The Times
China rout sparks global sell-off: A stock market rout in China reverberated across the globe on the first trading session of the new year, sending shares sharply lower and sparking fears of a prolonged sell-off because of slower growth in the world’s second-largest economy.
Ashley keeps it all in the family at Sports Direct: Sports Direct has been forced on to the defensive after it was revealed that its Founder’s future son-in-law, a former nightclub promoter, could make millions for “creating value” in the retailer’s property estate.
Growth fears send sterling tumbling to nine-month low: Concerns that weaker-than-expected growth in Britain could push the prospect of an interest rate rise even further into the future sent the pound falling to a nine-month low against the dollar.
December flooding bill set to top £2.8 billion: The full financial impact of the three storms that battered Britain in December could top £2.8 billion, with dozens of flood alerts still in place.
North Sea oil and gas output rises for first time in 15 years: Britain’s North Sea oil and gas production rose for the first time in 15 years, despite the plunging price of crude.
Property deal puts cinema in the picture: The world’s tallest cinema has been bought by U.K. Commercial Property Trust in a deal worth £29.2 million.
The Independent
Britain’s top Bosses ‘earn average U.K. annual salary in 22 hours of work’: By 6pm on Tuesday, Britain’s top Bosses will have earned more than the average U.K. worker gets in an entire year, new calculations from the High Pay Centre think-tank suggest.
Underpowered Ferrari’s shares stall on first day’s trading in Milan: Ferrari stalled on the starting grid on its first day trading on Milan’s stock exchange, with its shares being briefly suspended as they dropped on their Italian debut.
Almost half of the U.K. workforce will look for a new job in 2016: Nearly half of U.K. workers or 15.3 million people will look for a new job in 2016 due to bad management and how poorly valued they are, according to a new report.
Uber surge sparks passenger outrage as one user receives CAD $1,100 NYE bill: An Uber passenger is calling for fairer prices and better warnings after being charged $1,114.71 for a cab ride on New Year’s Eve.
Financial Times
Packaging group Smurfit Kappa moves into Brazil: Smurfit Kappa Group has made its first acquisitions in Brazil as it looks to expand its presence in Latin America, where it claims to be the biggest regional supplier of corrugated packaging.
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Christmas floods hit shares of U.K.-focused insurers: Shares in U.K.-focused insurance companies fell sharply on Monday as investors digested the impact of flooding over the Christmas period. Direct Line, RSA and Aviva, which have strong positions in the U.K. general insurance market, all fell by almost 4%.
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Oil group JKX hits out at Russian investor Proxima Capital: JKX, the London-listed oil and gas producer, has attacked its second-largest shareholder, accusing it of trying to take over the company by the back door.
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PAG raises $3.6 billion for Asian buyout fund: Shan Weijian, the former TPG Executive who now leads private equity firm PAG, has raised $3.6 billion for his second Asian buyout fund, joining the fundraising rush in the region.
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Santander U.K. to re-enter investment advice market: Santander U.K. is returning to the investment advice market in the latest sign of a more assertive mood in the City just three years after high street banks abandoned the sector under pressure from fines for misselling.
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Baxalta agrees $1.6 billion deal for Symphogen cancer drug tie-up: Baxalta, the U.S. biotech company facing renewed takeover interest from Shire, has agreed a deal worth up to $1.6 billion to develop cancer drugs with a Danish company called Symphogen.
AA in joint venture to develop connected car services: The AA has signed a joint venture to develop connected car services that could enable the roadside assistance company to remotely identify potential breakdowns before they happen.
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Nokia gains control of Alcatel-Lucent following €15.6 billion offer: Nokia said on Monday it had gained control of Alcatel-Lucent, following its €15.6 billion all-share offer for the French telecoms equipment maker but still faces opposition from some shareholders.
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Lex:
General Motors/Lyft: waking up in Vegas: General Motors is hardly the first reveller to leave Las Vegas with a lighter wallet. But unlike the gamblers who make Sin City glow, the carmaker can legitimately claim its wager in the desert was a worthy bet. On Monday, at the Consumer Electronics Show in Las Vegas, GM said it would put $500 million not on black or red, but on pink — the colour associated with start-up Lyft.
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U.K. consumer borrowing: credit unchecked: For the pundits wrongfooted by Britain’s economic recovery (that is, most of them), there is a dour reply to the government’s Tiggerish cheer. Yes, GDP has risen solidly for three years. No, fiscal retrenchment has not sent millions to the dole. Whoops. But this reprieve has been bought at a terrible cost. Back to its bad old ways, the U.K. has staved off stagnation by piling up private debt, just as it did before the crisis.
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Cairn Energy: making up: The KISS principle is working for Cairn Energy, the U.K.-listed oil explorer. It plans to drill oil wells off the coast of Senegal; it has the cash to do so. Simple. Having found some evidence of oil in the area last year, on Monday the explorer reported another drilling success. Cairn’s shares rallied as much as 4% even as the FTSE and other markets fell hard.
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Lombard:
Investment advisers prepare to return to the fray: Under pressure for mis-selling, retail banks have pivoted through 180 degrees in their willingness to provide advice. Formerly, hawk-eyed cashiers frogmarched anyone with a balance of more than £1,000 to pimply teenage “investment experts” for a shakedown. Now, staff limit guidance to pointing at ranks of ATMs and smiling.
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I, Jeevesdroid: It’s refreshing to hear Mark Zuckerberg is tackling the big problems facing the human race in the 21st century. Lesser brains are pondering world hunger. The Facebook Founder is working on a “robot butler”. He currently envisages a voice-activated system embedded in his house that would control lights, heating and piped music. Hopefully, the final product will be closer to a robotic version of Jeeves, the super-valet described by PG Wodehouse.
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The Daily Telegraph
The Guardian considers abandoning multimillion-pound events shed amid cost cuts: The Guardian is considering abandoning multimillion-pound plans to open a large events space in a listed former train shed opposite its King’s Cross offices over fears the project could become a white elephant.
Euro to tumble below the U.S. dollar for first time since 2002, predicts Bank of America: The Eurozone’s embattled currency will soon be worth less than the U.S. dollar for the first time in more than 13 years, analysts at Bank of America Merrill Lynch have predicted.
Priory clinic sold to U.S. mental healthcare chain for £1.5 billion: The Priory Group of health clinics and schools, which counts model Kate Moss and singer Amy Winehouse among its former patients, has been sold for around £1.5 billion by private equity firm Advent to a U.S.-based healthcare firm.
Elon Musk’s Tesla sales limp over the line: Billionaire Elon Musk’s Tesla electric car company hit the low end of its targets for deliveries in the final quarter, handing over the keys to 17,400 of its luxury vehicles.
More than 100,000 small firms demand rethink on HMRC tax proposal: More than 100,000 small business Owners and self-employed workers have joined forces to fight a Government proposal that would force them to file tax returns four times a year instead of annually.
Oil explorer slams investor for stealth takeover attempt: JKX claims its second-biggest shareholder is trying to take control of the company without offering a ‘fair premium.
The Questor Column:
Randgold Resources offers safe haven: Gold was one of the few places of refuge for investors on a brutal first day’s trading of the new year, and Randgold Resources remains the best share to get exposure to the yellow metal. The gold miner is the largest pure gold play in the FTSE 100, with its mines located in Africa. In the face of lower prices, Randgold is ramping up activity. Production in the third quarter of 305,000 ounces was up 1.7% on the second quarter, and more than 6% higher than the 287,000 ounces produced in the final quarter of 2014. The increased production hasn’t been enough to protect profits, which fell to $48.8 million (£33 million) during the three months ended September, down from $59.2 million in the previous quarter. The market expectation is for profits to fall to around $242 million for the full year, down from $353 million a year earlier. The company has a strong balance sheet with no debts and $168 million in cash at the end of September, up from $141 million just six months earlier. Looking out over the long term, Randgold is likely to be a survivor of the nuclear winter now facing the mining industry and, when it emerges, its market position will be enhanced. The profitability, having already fallen sharply, should also be insulated to some extent as a result of revenues from the dollar-denominated gold price, while paying out wages and costs in sharply falling emerging market currencies. The shares are by no means cheap but this looks like one of the best places to get pure gold exposure through shares. Hold. Randgold Resources at £42.43 +100p. Questor says “Hold”.
The Guardian
Jitters over China manufacturing slowdown wipe £38 billion off FTSE 100: The FTSE 100 index had £38 billion wiped off its value as global stock markets started the year with a rout sparked by fresh fears over the Chinese economy.
Factory figures make for grim reading as global stock markets fall: Figures from China showing that factory output contracted for a 10th straight month in December pointed to a continuation of 2015’s global economic slowdown and the likelihood of worse to come.
HSBC escapes action by City regulator following Swiss tax scandal: HSBC will not face formal action from the City regulator following revelations that the Swiss arm of Britain’s biggest bank helped clients to evade tax.
U.K. factories in ‘near stagnation’ after output growth decline: U.K. factories entered 2016 in a “state of near stagnation” following a decline in output growth and new orders during December.
Insurers paid out $27 billion for natural disaster claims in 2015: Around $27 billion (£18 billion) was paid out by insurers for natural disaster claims last year, with weather causing 94% of incidents, according to data from reinsurer Munich Re.
General Motors invests $500 million in ride-hailing company Lyft: General Motors and ride-hailing company Lyft are forming an unprecedented partnership that could help them beat their rivals to the self-driving future.
Daily Mail
Promising debut for population analytics firm Trendit on London Stock Exchange, with shares up to 6.12p: Population analytics firm Trendit became the first firm this year to float on the London Stock Exchange, and got off to a promising start.
Ferrari debuts on the Italian stock market, but shares stay idle around their E42 opening price: Ferrari has made its debut in a very different arena – the Italian stock market. The luxury car-maker, which has already listed on the New York Stock Exchange, completed a secondary listing on the Italian Bourse.
EE Boss to step down once £12.5 billion merger with BT is approved by Competition and Markets Authority: EE’s Boss Olaf Swantee has announced he will step down after its £12.5billion merger with BT is completed.
Dismal first day of trading of 2016 as IMF warns that China’s economic woes could ‘spook’ financial markets again this year: China’s economic woes could ‘spook’ the financial markets again this year, the International Monetary Fund warned last night.
Top mandarin Sir Nicholas Macpherson retires after a decade as Permanent Secretary of the Treasury: The top civil servant at the Treasury will stand down at the end of March after more than 30 years at the department.
Shell warns that oil could hit $20 a barrel – but defends £36 billion takeover of BG as a long-term deal over 15-year period: The finance Boss of Shell has warned the price of oil could fall to $20 a barrel within weeks but has defended its £36billion takeover of BG Group as a long-term deal.
Grainger sells its Equity Release business to Turbo Group in a £325 million deal to reduce financial and operational costs: Residential landlord group Grainger is selling its retirement division to private equity firms in a £325 million deal.
Daily Express
Britain’s housing shortage at ‘crisis point’ with ten buyers for every home on sale: Britain’s housing shortage has reached crisis point as the number of prospective buyers dramatically outweighs the number of properties on sale, estate agents said.
Britain’s borrowing reaches £180 billion as debt jumps ahead of Christmas: British homes are racking up huge levels of debt at a rate not seen since 2008 ringing alarm bells among experts.
Happy New Year for drivers as diesel prices fall below £1 per litre: Supermarkets have slashed diesel prices to below £1 a litre for the first time in six years, marking a good start to 2016 for millions of drivers.
The Scottish Herald
Central Belt in focus as Scotland’s dealmakers prepare for busy year: Accountancy giants have said they are boosting their corporate finance departments in Scotland in readiness for a strong year of mergers and acquisitions activity with a surge in deals in prospect in the Central Belt.
Cairn Energy makes progress off West Africa: Cairn Energy has announced positive results from appraisal drilling on a find it made off Senegal.
Curry entrepreneur eyes TV cookery slots after selling most of Indian restaurant business: Sanjay Majhu hopes to branch into TV cookery, overseas healthcare and online opportunities after selling most of the Indian restaurant business best known for the Ashoka brand.
Currie made £8 million loss in year of its sale: Martin Currie, the fund house acquired by Legg Mason in October 2014, slumped to a loss of £8 million in the 15 months to March 2015.
M&S Bank sticks with Story: Edinburgh-based Story has been reappointed by M&S Bank as its creative agency, following a formal tender process.
The Scotsman
Maureen Kinsler named chair of IP law firm Marks & Clerk: Marks & Clerk, the patent and trade mark firm, has elected Maureen Kinsler as its international Chairman.
Keith Barclay joins BGF investment team in Aberdeen: The Business Growth Fund (BGF) has appointed Keith Barclay to its investment team in Aberdeen.
High speed broadband rolled out to 500,000 homes and businesses: More than 500,000 rural homes and businesses can now connect to high-speed broadband after the latest roll out of a £410 million programme.
Bill Dobbie’s Castle Street buys IT services firm: Castle Street Investments has struck a £34.8 million deal to buy an IT and cloud services firm.
Software firm Arria breaks into utilities market: Language software specialist Arria NLG has expanded into the utilities sector after signing a deal with a U.S. electricity provider.
City A.M.
U.K. house prices: Sales to first time buyers rise by almost a quarter in 2015 as deposit costs drop: First-time buyer sales rose at their fastest rate in November since August 2007 as the cost of owning a first home continued to fall.
Mike Tyson joins the bitcoin fight by launching his own mobile wallet brand with Bitcoin Direct: Mike Tyson is joining the bitcoin mobile wallet fight. The former boxer has announced plans to launch a bitcoin wallet together with Bitcoin Direct, hoping to convert the general public to the digital currency.
Brent and U.S. crude oil prices rise amid escalating political tension between Saudi Arabia and Iran: Oil prices dipped again after it rose as much as 4%, wiping out gains made earlier in the day as rising political tension between two of the biggest powers in the Middle East stoked concern about potential supply disruptions.
EU referendum: Societe Generale analysts say chances of Brexit are nearing 50/50: Analysts at Societe Generale have warned there is a “high risk that the U.K. could vote to leave the European Union” this year.
Brookfield Property Partners buys Potsdamer Platz in central Berlin: Canary Wharf and Center Parcs Owner Brookfield Property Partners has bought a chunk of central Berlin in partnership with an Asian sovereign wealth fund for an undisclosed sum.
U.S. manufacturing contracts for second consecutive month: The U.S. manufacturing sector contracted for a second consecutive month in December, according to survey figures released.
German inflation falls further below Eurozone target: Inflation in Germany, the biggest economy in the Eurozone, failed to build on previous increases in December.
LV= steps into legal market with law firm Lyons Davidson partnership to provide a selection of legal services: Insurance company LV= announced it is entering the legal market, working with a law firm to provide a range of legal advice services.
Grainger sells Retirement Solutions business to private equity firms Electra and Patron in £325 million deal: Residential landlord Grainger has sold off its equity release division to two private equity firms in a £325 million deal, as it turns its attention to the private rental market.
