Newspaper Summary
The Times
Santander set to benefit from RBS ‘start-up’ fund: Royal Bank of Scotland’s £425 million “challenger” fund’s grant policy has come under attack from new lenders and politicians because one of its Chief beneficiaries could be Santander.
KKR cleans up with sale of £120 million stake in Pets at Home: The American private equity giant behind Pets At Home has raised another £119 million by selling part of its stake in the chain.
Myners calls for inquiry into owner of Monarch: Lord Myners has called into question the conduct of Greybull Capital, the owner of Monarch Airlines, and demanded that MPs launch an inquiry in to the carrier’s collapse.
Murdochs’ media links will be focus of Sky bid investigation: Links between Sky and The Times, The Sun and other newspapers controlled by companies connected to Rupert Murdoch are to be examined by competition regulators as part of a detailed investigation into a proposed £11.7 billion takeover of the broadcaster by 21st Century Fox.
Domino’s gives short-sellers queasy feeling as pizza sales improve: The hedge funds stalking Britain’s biggest pizza takeaway chain had to eat humble pie after Domino’s reported a surge in sales.
Boeing move against Bombardier is unjustified, says Greg Clark: Greg Clark, the business secretary, told MPs that the complaint brought by Boeing against Bombardier, the aircraft maker, was unjustified and that Britain would do everything it could to resolve the row.
Factory output jumps and gives economy a lift: The outlook for Britain’s economy has been given a boost after official figures revealed that the manufacturing and construction sectors were doing better than expected.
Second nuisance calls fine for doorstep lender Provident Financial: The doorstep lender’s Vanquis Bank business was fined £75,000 for sending nuisance marketing texts and emails. The Information Commissioner’s Office said that Vanquis had broken the law because the recipients had not agreed to being sent the marketing messages.
The Independent
United Utilities fined for providing water unfit for human consumption: Water firm United Utilities has been fined £300,000 for providing water unfit for human consumption in Lancashire in the summer of 2015.
Weedkiller found in Ben and Jerry’s ice cream: Ben & Jerry’s have vowed to introduce to remove all traces of weedkiller from their products and introduce an “organic dairy” range by next year, after a study showed traces of glyphosate in its European ice cream.
Germany’s largest trade union pushes for shorter working hours: Germany’s largest trade union pushed for shorter working hours and 6% more pay for the 3.9 million workers in the metals and electrical sectors on Tuesday, in what it said was a drive for a better work-life balance.
Sadiq Khan set to visit India and Pakistan to encourage London trade: London mayor Sadiq Khan will visit India and Pakistan later this year to promote business and cultural ties between the two countries and the capital.
Hermes Boss is ‘shocked’ at firm’s treatment of self-employed workers: A Boss at courier firm Hermes has apologised to MPs over a case in which a driver’s contract was cancelled because he was unable to work due to the premature birth of a child.
Ikea closer to being energy independent as its turbines surpass stores: Flat pack furniture giant Ikea has posted rising full year sales and revealed that it now owns more wind turbines than stores as it moves a step closer to becoming “energy independent”.
Richard Branson calls for universal basic income: Richard Branson has backed the introduction of a universal basic income and said it is crucial to tackling the rise of artificial intelligence (AI).
Uber says U.K. National Insurance contributions would cost millions: Uber said on Tuesday that paying National Insurance contributions for its British drivers would add tens of millions of pounds to the taxi app’s costs were they to be deemed employees.
Air fares must increase to pay for airline collapse, says Abta: All plane tickets should be subject to a levy to fund the repatriation of passengers after an airline collapses, the Association of British Travel Agents (Abta) has demanded.
The landmark legal battle that could stop women in the U.K. being paid less than men: The latest hearing in the U.K.’s largest ever private sector equal pay claim is due to kick off, in a case that could eventually see around 15,000 predominantly female Asda workers recovering well over £100 million in pay.
The Daily Telegraph
BAE Systems to cut 1,900 jobs as new Boss rings in the changes: The new Boss of Britain’s biggest defence contractor BAE Systems has wasted no time in wielding the axe with plans for more than 1,900 redundancies, double what had been anticipated.
Equifax hackers targeted 15.2 million U.K. records: Equifax has admitted that almost double the number of U.K. customers had their information stolen in a major data breach earlier this year than it originally thought, and that millions more could have had their details compromised.
Gig economy companies claim flexibility essential for growth: Approximately 50% of Deliveroo’s 15,000 self-employed riders, who deliver takeaway meals on bicycles, are students who prefer flexible working, a select committee has heard.
Energy markets march higher as Government price cap looms: Government’s plan to cap household energy prices is set to steamroll ahead even as fresh data shows wholesale prices are on the rise and bills remain well below their 2014 peak.
Towergate owner to snap up motorbike broker Carole Nash in £65 million deal: The U.K. insurance giant created by the merger of Towergate and four companies this year is to snap up motorcycle insurance broker Carole Nash this week in a deal worth up to £65 million.
Robert Walters raises profit forecast as U.K. hiring picks up: Recruiter Robert Walters upgraded its profit forecasts for the second consecutive quarter thanks to a boost in technology and legal jobs in the U.K.
Marston’s cools pub growth plans on back of subdued consumer outlook: Pub group Marston’s has trimmed its expansion plans on the back of a more cautious consumer outlook.
Ted Baker profits strut ahead of rivals despite slowing U.S. growth: Ted Baker has strutted ahead of its fashion rivals by delivering a 14% jump in profits for the first half of the year on the back of its ambition to become a global brand.
The Questor Column:
At this incredibly cheap valuation, take a punt on JackpotJoy: As the U.K. leader in online bingo, JackpotJoy (JPJ) is a bit of a love-it-or-hate-it stock and as such risk-averse investors should probably move along now. But those portfolio builders who are willing to take their chances and speculate to accumulate may be tempted to give the stock a whirl. Software deals with the likes of Gamesys keep investment low and boost cashflow, which in turn means the company can start to refinance, and pay down, its hefty debts which come with an interest rate north of 9%. Finally, the shares are cheap, on barely eight times earnings for 2017. Yet stocks are only that cheap with good reason and the £370 million net debt pile (including contingent payments relating to prior acquisitions) is a major factor in this case. Others worry whether Gamesys could become a competitor rather than supplier, although it has a recently-extended non-compete agreement. A new heavy-hitting management team arrived in 2016, in the form of a Chairman and Chief Executive who have industry experience with experience from Gala Coral and Sportingbet respectively. Questor says ‘Buy’.
Update: Centrica: After Card Factory (CARD) last week and Accrol (ACRL:AIM) this week, another bashing for Centrica (CNA) in the wake of the Prime Minister’s speech in Manchester last Wednesday (4 Oct) capped what has been a very testing fortnight for this particular column. In a worst case, broker research suggests margins could halve to 3%, leaving the dividend only once covered, so a 70% pay-out ratio (1.4 times cover) could take the shareholder distribution from 12p to less than 9p. Investors would still demand a premium to the overall U.K. market’s yield (of just under 4%) to compensate for the perceived earnings risk, so a 5% yield after any dividend cut could imply that the shares slide to 170p (or lower) before a reassessment. The good news is the shares are nearly there already but that may admittedly be little consolation to shareholders. Questor says ‘Hold’.
The Guardian
Saving Bombardier jobs needs more than fluffy words, union tells May: The government has been accused of failing to go beyond “fluffy words” in its attempts to help more than 4,000 staff of aircraft maker Bombardier who face losing their jobs in an international trade dispute.
Network Rail to get budget boost despite efficiency concerns: Network Rail is set to be granted an enhanced budget, likely to be more than £40 billion, to run Britain’s railway despite the regulator highlighting more concerns over billions lost due to inefficiency.
U.K. productivity estimates must be ‘significantly’ lowered, admits OBR: The government’s independent economic forecaster has admitted it will need to “significantly” lower its estimates for the productivity of U.K. workers after a decade of stagnant growth since the financial crisis.
U.K. state should pay for housing, food, transport and internet, says report: Free housing, food, transport and access to the internet should be given to British citizens in a massive expansion of the welfare state, according to a report warning the rapid advance of technology will lead to job losses.
Tesco’s U.K. financial forecasts can change overnight, court told: The sheer scale of supermarket firm Tesco meant the financial picture could change “overnight”, a court has heard.
Deliveroo Boss: giving workers better rights will add £1 to meal cost: The Boss of Deliveroo has warned MPs that if the company is forced to give workers basic rights such as the minimum wage and holiday and sick pay it will pass the cost on to consumers by raising the cost of delivery by £1.
E.ON Chief: Theresa May’s energy price cap will hurt competition: Theresa May’s price cap on energy bills would be a backward step that hits competition, deters new companies and hurts consumers, the head of one of the country’s biggest energy firms has warned.
Global economic recovery may not last, warns IMF: The International Monetary Fund has said the global economy’s recent recovery may not last, despite a pickup in activity in all western countries except the U.K.
Daily Mail
Jupiter Asset Management pulls £300 million from fund manager Neil Woodford over bad bets: A rift between fund manager Neil Woodford and his long-time supporter Jupiter Asset Management has gripped the markets. Sources said Jupiter was pulling nearly £300million out of Woodford’s flagship income fund after a 20-year partnership between them.
Assura appoints former NHS Improvement chair Ed Smith as a non-Executive Director: Primary care property developer Assura has appointed the former chair of NHS Improvement as a non-Executive Director.
Shamed Icelandic money men plot £1.5 billion comeback: Trio plan to float supplier of pizzas and salads to M&S and Tesco: Three tycoons who were embroiled in the Icelandic financial crisis are plotting a comeback by floating their food business on the London Stock Exchange.
Struggling Capita hires ex-Boss of oil services firm Amec Foster Wheeler as Chief Exec: Jonathan Lewis, 55, will have to revamp the firm, which provides IT services to public and private sector companies, after a string of profit warnings.
Co-op set to take over 7,000 Nisa stores after board reccomends members accept £143 million takeover bid: The board of convenience store operator Nisa has recommended that its members accept a £143million takeover bid from the Co-op.
Wind power tycoon secretly borrowed £1.8 million from his company to buy personal property: A wind power tycoon secretly borrowed £1.8million from his business to spend on buying personal property.
Daily Express
Google reported to be purchasing Apple in ‘erroneous’ Dow Jones hiccup: Dow Jones has reported that Google was in the process of taking over Apple inc in an “erroneous” hiccup that mystified readers and shook the stock market.
Brexit ‘no deal’ will backfire on the EU: Manufacturing Chief warns Barnier to negotiate: The European Union’s (EU) Chief negotiator Michel Barnier must be given the go-ahead to negotiate a Brexit trade deal or Brussels risks shooting itself in the foot, a manufacturing organisation Chief warned.
ECB stress test exposes huge risk to Europe’s banks: Banks within the eurozone may not be able to cope with the anticipated rise in interest rates, the European Central Bank (ECB) has warned.
Rush to spend set to give massive boost to Britain’s economy: The rush to spend £500 million worth of old round pound coins in the coming days is set to give the economy a huge boost.
Revolution Bars rejects merger offer from Deltic Group in favour of cash offer: Cocktail bars operator Revolution Bars has urged nightclubs suitor Deltic Group to make a cash offer after rejecting a merger deal.
Retail sales lifted by food and clothing price hike: Food and clothing price hikes helped deliver a 2.3% rise in U.K. retail sales in September.
The Scottish Herald
Dutch talking right language for Edinburgh firm Lingo24: Lingo24, the translation services specialist, has opened an office in The Netherlands to capitalise on its rapid growth in Amsterdam, as it forecasts lifting turnover to beyond £10 million for the first time.
Toy firm Grossman plays with £3 million profit: H Grossman, the toy importer and wholesaler, has turned in a £3 million pre-tax profit for the 2016 calendar year, reversing a £600,000 loss the previous year.
Aberdeen poised to be transformed by road and rail projects: The North-east is facing a travel transformation over the next few years following this winter’s completion of the Aberdeen Western Peripheral Route (AWPR).
Salmon industry must leap over red tape: It is not often that the United States is referred to as an emerging market, but for The Scottish Salmon Company, that is precisely what it is.
Gillespie Macandrew installs second non-lawyer CEO: Gillespie Macandrew Chief Executive Chris West is retiring from the firm after leading it to its highest-ever turnover figure in the 2016/17 financial year.
Banking stocks boost FTSE 100 as pound shrugs off economic gloom: The pound has made gains despite a flurry of gloomy economic reports, while advances among bank stocks helped the wider market push higher.
Record year for public sector equity investment: The investment arm of Scottish Enterprise backed 146 Scottish companies with a record £63.5 million during 2016/17.
The Scotsman
IMF raises growth forecast for all advanced economies except U.K.: The pound has made gains despite a flurry of gloomy economic reports, while advances among bank stocks helped the wider market push higher.
Nicola Sturgeon announces publicly owned energy company: Nicola Sturgeon has unveiled plans to create a new state-owned Scottish energy firm in a move aimed at driving down soaring energy costs.
City A.M.
M7 Real Estate backs Britain’s smaller businesses with IPO of new property investment vehicle: Real estate investment firm M7 has launched a new listed trust, focusing on commercial property in the U.K., which aims to raise £300 million in a stock market float.
Vedanta digs deep to boost mined metals production: India-based miner Vedanta Resources boosted its metal production in the first half of the year thanks to higher output across its mines.
Rapid expansion delivers boosted sales for easyHotel: Budget hotel chain easyHotel revealed a jump in sales this morning as the company expanded its presence in Europe, especially the U.K.
Pfizer mulls the sale of its consumer healthcare business: U.S. pharmaceuticals giant Pfizer is reviewing strategic alternatives for its consumer healthcare business, including a full or partial separation of the business through a spin-off, sale or other transaction.
Tesco and Waitrose ready meal supplier Bakkavor sets date for IPO: Bakkavor, a ready meal supplier which serves Tesco, Marks & Spencer, Sainbury’s and Waitrose, has set an early November date for its IPO which City A.M. revealed earlier this year could value it at up to £2 billion.