The Times
Panicking investors dash for safe havens: Europe’s markets took another hammering as fears that the Chinese economy may be coming off the rails intensified concerns about Greece’s future in the euro.
Energy giants’ overcharging costs every household £300: David Cameron is prepared to consider placing a temporary cap on the most expensive electricity bills after a watchdog concluded that customers were being overcharged by £1.2 billion a year, No 10 has said.
Risk-takers join their senior managers under the spotlight: More traders who take big bets with banks’ money are to be subject to tougher rules designed to stop wrongdoing in the wake of scandals such as foreign exchange-rigging.
RSA’s Irish claims unit faces inquiry: The accounting watchdog is to investigate employees working in the Irish division of RSA in the period before it was bailed out by its British parent.
Corzine settles on $64.5 million to close MF Global case: Jon Corzine, once one of Wall Street’s most powerful financiers, has reached a $64.5 million agreement to settle a lawsuit brought by investors who lost money in MF Global, his failed brokerage firm.
Welby fears for Arctic as oil giants move in to drill: The Archbishop of Canterbury has attacked plans by oil companies to begin drilling in the Arctic.
M&S falls out of fashion yet again: Marks & Spencer’s attempts to find the fashion pulse of the nation have floundered yet again as cool spring weather deterred shoppers from snapping up summer dresses, blouses and T-shirts.
Cineworld takes an even bigger bite: The return of the blockbuster movie has helped to drive a rebound in sales at Cineworld, with Jurassic World and Minions pushing revenue in the first half up by 11%.
The Independent
Stagecoach hit buffers on rail franchise: Stagecoach’s hopes of being awarded an extension to its South West Trains franchise without competition have been dashed after talks between the company and the Government collapsed.
Supermarket giants opposed to new Sunday hours: Tesco, Sainsbury’s and Waitrose have become unlikely allies in fighting plans to relax Sunday trading laws expected to be revealed by the Chancellor, George Osborne.
Financial Times
Robey Warshaw gains ground on big banks: Robey Warshaw, the tiny advisory firm with about a dozen employees, collected more than £20 million in revenues in its first set of results, highlighting the increasing presence of boutiques in investment banking.
London Tube Managers fail to avert worst strike in a decade: London commuters are being encouraged to walk, cycle or get the bus after eleventh hour talks between unions and London Underground failed to avert the worst Tube strike in more than a decade.
Smiths Group recruits Reynolds Smith as new Chief: Smiths Group, the FTSE 100 engineering conglomerate, has poached Andrew Reynolds Smith from GKN Automotive, to be its new Chief Executive after a lengthy hunt for a new Boss.
U.K. television advertising booms despite digital rise: Spending on TV advertising in the U.K. will surge 9% this year to £4.2 billion, according to forecasts by GroupM, WPP’s media investment division.
CFTC stays ICE’s plan to raise position limits in power contracts: The U.S. futures regulator has pushed back against an effort by Intercontinental Exchange to give speculators more leeway in electricity markets, a rare move in an area where exchange decisions generally go unchallenged.
China stocks fall in defiance of Beijing’s support efforts: Hundreds of Chinese companies have halted trading in their shares as Beijing struggles to insulate the economy from the country’s steepest equity decline in more than two decades.
Noble Group appoints PwC to review accounting practices: Noble Group has moved to address criticism of its financial-reporting practices by appointing an accounting firm to review how it records profits on long-term supply agreements.
Fed orders overhaul of Santander’s U.S. arm: The Federal Reserve has ordered Santander’s U.S. unit to thoroughly overhaul its business operations, marking the latest in a series of missteps in America by the Eurozone’s largest bank.
Private equity firms battle to buy Tesco’s South Korea unit: Buyout firm KKR has rejoined the shortlist of five bidders for Tesco’s South Korean unit after sweetening its bid to enter the highly competitive retail sector of Asia’s fourth-largest economy.
Indian ride-hailing service Ola appoints Arun Sarin to board: Former Vodafone Chief Executive Arun Sarin is to join the board of Ola, the Indian ride-hailing service, becoming the most senior global business leader to take a role at one of the country’s fast growing start-ups.
Microsoft veteran Bill Veghte appointed SurveyMonkey Boss: Bill Veghte, a veteran Microsoft and Hewlett-Packard Executive, has been brought in to run online polling company SurveyMonkey following the death this year of Dave Goldberg.
Ryanair to launch flights to Israel: Ryanair is to launch six flights a week from three central European cities to Israel, making it the latest European low-cost airline to capitalise on the country’s liberalisation of its market.
Lex:
Alcoa: metal ceremony: Alcoa shares have declined by a third since February. And things could have been worse, had it not made the changes it did. The aluminium maker’s strategy, pursued over the past several years, has two planks. First, it wanted to make its core “upstream” aluminium production business more efficient.* Second, it has expanded its manufacturing of end products for aerospace, automobiles and other industries. The shift has won plaudits. Yet the company still cannot fully shake the effects of an aluminium price that is down 15% in eight months. First quarter earnings were aided by strong results in its production businesses. But when Alcoa reports its second-quarter results on Wednesday, a strong earnings forecast from its commodities units is unlikely. Not only have core aluminium prices slipped, the other component of prices — a charge for taking the metal out of storage — have dropped sharply as well. According to Morningstar, premiums have fallen by 65% this year. Recently, the Russian producer Rusal said it would cut production this year to counteract soft prices. China, the world’s biggest producer (and consumer), has, however, been ramping up aluminium exports, which has been a key cause of weak pricing.
Market intervention: uneasy easing: Officials have made cash available for margin lending, lowered transaction fees, threatened “manipulators” with investigation, bought blue-chip stocks, allowed a quarter of the exchange (by value) to stop trading for an extended period, and, reportedly, pushed some short sellers out of the market. Yet China’s correction has little to do with manipulation. The market is only returning to normal after big parts — though not all — of it became wildly overvalued. Yes, violent corrections can hurt the real economy. But intervening in this way is dangerous. It distorts price information that guides asset allocation, storing up trouble for the future; and it amounts to fiddling with private property, undermining the trust that underpins all markets. Not all official interventions are the same and not all are misguided. Some are simple and prosaic. For six months in 1968, the New York Stock Exchange closed on Wednesdays so that brokers, facing huge volumes and a few years away from computerisation, could catch up on a paperwork backlog that was spooking the market. Circuit-breaker rules are sensible concessions to humans’ lemming-like side. And there are hard cases between the extremes. Just look at the Greek stock market, which has been closed for over a week. Given that the country is on the verge of economic and financial collapse, the closure makes sense.
Springer / ProSieben: nein: Owning television stations and newspapers was fashionable back in 2005, the last time Axel Springer and ProSiebenSat. 1 tried to merge. Not anymore. So why do the publisher of Germany’s mass-market Bild Zeitung and commercial broadcaster ProSiebenSat. 1 think their businesses should be combined? Not the prospect of big savings; there is little cost overlap between pap-snaps of Miley Cyrus and episodes of Germany’s Next Supermodel, although there could be scope for cross-promotion of content. ProSieben has 40% of television advertising and online businesses in travel and gaming. Combining the two would add bulk but would not improve the scale of the business in any of its individual markets. A deal could still be done, perhaps involving multiple share classes to preserve her voting power, appointing co-Chief Executives and invoking a national champion to take on the likes of Google and Netflix. If that is the case, shareholders in both Springer and ProSiebenSat. 1 should run for the hills.
Lombard:
Cook’s chef d’oeuvre: The hand of greatness touches many within the hallowed confines of an investment bank. For this reason, several senior people may bear the title “Chairman”, as M&A hotshot Karen Cook now does at Goldman Sachs. Managing Directors — you only get one at lesser businesses too — are, like Lucifer’s names, legion. No matter. A servant of three masters is the servant of no one. The appointment makes the point everyone in the City already knows: Ms Cook matters. The Brit has deep contacts that help her reel in advisory mandates for the likes of AstraZeneca and BG. “She walks through brick walls for clients,” an acquaintance says. Ms Cook does not look, sound or act like a stereotypical Wall Street investment banker, it is said. That makes her an asset for Goldman. Stereotypical Wall Street investment bankers are unaccountably unpopular in some parts of Europe. A fancier job title should help keep Ms Cook striving for Goldman when many seasoned bankers prefer to toil at boutiques.
May contain nuts: Engineers are a chippy lot, prone to complaining they are respected less than financial types. The stock market has provided apparent evidence of this bias, marking down the shares of Smiths Group 5% following the appointment of GKN Executive Andrew Reynolds Smith as Chief Executive of the conglomerate. Outgoing Boss Philip Bowman failed in this. He was a slick deal doer in previous roles, so the chances of Mr Reynolds Smith succeeding look slim. Mr Bowman complained his efforts were stymied by low bond yields. These reduced the discount rate on pension assets, thereby increasing the deficits disposals would have triggered. Mr Reynolds Smith should get along with Sir George, a “passionate engineer”. Non-exec Bill Seegers is an old comrade. But vim rather than bonhomie is needed when shares, dented partly by oil woes, are sliding.
The Daily Telegraph
British Gas: CMA overcharging analysis ‘not credible’: The Competition and Markets Authority’s analysis that the Big Six suppliers have charged households £50 a year too much for their energy is “not credible”, British Gas Owner Centrica has claimed.
GVC makes £900 million bet on Bwin: GVC, the online betting firm, has made a £900 million move for Bwin.party in a bid to see off rival bidder 888 Holdings.
An extra 150,000 bankers to be monitored by watchdog: Thousands more financial traders will be monitored by banks and the Financial Conduct Authority under the certification regime, the City watchdog has announced, as it cracks down on the wholesale markets following the forex manipulation scandal.
Rebel investor Edward Bramson spared making bid for Electra: Edward Bramson, the rebel investor, has ramped up pressure on private equity firm Electra as part of a renewed campaign to gain two board seats.
Hayes says he offered to plead guilty to avoid U.S. extradition: Former UBS trader Thomas Hayes, testifying for the first time at his Libor manipulation trial, said that he agreed to plead guilty in 2013 because he was petrified that he would otherwise be extradited to the U.S..
RBS faces £8 billion in fines and redress costs this year, warn analysts: Royal Bank of Scotland is set for an £8 billion hit this year as restructuring and legal costs mount, analysts at Barclays predict.
“This is the most critical moment in our history” – five days to save Greece from the abyss warn European leaders: The European Union faces “the most critical” moment in its 64-year history, after leaders warned they had five days to prevent Greece from careering out of the euro and into a full blown humanitarian crisis.
China stocks tumble despite action to stop rout: Emerging-market stocks fell toward their lowest level in six months as industrial companies slid and concern grew that China’s bid to stem a rout in the nation’s equities is failing.
New Rolls-Royce Boss Warren East faces £2 billion headache in first week: Rolls-Royce has had £2 billion wiped off its market value since Warren East took the helm of the engineering group.
The Questor Column:
Buy Interserve as order book grows: Interserve’s shares have drifted sideways over the past year, after the company suffered a challenging time in the U.K. construction sector. However, a strong order book and recent contract wins mean the stock is now looking increasingly cheap. The FTSE 250 outsourcing and construction group makes about two-thirds of its revenue and nearly all its profits from its support services business. In a drive to cut costs, companies are choosing to outsource the caretaking and maintenance of their buildings – a fast growing part of Interserve. The company has started work on a contract for the upkeep of the BBC’s Broadcasting House and MediaCity site in Salford. It has also won a £322 million contract to maintain the Ministry Of Defence’s training facilities across the country. Interserve is also involved in public sector projects such as building schools and hospitals, and bridge maintenance. The construction business, which contributes 45% of the group’s revenue, has suffered from falling profits for the past five years. Questor doesn’t expect a rapid turnaround in the construction business, but investors are paid a 4% prospective dividend yield to wait. The payout also increases at an inflation-busting 7% a year. The shares look cheap, trading on 10 times forecast earnings and falling to nine times next year. That looks reasonable given that the order book is hinting at a recovery in the construction sector. Interserve at 618p-18.5p. Questor says “Buy.”
The Guardian
Greece given days to agree bailout deal or face banking collapse and euro exit: Greece has 48 hours to strike a new bailout deal with its Eurozone creditors or face a banking collapse, a humanitarian emergency, and the start of an exit from the single currency, European leaders decided on Tuesday evening.
The £93 billion handshake: businesses pocket huge subsidies and tax breaks: Taxpayers are handing businesses £93 billion a year – a transfer of more than £3,500 from each household in the U.K.
Average shop prices fall 1.3% as lower costs turn into heavy discounts: Heavy discounting by food and furniture retailers helped shop prices fall for the 26th consecutive month in June, according to an industry survey.
Australian shares tumble on commodity falls and stock market turmoil in China: Big falls in commodity prices and more turmoil on Shanghai’s stock market have pushed Australian shares deep into the red.
Daily Mail
Global markets mauled by China trading and fears about a Greek exit from the Eurozone: Global markets capitulated as nervous investors fretted about a Greek exit from the Eurozone and the worst rout in China for more than 20 years.
Bosses call on Osborne to extend tax breaks aimed at boosting business investment: George Osborne is under mounting pressure to use the Budget to extend tax breaks aimed at boosting business investment.
Burberry faces AGM backlash over Chairman and ‘excessive’ Executive pay: Burberry will face shareholder anger at its annual meeting next week as shareholder lobby group Pirc urged shareholders to vote against its Chairman and ‘excessive’ Executive pay.
Watchdog to scrutinise thousands of City staff in bid to crack down on market rigging: Thousands more City workers will be monitored by banks and the Financial Conduct Authority in a bid to crack down on market rigging.
Fears over government price-setting knocks energy shares as energy probe recommends measures to boost competition: Fears over government price-setting knocked energy shares after a year-long probe into the sector recommended radical measures to shake up competition.
Young & Co raises a glass to this autumn’s Rugby World Cup to be held in London: Young & Co Brewery raised a glass to this autumn’s Rugby World Cup when the international tournament will descend on London, home to many of the group’s pubs within easy reach of Twickenham stadium.
Tesco Bosses enjoy share windfalls worth almost £4 million as they pocket their bonuses and ‘golden hello’: A raft of Tesco’s most senior Bosses have been handed shares worth almost £4 million as part of their bonuses.
Daily Express
French engineering company Technip to cut 6,000 jobs: Engineering company Technip has launched a major restructuring plan as a result of the slowdown in the oil and gas industry.
Ministers call for low-carbon strategy: Business leaders have called on the Government to take action to boost clean power and energy efficiency to support a sector worth more than £120billion a year.
Apricot production in England is predicted to soar to 200 tons this season: England’s fledgling apricot production is poised to soar six-fold amid predictions of a bumper crop due to near perfect growing conditions this summer.
The Scottish Herald
Weir Group in near $50 million U.S. expansion: Investors have wiped £180 million off the stock market worth of Weir Group after it moved to increase its exposure to the oil and gas market in spite of the crude price plunge.
Edinburgh testing firm wins North Sea work: Exova, the testing specialist, has been appointed to provide more work in connection with a planned North Sea gas field.
Gillespie MacAndrew elects to follow its own path: Law firm Gillespie Macandrew has revealed it has turned its back on potential mergers and acquisitions in favour of pursuing organic growth as it revealed that profits narrowed in its latest financial year.
Omega Diagnostics shares fall on further HIV test delays: Shares in Omega Diagnostics have plunged by one fifth after it announced further delays to its long awaited portable HIV testing kit.
Calder leaves BIG Partnership: One of the Directors of Scotland’s largest public relations agency has stepped down after more than 12 years with the business.
Wireline Engineering bought by Impact Selector: Impact Selector has bought Aberdeenshire based oil services specialist Wireline Engineering for an undisclosed sum.
The Scotsman
Factory slowdown knocks economy: Hopes for putting Britain’s factories at the centre of the economic recovery suffered a fresh setback as official figures showed the manufacturing sector fell for the second month in a row in May.
Asos cuts a dash as sales recovery stays on track: Online fashion firm Asos posted a 27% leap in U.K. sales as it shrugged off May’s unseasonally cold weather that has hit many high street rivals.
M&S shareholders launch mini-revolt as sales falter: Shareholders turned the screw on Marks & Spencer Boss Marc Bolland with a mini-revolt against his re-election at the AGM as he became the first big retail gun to welcome a relaxation of Sunday trading laws.
City A.M.
Eagle Eye wins Sainsbury’s vouchers deal: Eagle Eye Solutions, a retail and hospitality voucher firm backed by Sir Terry Leahy, saw shares jump 7.3% after striking a deal with the ex-Tesco Boss’s former supermarket rival Sainsbury’s.
McBride relies on strong German market as U.K. performance flags: Private label product supplier McBride said continued strong growth in Germany helped to offset a weaker performance in the U.K. and other key continental European markets during the year to 30 June.
Economists say U.K. growth set to bounce back: The economy is set to grow at a quicker rate than at the start of the year, a think tank has said.
Sepura radios in record revenues: Sepura posted record revenues for the latest financial year, in results announced.
