The Times
Congo mine deaths raise safety questions at Glencore: Glencore was facing fresh questions about its safety record yesterday after an accident at a mine in the Democratic Republic of Congo killed two workers and left five unaccounted for.
Deutsche Borse races to seal London Stock Exchange deal before U.S. rivals bid: Deutsche Borse is closing in on a deal to merge with the London Stock Exchange within days, unless there is a counterbid from America.
Goldman Executive resigns over alleged breach of rules: Tim Leissner, Chairman of the Southeast Asia division of Goldman Sachs, resigned last month after he allegedly broke the investment bank’s rules.
RBS Executives collect £17 million in share awards despite losses: Royal Bank of Scotland has announced more than £17 million in share awards to senior management, two weeks after it unveiled a £2 billion loss.
Former JPMorgan adviser jailed over $20 million theft from clients: A former JPMorgan Chase & Co investment adviser was sentenced to five years in prison yesterday, after admitting that he stole more than $20 million from customer accounts and used the money to feed his “pathological” gambling habit.
Arrival of Iranian oil sends crude back below $40: Oil prices dipped back below $40 a barrel yesterday as traders took into account the arrival of the first shipment from Iran since sanctions were lifted.
Burberry seeks to unmask mystery investor: Christopher Bailey may have 16 years at Burberry under his trench coat belt, but the creative designer and Chief Executive may be about to face the biggest test of his career.
Christopher Kane enjoys a sales boost: Sales at Christopher Kane, the fashion designer, have jumped by 32% to more than £9 million but losses have widened.
Mortgage interest rates stand at record lows: Mortgage interest rates are at their lowest since the Bank of England began collecting the figures eight years ago.
The Independent
Bank of England poised for negative interest rates if ‘it becomes appropriate’: The Bank of England stands ready to cut interest rates again if needed but is wary of the potential side-effects of slashing borrowing costs into negative territory, Martin Weale, one of its rate-setters, has warned.
Foxtons has blamed lower profits on the ‘challenging’ London property market: Foxtons profits have been hit by a challenging London house market – and the firm flagged up potential disruption from the Brexit referendum in June.
We overreached ourselves, says Npower as job cull is confirmed: The Boss of Npower said yesterday that the company tried to do “too much, too soon” as it reported huge losses and confirmed the loss of 2,400 jobs in the U.K.
Sir Martin Sorrell says Google and Facebook advertising systems need ‘rapid overhaul’: Advertising guru Sir Martin Sorrell has called on Google and Facebook to address the “big issue” of failing confidence in the value of online advertising.
Financial Times
U.K. tech start-up Yieldify accused of copying code: Yieldify, a London-based start-up backed by some of the world’s leading technology companies, has been accused of stealing software from a rival, in a case that threatens the future of one of U.K. tech scene’s brightest stars.
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Expansion weighs on PizzaExpress profits: Profit growth at PizzaExpress has slowed despite a rise in sales as the restaurant group pursues ambitious expansion plans abroad and experiments with a delivery service.
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Competition watchdog calls for rail overhaul: Rival train companies should be allowed to offer services on the same lines as a way of cutting fares and improving passenger satisfaction, the competition watchdog has said.
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Esure says GoCompare the premium growth: Esure, the motor insurance specialist, has signalled a new and more aggressive drive for growth after reporting a 6% rise in gross premiums, to £550 million.
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Investor orders for Berkshire Hathaway bond sale hit $34 billion: Investor orders for a piece of a $9 billion Berkshire Hathaway bond sale eclipsed $30 billion on Tuesday, as the conglomerate headed by Warren Buffett sought to repay bank loans used to finance its $36 billion takeover of Precision Castparts.
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Lagardere to lose CFO stalwart: The Chief Financial Officer of French media group Lagardere is to leave, raising questions about whether it will remain an independent company, according to people familiar with the matter.
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Bristol-Myers Squibb shakes up China operations to combat bribery: Bristol-Myers Squibb has tightened rules on the way its sales representatives work with doctors in China after a $14 million settlement over bribery allegations in the country.
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Lex:
Paddy Power Betfair: stacking the deck: Bookies also like to strip risk out of the gambling business. Pursuing scale is one way. Paddy Power and Betfair recently completed a merger. The more wagers you take, the more evenly they fall.
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Italian banks: the straight way lost: News that the European Central Bank is monitoring liquidity levels at several Italian lenders should come as little surprise to weary investors: the Italian MSCI bank index has dropped 27% this year, against a 15% fall for the wider European index.
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Petrobras: rip tide: For six years Petrobras’s shares rode a tsunami of money that crested in 2008. The undertow since then has been brutal. The Brazilian state oil company’s shares have fallen 90%.
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Lombard:
Regulator should make Sir Philip dig deeper in BHS pensions haggle: It is high noon for the Pensions Regulator and Sir Philip Green. At stake is how much the retail entrepreneur should contribute to the underfunded pension schemes of BHS, a store chain he sold for £1 a year ago. The Pensions Regulator needs to extract more than the £80 million he has reportedly offered so far.
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Worldpay defrothed: The Royal Bank of Scotland sell-off has been a great success. Not the sale of taxpayers’ stake in the bank. We are still waiting for that. However RBS’s old payments division joined the market instead last year.
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The Daily Telegraph
Tesco seeks deal to buy O2 out of joint venture for mobile push: Tesco is planning to take advantage of the fallout from Hutchison’s £10.25 billion takeover of O2 with a big push in the U.K. mobile market, seeking to expand sales outside the tough groceries market.
Act now to stop global crisis, IMF warns governments: The world is heading towards “economic derailment” unless policymakers make tough choices to get the recovery back on track, a top International Monetary Fund official has warned.
Internet shopping under pressure as warehouse space dwindles: U.K. retailers’ ability to deliver goods to customers is coming under increasing pressure because of a squeeze on distribution warehouse space, new research has found.
Channel 4 Chief attacks predecessors over support for privatisation: The Chief Executive of Channel 4 has launched a stinging attack on Lord Grade and Luke Johnson, the broadcaster’s former Chief Executive and former Chairman, over their support for privatisation, branding them “the flip and flop of British broadcasting”.
BT’s Boss turns to fibre in effort to rule out spectre of separation from Openreach: Gavin Patterson, BT’s Chief Executive, has promised to plough millions of pounds into connecting homes and businesses with fibre-optic cables, suggesting a strategic shift from copper-based technologies.
BAE and GKN land contracts to build America’s new stealth bomber: Two of Britain’s leading engineers will work on America’s new stealth bomber, one of the biggest defence projects in the world.
Cut tax on North Sea to rescue oil and gas sector, PwC says: A tax cut on North Sea firms would rescue the U.K.’s oil and gas sector and safeguard future revenues for the Treasury, PwC has claimed.
The Questor Column:
Foxtons shares still looks exposed to further falls: Foxtons, the London-focused estate agent, has disappointed investors ever since it floated three years ago and there is no rush to buy the shares after profits slipped 2.6% lower in annual results on Tuesday. The company is facing the dual challenges of a slowing London property market and increased competition from low-cost competitors. London residential property sales fell almost 10% in 2015 and are now almost a third lower than the long-term average. The situation in central London, where Foxtons is focused, is even worse. Foxtons is combating this by focusing branch openings on suburbs such as Croydon, Surbiton and Walthamstow, adding seven branches to bring the total to 58. However, lower activity meant pretax profits fell £1.1 million to £41 million, despite a 4% increase in revenue to £149.8 million. Foxtons has previously managed to offset the sluggish market for property sales with steady growth from the lettings market. However, lettings profits fell by about £1 million, despite a 2.3% increase in revenue. Last time Questor looked at the shares the verdict was that they were overvalued and gave a target price of 149p. We are about there now, but fresh competition from a raft of online-only estate agents will put further pressure on fees as we enter the late stages in this current housing bubble. Avoid. Foxtons at 159¾p+1½p. Questor says “Sell”.
Close Brothers is a banking share that has delivered for investors: Close Brothers, the financial services group, has enjoyed rapid growth over the past six years as it stepped into the breach left by larger banks and provided finance to smaller businesses. But market turmoil and a slowdown in lending revealed in Tuesday’s first-half results sent the shares 6% lower. A stable U.K. economy kept bad debts low at 0.6%, and when combined with a steady banking business this allowed half-year group operating profits to rise 2% to £109 million. The expansion over the past six years has been rapid, with the loan portfolio increasing from £2.4 billion in 2009 to almost £6 billion at the end of January. It was not all good news as the Winterflood securities trading division continues to struggle from long-term trends towards lower retail share volumes and more competition for what remains. Winterflood reported a 6% drop in trading volumes resulting in operating profits falling to £6.8 million, down from £10.3 million a year earlier. Close Brothers is one of the few banks that has delivered for investors. The interim dividend was increased by 5.2% to 19p, going ex-dividend on March 16 and payable on April 20. The shares are not immune to a downturn, falling more than 50% in both 2008 and early 2000s when the loan default rate jumped to more than 2.5%. Questor thought the shares looked a bit expensive when Close Brothers was last looked at (Sell, £14.91, November 2014). Now 13% lower and trading on 11 times forecast earnings they are better value and are upgraded to a hold. Close Brothers at £12.98 -86p. Questor says “Hold”.
The Guardian
Volkswagen may cut jobs to pay for emissions scandal: Volkswagen may have to cut jobs in the U.S. and Europe, depending on how much it is fined for manipulating diesel emissions tests, a company official has told workers at its German headquarters.
A third of £1 million-plus homes paid for in cash since 2011, study shows: About a third of homes sold for £1 million or more have been paid for in just cash in the last five years, as property millionaires splashed out more than £63 billion, according to research.
Property service charges soar to average £2,777 per year for new-builds: Buyers of apartments in new-build towers not only have to pay sky-high prices but also face soaring annual service charges that now average £2,777 a year, according to new research.
Jailed Libor trader blocked from Supreme Court appeal: Tom Hayes, a former UBS and Citigroup trader serving an 11-year jail sentence for conspiring to rig Libor global interest rates, has been blocked from appealing to the Supreme Court against his conviction.
Withhold bankers’ bonuses for a decade, says Barclays man: Bankers’ bonuses should be withheld for up to a decade to give Managers a longer-term view of their business, the new deputy Chairman of Barclays has said.
Biggest fall in Chinese exports in seven years hits mining shares: Shares in mining companies fell heavily in the City on Tuesday after the biggest fall in China’s exports in almost seven years rekindled concerns about the impact of a slowdown in the world’s second-biggest economy on the rest of the world.
Daily Mail
Firms must spell out Brexit costs to investors, corporate watchdog says: British companies have been told they must warn investors if leaving the European Union poses a threat to their business.
Barclays investors demand dividend cut showdown after pay-outs are cut in half: Disgruntled Barclays investors have demanded to speak with the bank’s deputy Chairman over its decision to slash the dividend in half.
Footsie’s new kid Worldpay back in the black as it posts £19 million profit: Worldpay has posted a £19 million profit in its first year as a listed company on the stock exchange.
Leicester City boosts the bookies as newly-combined giant Paddy Power Betfair sees ‘encouraging’ start since merger: The Boss of newly-combined gambling giant Paddy Power Betfair yesterday hailed an ‘encouraging’ start for the enlarged company after a topsy-turvy year for punters.
Volkswagen staff still get a bonus despite crisis sparked by emissions scandal: Scandal hit Volkswagen told staff they will be handed a ‘well-earned’ bonus for the year in which the firm was caught cheating over the emission levels from 11 million diesel engines.
Heathrow’s masterstroke in race for new runway as Olympics supremo and former Treasury advisor is made airport Chairman: Heathrow has achieved a coup in its battle to build a third runway by appointing as its Chairman the millionaire banker credited with delivering the London Olympics.
Bus and train giant Stagecoach loses £11 million tax case as it is accused of ‘clear tax avoidance’: Stagecoach has been rapped for attempting an £11 million tax avoidance scam.
Daily Express
Tesco’s turnaround gathers momentum as it wins back customers: Tesco’s turnaround has gathered momentum as cheaper prices helped it win back customers and stem the pace of falling sales.
Bank of England Boss savaged by MP over ‘speculative’ and ‘damaging’ pro-Europe claims: The Bank of England Chief has been accused of making “speculative” pro-Europe claims, which have damaged the institution and his own reputation.
George Osborne could still raid pensions in the Budget after tax relief cuts u-turn: George Osborne has promised not to take an axe to relief next Wednesday, but experts have warned he could slash benefits instead in a bid to save money.
Greece faces financial meltdown again amid threat of end of Euro: Greece is heading towards another financial meltdown in a repeat of last summer’s fiasco that could see them crash out of the euro.
The Scottish Herald
Entrepreneurial Scotland links up with Business growth Fund to boost activity in country: Entrepreneurial Scotland has agreed a partnership with the Business Growth Fund which the organisations hope will help encourage the development of a more enterprising country.
Lyon & Turnbull vice-Chairman to acquire controlling stake in oldest U.S. auction house: Paul Roberts, the vice-Chairman of Edinburgh-based Lyon & Turnbull, is acquiring a controlling interest in the oldest auction house in the U.S., Freeman’s of Philadelphia.
Aberdeen engineers target North Sea decommissioning market amid crude price slump: Two Aberdeen oil and gas engineering consultancies have formed a partnership that will focus on the burgeoning decommissioning market in areas such as the North Sea.
Merchant banking group reports progress in challenging market: Close Brothers, the London-based merchant bank, said its half-year performance was solid in the face of more challenging market conditions as it posted a 2% rise in adjusted operating profit to £111.2 million.
Murray International joins dividend elite: Murray International has joined the ranks of investment trusts which have lifted their dividend pay-out for10 successive years or more.
The Scotsman
Edinburgh city centre hotel looks for buyer: A city centre hotel in Edinburgh has been put up for sale by Whitbread and the syndicate of private investors which jointly own it.
Menzies profits tumble after ‘challenging’ year: Logistics group John Menzies has seen its annual profits fall more than 41% after counting the cost of “operational issues” at Gatwick airport.
Architect Keppie promotes Peter Moran to MD: Keppie Design has announced a change in leadership at the Scottish architectural practice, which once counted Charles Rennie Mackintosh as a principal.
Craneware hikes dividend after healthy rise in profit: Edinburgh-based software developer Craneware announced a 19% increase in its half-year dividend after posting a rise in earnings.
City A.M.
Woodford backed telecoms vehicle poaches Goldman banker as it posts maiden dividend: Telecoms takeover vehicle Zegona, set up last year by two former Virgin Media Executives and backed by investor Neil Woodford, has poached Goldman Sachs banker Menno Kremer to grow its business across Europe.
Moody’s warns Europe’s commercial real estate markets are facing risks from Brexit, refugee crisis and lower growth in China and emerging markets: Europe’s commercial real estate (CRE) markets are facing increasing risks, not least from the U.K.’s EU referendum, according to a new report by Moody’s Investors Service.
Citigroup share price tumbles after company announces 15% first-quarter drop in revenue from trading in equity and fixed-income markets: Citigroup’s shares fell after its Chief financial officer said revenue from trading in equity and fixed-income markets is expected to drop 15% in the first quarter of 2016.
Simon Trim announced as new Sporting Index Group Chief Executive: Simon Trim has been named as the new Chief Executive of the Sporting Index Group, the world’s largest sports spread betting business.
Supermarkets abandon more schemes as pressure mounts on Sainsbury’s, Morrisons, Asda and Tesco: The number of developments ditched by Britain’s supermarket titans has jumped since the first half of the year, with construction and planning applications also in decline, new research shows.
Goldman Sachs warns recent oil rally won’t last and prices must fall to rebalance the market: Goldman Sachs warned the recent rally in oil prices is likely to prove short-lived, as it said they must fall to bring balance to a market drowning in oversupply.
