Share Tips, Bids and Rumours
Shire calls halt to $50 billion acquisition spree: Shire has called a halt to the $50 billion acquisition spree that has transformed the London-listed drugmaker over the past three years as it shifts focus to integrating assets and launching new products.
Newspaper Summary
The Times
Traders bet on interest rate cut as world’s shares dive: Worries about a perilous deflationary spiral and global slowdown gripped financial markets, with shares plunging, government borrowing costs hitting an all-time low and many bond traders now betting that U.K. interest rates will have to be cut.
British steelworks win battle to bid for Hinkley Point work: The builder of the £18 billion Hinkley Point C nuclear power station is to tell its main contractor Areva to look at subcontracting major works for the plant to specialist British steelworks such as Sheffield Forgemasters, The Times has learnt.
China puts skids on Jaguar despite record global sales: Jaguar Land Rover is delivering record numbers of cars but the drop in high-margin sales to China has thrust profits into reverse.
SFO examines Barclays hedge fund profits: Fraud investigators are examining the activities of a Barclays hedge fund that is alleged to have profited from using confidential information to make large profits on Libor “low-balling” at the height of the financial crisis.
HSBC scraps pay freeze after outcry from staff: HSBC has dropped plans to freeze the pay of thousands of branch staff this year after furious employees complained that they were not going to get the rises they had been promised.
Morgan Stanley fined $3.2 billion over sale of toxic bonds: One of Wall Street’s largest investment banks has become the latest to settle claims over its sale of bonds backed by toxic mortgages in the run-up to the financial crisis, paying more than $3 billion in fines and compensation.
Strong demand for homes boosts Grainger: The U.K.’s largest listed landlord has reported strong demand for homes in its private rental sector as it embarks on an overhaul of its business structure.
The Independent
U.K. companies must reveal gender pay gap under new plans: Britain’s banks and other large companies will be made to reveal how much more they award male employees in pay and bonuses, under Government plans to close the gender pay gap and tackle inequality.
Fears buy-to-let landlords will drive up house prices ahead of stamp duty hike: Nearly 75% of house builders said they expect to see a boost in sales to buy-to-let investors in the coming months, according the Residential Market Survey by the Royal Institution of Chartered Surveyors.
French toast record alcohol exports thanks to cognac and champagne: Champagne and cognac were more popular abroad than Chanel No 5 and Yves Saint Laurent’s Opium in 2015, after a record year for the French wine and spirits industry.
Hornby heads off the rails as shares slide: Shares in Hornby more than halved in value after the beleaguered model railway company warned that its full-year losses would be deeper than expected.
Financial Times
Man Utd on target after Adidas boost: Manchester United may be struggling on the pitch this season but the club’s financial performance in the last quarter was right on target.
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RBS poaches JPMorgan banker to head Coutts: Royal Bank of Scotland has poached a senior banker from JPMorgan Chase to head its private bank Coutts, as Michael Morley steps down after seven years at the helm.
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Maersk’s stumble highlights sluggish state of global trade: When AP Moller-Maersk warned this week that the Danish conglomerate was enduring business conditions in container shipping markedly worse than during the 2008 financial crisis, it appeared to fit into a wider pattern.
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Carl Icahn and John Paulson secure AIG board representation: The activist investors who have called on AIG to break itself up have secured seats on the insurer’s board after Directors struck a deal to avoid a damaging fight with shareholders.
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Lending Club announces $150 million share buyback: Lending Club, the world’s biggest marketplace lender, announced a share buyback programme and stressed its durability in a downturn on Thursday, as it attempted to turn round its free-falling stock price.
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Mylan defends $9.9 billion Meda deal after shares fall: The Chief Executive of Mylan has defended the takeover of Sweden’s Meda after investors responded with a sharp sell-off of the drugmaker’s shares.
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Walgreens threatens to abandon collaboration with Theranos: Theranos has been warned by its partner, the U.S. pharmacy chain Walgreens, that it could pull the plug on their high-profile collaboration unless the blood testing start-up rectifies failings at one of its laboratories, according to people close to the matter.
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L’Oreal’s luxury arm spurs 9% sales rise: French cosmetics group L’Oreal outstripped analysts’ expectations in the fourth quarter, spurred on by the North American market and strong sales of its luxury products.
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Thomson Reuters to auction IP and science business: Thomson Reuters has put its intellectual property and science business up for sale in an auction that analysts say could fetch $3 billion, as it focuses more on financial information products and services.
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Uber to pay $28 million over ‘safe rides’ suit: Uber has agreed to pay $28.5 million to settle a class-action lawsuit over its “safe rides” fee and its safety-related advertising, the latest legal milestone in a series of cases affecting the ride-hailing business.
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Nokia Chief Rajeev Suri warns of challenging start to new year: Nokia warned of a challenging start to the year in the telecoms equipment business, as global economic uncertainty causes customers to rethink their spending plans and growth in China slows.
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Lex:
A crude rule of thumb: Market economics boils down to the interplay of supply and demand. Yet neither supply nor demand curves can be drawn with confidence. That would require knowing what everyone would do at every price. Only single trades can be observed.
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Societe Generale: Paris mismatch: On Thursday, Societe Generale, enacting the stereotype of Gallic infidelity, tried to woo jilted shareholders back with the financial equivalent of flowers and a contrite note: a two-thirds increase in its 2015 dividend and a 10-percentage point rise in its payout ratio.
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Pernod Ricard: back in the U.S.A: For years multinationals like Pernod Ricard piled into Asia and Africa, figuring that by introducing cohorts of the middle class to the delights of Chivas Regal and Malibu, they could grow sales faster than GDP and reduce dependence on large but mature markets.
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Lombard:
. . . Continental drift: Henderson Group lifted assets under management 13% to £92 billion and underlying profits 17% to £220 million in 2015. Yet investors marked the shares down 7% on Thursday. Ashmore stock fell just 4.5%. But the rival active Manager saw assets retreat £9.5 billion to £49.4 billion and underlying half-year earnings slide £28.3 million to £68 million.
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. . . Egg on Facebook: Lombard reached out to Facebook Director Marc Andreessen* after he tweeted “Anti-colonialism has been economically catastrophic for the Indian people”. He was cross because a regulator had blocked Free Basics, Facebook’s stripped down pro bono internet service. A Twitter storm ensued and Mr Andreesen apologised.
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The Daily Telegraph
Bank of Japan loses control as QE hits the limits: The Japanese yen has become the lightning rod of extreme stress in the global financial system, rocketing this week in violent moves that threaten to plunge Japan back into deep deflation and overwhelm the experiment of “Abenomics”.
O2 customers to have their Tube journeys tracked by advertisers: Millions of O2 customers will have their Tube journeys and browsing activity tracked from so that marketeers know where best to put their adverts on capital’s transport network.
Uber to pay $28 million to settle lawsuit over passenger safety measures: Uber has agreed to pay $28.5 million to settle a lawsuit brought by customers who alleged the ride-hailing service misrepresented the quality of its safety practices and the fees it charged passengers.
SuperGroup Founder sells £53 million stake to fund divorce: SuperGroup Founder Julian Dunkerton is selling a 4.9% stake worth £53 million in his first share sale since the fashion retailer listed on the stock market six years ago.
Starwood heads to Edinburgh with W Hotel: Starwood Hotels & Resorts is to take its W Hotels brand to Scotland after agreeing a deal to operate a new hotel being built in Edinburgh city centre.
Enterprise Inns Boss dismisses fears over £350 million junk bond: The Boss of Britain’s biggest pub operator has insisted investor fears over a looming £350 million debt refinancing are misplaced and argued the company’s shares have been swept up in a wider sell-off in bond and stock markets.
Future of print Independent in doubt as Johnston Press confirms £24 million talks to buy the i newspaper: The Independent is on the brink of closing its national print titles after thirty years in favour of moving to an online-only version.
The Guardian
Stock markets hit by global rout raising fears for financial sector: Panicked investors sought refuge in the safe havens of gold and government bonds on Thursday as a fresh spasm of global selling sent share prices crashing in Asia, Europe and North America.
Janet Yellen hints further rate rises on hold amid plunging markets: The chair of the Federal Reserve has dropped the broadest of hints that it has put future U.S. interest rate increases on hold following the plunge in global stock markets since the start of the year.
Sainsbury’s axes two-for-one offers amid consumer spending concerns: Sainsbury’s has become the first of the major supermarkets to commit to phasing out controversial multi-buy deals in favour of lower everyday prices after mounting evidence that shoppers find them confusing and misleading.
Fyffes accused of disrespecting plantation workers’ rights: The Dublin-based banana company Fyffes has been accused of having “no respect” for workers’ rights, amid allegations that staff on Central American fruit plantations are being serially mistreated.
Boeing’s accounting of 747 and Dreamliner aircraft investigated: The U.S. Securities and Exchange Commission is investigating whether Boeing properly accounted for the costs and expected sales of two of its best known jetliners, Bloomberg reported on Thursday.
Daily Mail
Russian tycooons Alexander and Evgeny Lebedev in talks to sell the i newspaper for £24 million to Johnston Press: Russian oligarchs Alexander and Evgeny Lebedev are eyeing up a sale of their cut-price national newspaper the i for around £24 million.
Government borrowing costs hit record low of 1.22% amid speculation BoE may not raise rates until end of the decade: U.K. Government borrowing costs hit a record low as Sweden’s central bank cut interest rates deeper into negative territory.
Clarks set to axe 170 head office jobs as footwear firm is hit by slowing sales and increasing competition: Footwear chain Clarks has taken the axe to costs and is culling more than one in ten jobs at its head office.
Thomas Cook sees bookings and revenues fall as terror attacks deter holidaymakers: Travel firm Thomas Cook saw its bookings and revenues fall at the end of last year as terrorist attacks in Paris, Tunisia and Egypt deterred holidaymakers from heading abroad.
Rio Tinto slumps to loss and axes progressive dividend policy as miner feels the pinch from collapsing commodity prices: Mining giant Rio Tinto reported a loss for 2015 and kept its dividend flat as its results were damaged by a rout in iron ore, copper and aluminium prices amid a slowdown in demand from China.
Fearful investors seeking safe havens send gold price to one-year highs at nearly $1,250 as global stock markets slump: The price of gold has climbed to a one-year high as fearful investors pile into safe havens in the face of falling global stock markets.
Daily Express
EU on brink of recession: Now French bank shares plummet 12% in a day: France could tip the ill-fated Eurozone into recession as one of country’s biggest bank watched its share price sink by as much as 12% in yesterday‘s trading.
The Scottish Herald
Chivas laments China downturn as sales of Scotch tumble: Drinks giant Pernod Ricard has provided further evidence of the challenges whisky makers face in China after suffering a slump in sales of Scotch in what is a key growth market for the industry.
Manufacturers told they can help country stop wasting wind energy: Renewable energy specialist Flextricity has developed a product it reckons will help firms make profitable use of wind farm output that might otherwise go wasted.
North Sea regulator attempts to boost flagging interest in exploration: The head of the new oil and gas regulator has said it will revamp the North Sea exploration licence system to try to boost flagging activity levels amid the crude price plunge.
Perth bakery wins Tesco deal: Tower Bakery, the Perth-based baker, has signed a deal with Tesco to supply a selection of stores across Perth, Dundee and Dunfermline.
Armoured vehicle maker sees sharp profit fall: Penman Engineering, Scotland’s armoured vehicle maker, is hopeful of a sales recovery this year after reporting sharp declines in turnover and profit in its first year under new Ownership.
Dundee Waterfront development moves ahead: Robertson has been chosen as preferred developer for a £40 millionillion development of flats, office space and hotel next to the new V&A Museum in Dundee.
Surge in international passenger numbers for Glasgow and Edinburgh airports: Glasgow Airport has enjoyed its busiest January on record, with passenger numbers up by 13.5% on the same month of 2015.
The Scotsman
Tech group SwarmOnline takes over digital agency: Glasgow technology company SwarmOnline is acquiring Edinburgh digital agency Open Platform for an undisclosed sum in a bid to expand in the area of oil and gas as well as financial services.
East Lothian Council contract bolsters Watts: Watts, the surveying, project management and cost consultancy, has hailed a solid start to 2016 after its Edinburgh office secured a “significant” contract with East Lothian Council.
House prices in Scotland continue to rise as supply falls: House prices are continuing to rise as the supply of property falls, according to a new report.
Demand for Port Ellen whisky soars 30 years after distillery closure: It last produced whisky more than 30 years ago, but bottles from one of Scotland’s most famous ‘silent’ distilleries continue to be highly-prized by collectors and aficionados of the drink.
British Gas and EDF price cut falls short of expectations: Scottish Gas Owner British Gas and EDF Energy are the latest of the Big Six providers to cut gas prices in the wake of falling wholesale costs, snipping £32 off the average bill.
City A.M.
Sales of £10 million-plus London homes drop by a third as tax changes bite: Sales of London’s priciest homes slumped by a third last year as even the wealthiest investors balked at paying the higher rate of stamp duty introduced by George Osborne’s tax reforms.
Shares in Candy Crush’s new Owner Activision Blizzard plunge by 16% as revenue miss overshadows Call of Duty success: Shares in U.S. video games maker Activision Blizzard tumbled by more than 16% in after-hours trading, after the company missed revenue and profit expectations in the final quarter of 2015.
JP Morgan Chase shares price rises after Chief Executive Jamie Dimon buys 500,000 shares worth $26.5 million: JP Morgan Chief Executive Jamie Dimon has bought 500,000 shares in the bank, worth roughly $26.5 million, City A.M. understands.
Groupon shares shoot up by almost 20% after company reveals it swung back into profit last year: Shares in e-commerce company Groupon shot up by almost 20% in after-hours trading after the firm revealed it swung back into profit in 2015.
Brent crude oil price bounces on Opec rumours: Having hovered perilously close to $30 per barrel, Brent crude bounced, after rumours emerged that the Organisation of Petroleum Exporting Countries (Opec) was preparing to “co-operate” on a production cut.
Dairy Crest shares churn on losses from in its dairies division: Dairy Crest shares fell after the company said losses in its dairies division continued ahead of its sale to German group Müller.
PepsiCo beats revenue estimates as sales rise in North America: PepsiCo, the U.S. Owner of brands ranging from Pepsi to Tropicana and Quaker Oats, reported revenue of $18.59 billion (£12.86 billion) for the fourth quarter of 2015.
Portuguese borrowing costs surge to highest since 2014: Portuguese government borrowing costs have shot up to their highest level since 2014. The interest rate on the government’s 10-year bonds rose above 4.4% before falling back to 4.1%. It was 2.5% at start of the year.
Tate & Lyle share price loses sweetness after it warns of lower profits: Shares in Tate & Lyle were left a little less sugary, after the Splenda sweetener-maker warned its full-year profits would be hurt by falls in the value of the Mexican peso and Brazilian real.
BBVA shakes up fintech venture fund, spinning out into independent Propel Ventures, doubling fund and setting up London office: Spanish bank BBVA, which recently ploughed £45 million into U.K. digital challenger bank Atom, has more than doubled its war chest for investing in fintech startups and will set up shop in London in a shakeup of its venture investment strategy.
Business landlord Workspace sells five London buildings for £64 million: Small business landlord Workspace has sold off five industrial buildings across London for £64 million as it looks to raise cash to invest back into new schemes.
