisons continues recovery driven by Boss Potts: WM Morrison underlined its continuing recovery by reporting its seventh consecutive quarter of like for like sales growth, meaning it delivered profit growth on growth for the first time since its turnaround launched in 2015.
Approval for $500 million Shetland oil field development fuels hopes of bonanza: Hurricane Energy has given the go ahead to plans to bring a giant find West of Shetland into production in a move that will boost hopes there could be a bonanza in the area.
Turnover rises at acquisitive accountancy firm Campbell Dallas: chartered accountancy firm Campbell Dallas put in a solid performance in the year to the end of May, growing turnover and partner profits by 18%.
FCA breaks new ground by making competition reference: City regulator the Financial Conduct Authority has taken the highly unusual step of referring the investment consultancy sector to the Competition and Markets Authority for a market investigation, writes Margaret Taylor.
The Scotsman
Bank of England hints at rates rise in ‘coming months’: The Bank of England has signalled that it may hike interest rates in the “coming months” to cool surging inflation as economic growth shows signs of picking up.
End in sight for Brexit-fuelled price hikes, says Next Chief: The Boss of fashion giant Next has said the worst of the Brexit-fuelled price hikes on the high street are over as the group upped its earnings outlook after “encouraging” trading.
Skyscanner owner rings up 200 new jobs for Edinburgh: Skyscanner parent group Ctrip is to open a customer service call centre in Edinburgh, creating up to 200 jobs in the process.
Hospitality veterans strike deal for Lanarkshire hotel: Two hospitality industry veterans who worked together to launch the five-star Blythswood Square Hotel in Glasgow have made an initial acquisition after forming a new business venture.
Creative agency Wire up for the cup with SFA tour deal: Wire, the creative communications agency based in Edinburgh and Glasgow, has been tasked with drawing up an “experiential tour” to take the William Hill Scottish Cup around the country.
Aberdeen’s Cammach takes over rival recruiter Bryant: An Aberdeen recruitment specialist has acquired a city rival in a deal that is expected to create a business with combined headline revenues of more than £14 million.
City A.M.
Private members empire Soho House reports swelling membership and revenues: Private clubs empire Soho House reported a swelling membership base and turnover.
Broadcasters blasted by Ofcom over the lack of diversity on Britain’s TV screens: Britain’s broadcasting regulator had some stern words to say about the lack of diversity on the U.K.’s TV screens.
W7 makeup owner Warpaint’s shares fall out of fashion as profits slip: Shares in W7 makeup owner Warpaint dropped 14% after its maiden results posting revealed a slide in profits.
Haynes increases revenue with novelty manuals and OATS acquisition: Haynes Publishing provided a rare bright spot in the publishing industry this morning, as its diversification into novelty gift books helped boost annual revenue.
Foxy Bingo owner GVC on the hunt for more takeover targets as industry consolidates: Foxy Bingo owner GVC Holdings said this morning it expects to play a “pivotal role” in consolidation of the online gambling industry, as it unveiled a jump in revenue for the first half.