The Times
Nuisance call blocker fined . . . for making nuisance calls: A company that offered its customers protection against the deluge of nuisance calls has itself been fined £50,000 for making unsolicited, and in some cases threatening, calls to consumers.
Cheap milk is costing us our jobs, say farmers: Hundreds of dairy farmers will abandon the industry by the end of the year because of the low price of milk, forcing supermarkets to rely more on imports, according to a farmers’ leader.
Oil minnow turns to new suitor: A small oil company with operations in Lithuania and Oman has spurned the overtures of a Kazakh oligarch and entered exclusive talks with Nostrum Oil & Gas.
Britons let better times roll as carpets and furniture sales rise: A wave of consumer confidence is boosting sales of big-ticket items such as furniture and carpets as Britons put years of tough finances behind them.
Peer cashes in on luxury retail’s new domino effect: The peer responsible for bringing Domino’s Pizza to Britain is selling a property in Mayfair to an entrepreneur for £80 million.
Market cries out for more houses to sell: The number of homeowners putting their properties on the market fell dramatically in July, threatening to push up house prices still further.
Ofcom plays referee in football row: BT proudly proclaimed that it had scored a spectacular goal when it knocked Sky and ITV out of the bidding for European football rights, but it still found itself on the wrong end of the regulator’s whistle.
The Independent
Berkeley Founder Tony Pidgley gets £23 million payday – with more to come: Tony Pidgley, the Founder of the housebuilder Berkeley, added fuel to concerns over soaring corporate pay yesterday after landing a huge £23.3 million payday for last year – with the potential for another £26 million bonanza for this year.
Network Rail fined £2 million for failures that led to travel chaos: Network Rail has been hit with a £2 million fine after passengers experienced months of chaos at London Bridge station during upgrading works earlier this year. The penalty was imposed by the Office of Rail and Road (ORR) after an investigation found Network Rail in breach of its licence conditions in 2014-15.
Financial Times
U.K.’s oldest private bank C. Hoare & Co finally goes digital: The U.K.’s oldest private bank, C. Hoare & Co, is finally edging into the 21st century with the launch of contactless cards and a mobile banking app.
Sheffield sets up finance broker to take on high interest lenders: Sheffield is tackling the scourge of high interest lenders by setting up its own finance broker. City residents can from Monday use Sheffield Money, a council-funded service that will advise on alternative loans and bank accounts.
First approved Chinese herbal cure to hit British high street: An Oxford-based biotech company is preparing to launch the first traditional Chinese medicine which has approval from the U.K. drugs regulator in a breakthrough for a type of therapy long consigned to the margins of western healthcare.
Second senior Executive leaves IG Group: Chris Hill, Chief financial officer of spread betting company IG Group, has become the second senior Executive in a month to announce his departure from the group, saying he will leave early next year for FTSE 100 fund Manager Hargreaves Lansdown.
Noble accounts cleared but jobs to be cut: Noble Group, the commodity dealer attacked over its accounting practices, is to cut 16% of its staff and seek asset sales or new financing deals as it continues to face difficult trading conditions.
Gazprom’s China contract offers no protection against low prices: Gazprom’s 30-year contract for gas supplies to China was based on an optimistic view of the oil market and offered no protection in the event of a prolonged period of low prices, the Russian company said on Monday.
Bill Gates joins $120 million fundraising for Editas Medicine gene start-up: Bill Gates and the venture capital arm of Google have participated in a $120 million fundraising for Editas Medicine, a biotech group focused on a nascent area of medical science that seeks to use “gene editing” to tackle serious diseases.
Noble shares jump as PwC backs accounting practices: Shares in Noble Group jumped on Tuesday after the commodities trader announced cost cuts and said it was seeking asset sales or new financing as it fights back against short sellers’ accusations.
Kraft and Heinz sales fall short pre-merger: Kraft Heinz said that revenues in the final quarter before their merger dropped at both companies, as investors cast a keen eye on the performance of the latest Warren Buffett-3G Capital partnership.
Twitter shares rise 7% as company insiders buy stock: Twitter’s interim Chief Executive and other company insiders have bought about $1.5 million of stock in the messaging platform, with their vote of confidence helping to push the shares up more than 7% on Monday.
Lex:
Google – hacking the structure: Google’s shares rose by that amount, or 7%, in after-hours trading on Monday when the company revealed it was creating a new holding company called Alphabet, with subsidiaries ranging from the core search and advertising business to Nest, which makes thermostats, Fiber, the high-speed internet provider, and Calico, the biotech company. At first sight, this is absurd. The balance sheet and cash flows will be unchanged. Larry Page, Chief Executive, calls it “cleaner”. The risk is it creates a mess, particularly in human resources. Further down the organisation, life gets more compartmentalised. It is not obvious that working in a silo at Company XYZ, “an Alphabet subsidiary”, is as attractive as working on complex issues across Google. There is one big advantage. The core Google business may have been relegated to just another subsidiary and it may have lost Mr Page as day-to-day Chief Executive. But he has seemed more interested in new projects for some time. With a more dedicated management team, the performance of Google could improve. And with separated financials, the market can finally see what are already reputed to be fearsome margins.
Warren Buffett: with precision: On Monday Mr Buffett agreed to pay $235 per share for Precision, a 21% premium to Friday’s price. But slowing oil and gas production has hurt Precision’s business and, before the Berkshire approach, its shares had fallen 30% since last June. The $235 deal price is 15% below the high reached then. The Berkshire Hathaway buyout gives some relief to the sting that shareholders have felt in recent months. But the deal smacks of the classic Buffett arbitrage — a buyer with a decades-long horizon exploiting a short-term dislocation. Boeing expects demand for commercial aircraft to expand steadily because of the introduction of more efficient designs and increased global passenger numbers. It predicts that 38,000 jets need to be delivered in the next 20 years (against 21,000 in service now). But while its long-term health is tied to aerospace, its forged products unit sells to oil and gas companies, which have been hit by low commodity prices. Oil and gas pipe sales were down 33% in the first quarter. For the full-year, Precision expects group revenues and earnings to be flat. Based on Precision’s own earnings forecast for 2016, Mr Buffett is paying 18 times forward earnings. In exchange he will own the dominant provider of castings and forged products for the aerospace sector. And the company has industry leading operating margins of just under 30%.
Noble Group: trading up: Hong Kong-based Noble Group. Like most companies, it uses international accounting standard IFRS13 to calculate the fair value of the futures and options used in its commodity trading business. International accounting standards require regular revaluation of these derivatives to establish a fair value. Noble’s commodity derivatives have begun to dominate its balance sheet. Their fair value jumped by half last year, to 90% of its equity. Under pressure to provide more clarity, management hired accountants PwC to corroborate Noble’s claims that it has adhered to IFRS13. PwC did this on Monday, as Noble announced interim results. Another complaint has focused on valuation adjustments made to some of Noble’s associated companies. Noble devoted six pages in its presentation to this topic, especially Australia-listed Yancoal. Noble has a much higher asset valuation on its balance sheet for Yancoal than implied by the company’s depressed share price. Noble argues that an 8% free float does not reflect Yancoal’s true worth.
Lombard:
FCA flap poses risk to Clydesdale float stakes: National Australia Bank is expected to demerge its U.K. subsidiary Clydesdale this autumn. But the Financial Conduct Authority could be poised to put a damper on the transaction — and on the shares of bigger banks — by fuelling compensation claims for the mis-sale of payment protection insurance. Calculations on a bus ticket suggest that Clydesdale could be worth £1.5 billion-£2 billion. Rising PPI costs could chip away at that valuation, particularly if the FCA widens the scope for claims in new guidance before the autumn. FCA Boss Martin Wheatley will be leaving in September to the accompaniment of popping champagne corks in the put-upon City. The Chancellor ousted the so-called Grey Vampire as part of a move to halt regulatory mission creep. As Mr Wheatley flaps off into the sunset — or the moonrise, if that’s more appropriate — he might feel tempted to interpret the Plevin ruling harshly as a parting shot. The government should be alert to this danger, even as it considers candidates to run the FCA, such as Minouche Shafik of the Bank of England.
Herb on the street: The private biotech group, which quit Aim in 2009, has, however, won U.K. approval to sell the treatment, derived from an oriental shrub, through Holland & Barrett. The venerable retailer specialises in products whose efficacy physicians often doubt, but which should not harm you either. Official disapproval leaves traditional medicine to flourish on the illicit margins of healthcare. A friend who toils as an economist says he conquered alcoholism thanks to a traditional Gabonese healer. She fed him a psychedelic Iboga root and oversaw two days when his grasp on reality was even weaker than that of a U.S. biotech investor. His trip to visit the ancestor spirits, who in this case originate from Huddersfield, did the trick. But Lombard recommends consulting a qualified doctor in preference to dabbling with hallucinogens.
The Daily Telegraph
Carphone Warehouse hackers ‘used traffic bombardment smokescreen’: Hackers bombarded Carphone Warehouse with online traffic as a smokescreen while they stole the personal and banking details of 2.4 million people, according to sources with knowledge of the incident.
Germans and Slovaks stand ready to scupper Greek deal as Athens insists agreement is near: Eurozone creditor governments raised fresh concerns about the viability of a new Greek rescue package on Monday despite hopes from Athens that an agreement to unlock vital rescue funds was inching ever closer.
Russia crisis deepens as economy suffers worst recession in six years: Russia’s economic woes deepened on Monday as a collapse in oil prices and western sanctions sent the economy spiralling into a 4.6% contraction in the second quarter of the year.
Alibaba agrees £4.4 billion tie-up with Chinese electronics giant Suning: Chinese Internet giant Alibaba is to pay 28.3 billion yuan (£3 billion) for a near-20 percent stake in consumer electronics retailer Suning, the two companies have announced.
Bank of England ‘dove’ admits there was case for August rate hike: Bank of England policymaker David Miles has said there was a reasonable case to vote for higher interest rates at his final policy meeting last week but did not find the arguments conclusive.
Former Fed Chief Alan Greenspan warns of bond market bubble: The world is entering a bond market bubble, the former Chairman of the Federal Reserve has warned.
Warren Buffett seals his biggest ever takeover with $37.2 billion Precision Castparts deal: Warren Buffett’s Berkshire Hathaway has struck its biggest ever deal with a $37.2 billion (£24 billion) takeover of U.S. industrial group Precision Castparts.
The Guardian
China devalues yuan by 2% to boost flagging economy: China has devalued its currency to boost flagging exports in a move that risks deepening the global currency war.
Standard Chartered quits controversial Carmichael coalmine in Queensland: Standard Chartered bank is pulling out of a vast coalmining project in Australia that critics say threatens endangered species and could wreck international efforts to contain global warming.
Amazon leases warehouse in prime position to deliver food to London: Amazon has moved a step closer to launching a grocery service in the U.K., taking over the lease on a warehouse previously used by Tesco.
Co-op bank expected to escape FCA and Bank of England fines: The Co-operative Bank is expected to escape a hefty fine after a long-running investigation into its near collapse two years ago.
Daily Mail
Bra tycoon Michelle Mone to review how government can help business start-ups in disadvantaged communities: Bra tycoon Michelle Mone has been appointed to carry out an independent review into how to encourage entrepreneurs and business start-ups in disadvantaged communities and areas of high unemployment.
Clydesdale and Yorkshire Banks lumped with hefty PPI payouts: Clydesdale and Yorkshire Banks could have to set aside another £500 million this year for mis-selling scandals.
Oil and gas producer Nostrum makes £36 million takeover bid for embattled rival Tethys Petroleum: Oil and gas producer Nostrum has made a £36 million bid for embattled rival Tethys Petroleum sending the shares up 20%.
Prudential’s new CEO can boast profits are up 14% when he attends first shareholders’ meeting: Prudential’s new Chief Executive Mike Wells should have good news for his shareholders when he introduces himself at his maiden financial results.
Independent Oil & Gas shares nosedive after its ‘billion-dollar backer’ pulls out of major investment: Independent Oil & Gas shares were sent into free-fall after the explorer revealed it lost its number one backer thanks to the declining price of oil.
Greece in talks to finalise a new multi-billion euro bailout deal as crucial ECB repayment looms: Greece and its creditors were trying to finalise a new multi-billion euro bailout deal needed to meet a crucial repayment to the European Central Bank this month.
AstraZeneca teams up with Inovio Pharmaceuticals to develop DNA-based treatments for cancer and infectious diseases: AstraZeneca’s biological research and development arm MedImmune has signed up to work with Inovio Pharmaceuticals on DNA-based immunotheraphy treatments for cancer and infectious diseases.
Daily Express
Esure shares hit wrong note: About £100 million was wiped from the value of motor insurer Esure after half-year profits were dented by rising accident claims.
Stansted soars as passenger numbers are boosted: Stansted Airport had its busiest July for seven years as the launch of three new Thomas Cook long haul flights to Orlando, Las Vegas and Mexico helped passenger numbers take off 12.5% from the previous year to 2.19 million.
Legal & General helps Leeds: Legal & General has launched a £162 million investment in a regeneration project in Leeds to “help bring the Northern Powerhouse to life”.
‘Beer boom’ fuels rise in U.K. brewers: A new brewery is opening up in Britain every other day following a “surge” over the past two years.
Soaring cost of moving up the property ladder: Home movers paid more than £50,000 extra on average in 2015 to take their next step on the property ladder than they would have done five years ago, a report has found.
Serco shows signs of revivial: Scandal-hit outsourcing firm Serco is expected to announce solid half-year results as its turnaround begins to take root.
The Scottish Herald
Old Mutual Global Investors moving into prime Edinburgh address: Old Mutual Global Investors is opening an office in Edinburgh after hiring a team displaced from Ignis Asset Management in the takeover by Standard Life Investments.
Law at Work adds staff ahead of English push: Law at Work has hired several new staff as part of its efforts to expand into England.
Albion backed by pension fund for renewable projects: Albion Community Power has raised £10 million from Greater Manchester Pension Fund (GMPF) to drive its development of community renewable projects across the U.K.
Hays to take on 15 following Edinburgh switch: Hays has unveiled plans to take on 15 consultants in Edinburgh as the recruitment firm switched its base in the city to a Grade A office in Castle Street.
Fresh warning on outlook for oil price: The Chief investment officer of Edinburgh-based Kames Capital has added his voice to warnings the oil price will remain under pressure for months and sees little prospect of a return to $100 per barrel crude.
The Scotsman
Drivers brace themselves for jump in car insurance: The prospect of higher car insurance for millions of motorists reared its head after one of the industry’s biggest players said it was planning to drive up premiums.
Jurassic World fans drive up sales as weather turns: The roaring success of Jurassic World helped drive spending on leisure and entertainment to its highest level this year.
Clydesdale faces extra £500 million hit for PPI and swaps: High street lender Clydesdale Bank is facing an extra £500 million hit this year to compensate customers who were mis-sold loan insurance and complex interest rate hedging products.
City A.M.
Google name change shocks Wall Street: Google stunned investors by unveiling a radical restructuring that will see it become part of a holding company named Alphabet.
Fitbug rejigs balance sheet with £1.7 million of funds to aid expansion: Health tracker Fitbug raised £1.67 million from a share placing and fresh loan agreement.
Capita to sell dental insurer NDP to U.S.-based Unum in £32 million deal: Capita has agreed to sell dental insurance provider National Dental Plan (NDP), to Unum Group for £31.7 million in cash, the FTSE 100 outsourcer said.
Carillion one of three companies to win £4.1 billion outsourcing deal: Carillion has won a new government outsourcing contract that could be worth up to £4.1 billion.
Nostrum in talks over $36 million deal to buy Tethys: Nostrum Oil and Gas was back in talks to purchase the beleaguered Tethys Petroleum after a $47.7 million (£31 million) refinancing deal between Tethys and AGR Energy fell through.
Meggitt ties up $200 million deal with Cobham: Defence firm Meggitt announced it was buying composites business worth $200 million (£128 million) from Cobham
TPG’s real estate arm snaps up European developer TriGranit: TPG Real Estate is bolstering its presence in central Europe after agreeing to buy Hungary-based property developer TriGranit.
Gresham Computing prospers in wake of Clareti software boom: Gresham Computing, which makes software for investment banks, said strong sales of flagship product Clareti Transaction Control (CTC) had propelled a jump in revenue.
