The Times
EU reforms may mean end of fixed-rate mortgages: Homebuyers’ ability to take out fixed-rate mortgages will be severely hit unless new rules from Europe are relaxed over how lenders hedge against interest rate movements.
Strong dollar hits global payouts for investors: The amount of money paid out by companies globally fell by 6.7% in the second quarter of this year to $404.9 billion, but this is entirely down to the strength of the dollar against currencies in which they are paid, and at an underlying level the total is up.
Oil and commodities crash hits AIM companies: More than a tenth of the companies on the Alternative Investment Market are in the “90% club”, having lost that proportion of their stock market worth since their peak, with much of the damage coming in the oil and gas and mining sectors.
U.S.-style activist investors are on the march in Europe: In a show of force, akin to parking a phalanx of tanks on the lawn, activist investors have started appearing on the shareholder registers of some of both Britain’s and the Continent’s biggest companies.
Barclays threat sparks fury among mis-selling victims: Barclays has provoked fury after handing hundreds of customers a take-it-or-leave-it offer that could result in some small businesses being forced to pay the bank hundreds of thousands of pounds despite having been mis-sold its complex hedging products.
Oil and commodities crash hits AIM companies: More than a tenth of the companies on the Alternative Investment Market are in the “90% club”, having lost that proportion of their stock market worth since their peak, with much of the damage coming in the oil and gas and mining sectors.
Greybull charges in as Morrisons sheds local stores: Morrisons is considering selling its M Local convenience stores to Greybull Capital, the investment firm best known for buying Monarch Airlines.
Reluctant house sellers keep summer prices high: The asking price of property coming to market was down by just 0.8%, or £2,258, this month, compared with an average August fall after the credit crunch of 1.5%, according to Rightmove, the property portal.
Young IT millionaires set sights on £10 million homes: There has been a jump in the number of younger buyers snapping up homes such as One Hyde Park that cost £10 million-plus in London as tech and IT millionaires invest in the property market.
TUI could wave goodbye to non-core holiday brands: The travel group behind the Thomson and First Choice holiday brands is considering spinning off non-core assets with a turnover of about €3 billion.
The Independent
Amazon: Devastating expose accuses internet retailer of oppressive and callous attitude to staff: Working four days in a row without sleep; a woman with breast cancer being put on “performance-improvement plans” together with another who had just had a stillborn child; staff routinely bursting into tears; continual monitoring; workers encouraged to turn on each other to keep their jobs.
Fewer vacant shops give rare fillip to high street: Online shopping continues to hurt high streets as fewer shoppers venture out, but there was some optimism as fewer shops were empty last month than at any time in the last four years, according to new data.
Financial Times
Phone call at heart of U.S. case against BP: At the heart of the U.S. government’s case against BP is a recording of a telephone conversation between Gradyn Comfort, one of its senior natural gas traders, and Clayton Luskie, a graduate trainee who was in a panic about his future at the company.
Wood Group expected to have cut jobs since start of year: Wood Group is expected to say this week that it cut its headcount by one in 10 in the first half of the year, as the oilfield services group reacts to a global industry downturn.
Hanergy Thin Film warns of first-half loss: Hanergy Thin Film, the Chinese solar company whose surging value turned its Owner into China’s richest man, has warned it could post a loss for the first half of the year.
Law firms borrow record sums to expand: British law firms are borrowing record sums to fund expansion, retain lawyers and invest in technology, spurred by an influx of work created as mergers and acquisitions boom, according to research funded by a finance provider.
U.K. peer-to-peer lenders turn attention to Asia: Asia is the focus as the next growth area for providers of alternative finance in the U.K., despite concerns over the number of companies going bust and a lack of regulation.
Peer-to-peer lenders widen access for investors: Investors will be able to access peer-to-peer lending through their wealth management platforms for the first time following a tie-up between technology company FNZ and RateSetter, a P2P lender.
TD Bank bets on U.S. branches as rivals cut back: In the 12 months to the end of April, TD opened more branches across the U.S. than it closed, defying an industry-wide trend.
ECB doubles the time needed to review banks’ risk models: The European Central Bank has quietly given itself up to four years for an “intrusive” review that could force the Eurozone’s biggest banks to hold even more capital.
Inland Revenue faces paying out tens of billions in tax refunds: HM Revenue & Customs will be forced to pay tax refunds running into tens of billions of pounds if it is defeated in some of its biggest court battles, its latest accounts show.
Medical Research Council faces budget crunch from ‘patent cliff’: The U.K.’s Medical Research Council is facing a budget crunch because of the loss of tens of millions of pounds in annual revenues from the expiry of patents on medicines it helped to develop.
54 feared dead as Indonesian airliner crashes into mountain: An airliner that disappeared on Sunday with 54 people on board crashed on a mountain in eastern Indonesia, according to the country’s transport officials.
Amazon Chief Jeff Bezos hails U.K. drone rules: Amazon founder and Chief Executive Jeff Bezos has hailed the U.K.’s regulatory regime for drones, as the online retailer hints of the possibility of launching its flying delivery vehicles in Britain before initiating lift-off worldwide.
U.K. trains ‘too many hairdressers, and not enough bricklayers’: Britain is training “too many hairdressers and not enough bricklayers”, according to the body representing local councils, as the falling number of people with construction skills makes it harder to build homes.
Uber to beef up security team in push to strengthen data safety: Uber, the ride-hailing service provider, is to significantly expand its security team as it seeks to soothe worries about data privacy, defend against hackers and even protect its offices and employees from physical attack.
Google rebrand faces searching questions: Last week’s decision to change its name to Alphabet and restrict the Google name to only part of its business marks a highly unusual decision to strip a successful brand from the letterhead of one of the world’s most admired companies.
Lex:
Sprint/SoftBank: Rich uncle: SoftBank Chief Executive Masayoshi Son wants to put up more cash in support of his stumbling U.S. mobile operator Sprint Corp. That is comforting news for the shareholders who own the fifth of the company that SoftBank does not. Sprint needs lots of capital, but its weak operating results and $34 billion in total debt make additional borrowing tricky. So SoftBank has found a way to support Sprint without putting more money directly into the company. The problem starts with the customers. Most mobile operators are pushing them to buy unsubsidised handsets. Sprint, on the other hand, has been offering customers the option to rent their devices. The advantage for customers is that they do not need to come up with a down payment. But that strategy requires Sprint itself to purchase the device at the start of the contract, then recapture that outlay from customers’ monthly payments. That capital requirement — along with what Sprint needs to spend on upgrading its cellular network — is costly. In the most recent quarter, Sprint burnt through $2 billion of cash. Softbank’s plan is to establish and capitalise, alongside other investors, a company that will buy handsets from manufacturers and then rent them to Sprint, which will in turn rent them to customers. The capex of acquiring phones will fall to this “LeaseCo”. Sprint will be left with manageable payments funded by customers. Macquarie Capital analysts think that the structure will enable Sprint to be free cash flow positive in 2016.
U.K. banks: fine times: Just as U.K. banks thought the worst of the multibillion-pound claims for mis-sold payment protection insurance (PPI) had passed, another — much bigger — claims onslaught threatens. Lenders such as Barclays, HSBC, Lloyds Banking Group, Royal Bank of Scotland and Santander U.K. have set aside nearly £27 billion for PPI claims so far. More than half of that has come from Lloyds. But following a Supreme Court ruling last year, the U.K.’s Financial Conduct Authority is considering whether further rules or guidance on PPI complaints handling are needed. Banks want clarity too. At worst, they could end up repaying borrowers £33.5 billion in undisclosed commissions, thinks Autonomous Research. To recap, the Supreme Court ruled last November that Paragon Personal Finance’s failure to disclose the amount of commission received on a single-premium PPI policy breached the Consumer Credit Act. When Susan Plevin took out a £34,000 loan from Paragon, an upfront PPI premium of £5,780 was added to it. More than 70% of the premium was taken as commission and split between Paragon and credit broker LLP Processing. Big banks do not use such brokers; they sell their own products. Even so, they fear that the FCA will use the Plevin ruling to make them repay undisclosed PPI commissions on, say, car loans and credit cards — even where the commission is less outrageous.
Time Warner: there goes the neighbourhood: Sesame Street has become a toll road. The producer of the beloved children’s television programme, Sesame Workshop, has signed a five-year deal with Time Warner’s Home Box Office (HBO) network where new episodes of the show will air first. Sesame Street is known for both its wholesomeness and its egalitarian access model via free, over-the-air television. So its move to a pay-TV operator known for intense and racy fare is curious. Yet although some may lament Big Bird’s migration, Sesame Workshop has made a decision that secures its financial future. For Time Warner, the licensing deal is a bold departure from its typical reliance on internally developed content. In 2014, Sesame Workshop had revenue of $104 million, down over a tenth from 2013. It recorded operating losses in both years. It relies on philanthropy, fees from the not-for-profit Public Broadcasting Service network, and DVD and merchandise sales. But all that together is no match for what a deal with a commercial network and streaming service could provide. The financial terms were not disclosed but the number of Sesame Street episodes produced will double and there will be a new spin-off. HBO already offers a family channel but now has a prize property to attract children (and their parents’ money). That market has been highly sought after by the likes of Netflix and Amazon Prime. HBO’s revenue in the first six months of 2015 was up just 3%. Between 2012 and 2014, HBO and its sister network, Cinemax, added 6.5 million U.S. subscribers, for a total of 45 million. Netflix, in comparison, added 6 million subscribers in 2014 alone to get to 38 million in the U.S..
The Daily Telegraph
Interest rates must rise sooner rather than later, says Kristin Forbes: Kristin Forbes said keeping rates at a record low of 0.5% when the economy was growing at its pre-crisis trend and earnings were rising at a robust pace risked “creating distortions” and “undermining the recovery”.
Doomsday clock for global market crash strikes one minute to midnight as central banks lose control: China currency devaluation signals endgame leaving equity markets free to collapse under the weight of impossible expectations
Soaring house prices push buyers to stretch out repayments: House-buyers are increasingly searching for mortgages with terms of 30 years or more, as high prices force desperate borrowers to look for a way to reduce their monthly payments.
Spending spree by Chinese fails to lift U.K. high street gloom: Spending by Chinese tourists in the U.K. increased by 45% in July compared to the same period last year after visa rules were relaxed at the start of the month, although this surge was not enough to revive visitor numbers on the British high street.
Kate Middleton designer backed by Sir Charles Dunstone: ME+EM has received an undisclosed investment from a consortium of backers including the Carphone Warehouse founder, Pembroke Venture Capital Trust, an off-shoot of Peter Dubens’ Oakley Capital, and angel investor Venrex Fund. The fresh capital will help support the fashion label’s expansion plans.
Hermes signals fund’s interest in buying back into U.K. banks: The rehabilitation of U.K. banks has taken another step forward as a prominent fund Manager looks to buy back into the industry, even as lenders continue to deal with overhanging problems with their finances and culture.
Oil price crash claims 1,000 jobs in North Sea: The devastation wrought by the oil price crash on Britain’s North Sea industry is set to be laid bare when one of the region’s biggest contractors reveals that it has cut 4,000 jobs since the start of the year.
The Guardian
Japan’s economy shrinks by 0.4% in a blow for ‘Abenomics’ growth plan: Japan’s economy shrunk 0.4% in the second quarter of the year, official data showed on Monday, underscoring how the Prime Minister’s “Abenomics” growth programme has yet to grain traction.
China does not want ‘currency war’ with west, says central bank economist: China’s central bank has warned of further volatility in the yuan but reiterated that Beijing had no intention of sparking a “currency war” following a series of shock devaluations last week.
Unemployed young people will be sent to work boot camp, says minister: Young people without jobs will be sent to boot camp to prepare them for work as part of a “no excuses” approach to eradicating youth unemployment, said Matt Hancock, a Cabinet Office minister.
Amazon Boss says Jeremy Clarkson’s Top Gear follow-on show ‘expensive but worth it’: The Amazon founder, Jeff Bezos, has admitted it will be “very, very, very expensive” to launch a new motoring show with Jeremy Clarkson and his Top Gear co-stars after signing up the controversial trio in a multimillion-pound deal following their departure from the BBC.
Greece bailout deal: Angela Merkel expects IMF involvement: Angela Merkel has said that she expects the International Monetary Fund to take part in a new €86 billion (£60 billion) bailout for Greece, as the German chancellor prepares to face Bundestag opposition to the package in a vote on Wednesday
Daily Mail
Toilets, train stations and shops to become grubbier as a result of new ‘living wage’, Interserve Boss warns: Toilets, train stations and shops will become grubbier as a result of the new ‘living wage’, the Boss of the company that cleans the London Underground has warned. From April next year all firms will be forced to pay staff £7.20 an hour, rising to £9 an hour by 2020, under measures announced by the Chancellor in the Budget – compared to £6.50 currently.
Revamped M&S voted the most improved retailer in key annual survey: Marks & Spencer has been named the country’s ‘most improved’ retailer in a key annual survey. Retail analysts at investment bank Morgan Stanley said its annual survey of 1,000 shoppers compared the top 15 fashion retailers including Topshop, ASOS, H&M and Next.
Bidders vie to put own stamp on online greetings car website Moonpig in £400 million auction: The Owner of Moonpig, the online greetings card website, is on the verge of being sold to a powerful private equity firm for between £350 million and £450 million.
Glencore profits to fall by a third after taking hit by commodity slump and shrinking Chinese economy: Commodity trader Glencore is set to post a large drop in profits this week as Boss Ivan Glasenberg nurses his biggest ever paper loss on his investment.
‘Women are best entrepreneurs’ as they are more likely to avoid pitfalls that can kill a young business: Female entrepreneurs are more likely to be risk averse and so avoid the pitfalls that can kill a young business, says Kleinwort Benson’s head of entrepreneurs. In a YouGov survey of 500 entrepreneurs for the private bank, just 11% of women said they had failed to set up a successful business, against 17% of men.
Bovis Homes and Persimmon’s profits go through the roof as rivals are shut out: Two of Britain’s leading housebuilders will this week reveal surging profits, boosted by tight planning rules that have restricted competition from smaller builders trying to enter the market.
The Scottish Herald
Staff demand slows to 26-month low: The growth in demand for permanent staff in Scotland slumped last month to its lowest level since May 2013, as the troubles facing the oil and gas industry continued to weigh on Aberdeen.
Ingles Buchan expects Outlander merchandise boost: A textiles business is hoping for a revenue boost after agreeing a deal to produce official merchandise inspired by the Outlander television series.
Glasgow technology entrepreneur highlights impact of policy change on renewables supply chain: In this week’s SME Focus we hear from a technology specialist whose experience shows how smaller firms have supported the development of a renewable energy industry that has entered a period of uncertainty.
Barrhead invests £1 million in two Edinburgh branches: Barrhead Travel has unveiled plans to invest more than £1 million to open two branches in Edinburgh.
Asda to publish latest sales figures amid supermarket price war: Supermarket giant Asda publishes trading figures this week following a run of declining quarterly sales, while house builder Persimmon, insurer Admiral and pawnbroker H&T will also be in focus
Profits dip at Caledonian Heritable: Caledonian Heritable, Owner of The Dome in Edinburgh, has seen profits fall in its latest financial year.
Investor sentiment towards gold cools: Net investor sentiment for the asset class in August was down 24% on July and 13% on the same month last year, as investors reached out to other asset classes.
The Scotsman
Call for action as shoppers desert high street: Business leaders have said action is needed to stem a slide in shoppers on Scotland’s high streets and a further increase in the number of empty stores.
Sweet deal for Mrs Tilly’s Confectionery: Fudge and tablet maker Mrs Tilly’s Confectionery is to create jobs and extend its international footprint after securing a £1.6 million finance package.
Edinburgh Fringe booms as ticket sales up a third: Leading Fringe figures have reported booming ticket sales – despite the event going head-to-head with the Edinburgh International Festival for the first time in almost two decades.
SNP would ‘support failed asylum seekers with cash’: The Scottish Government would financially support failed asylum seekers if Scotland was handed control over immigration, social justice secretary Alex Neil has said.
Company Bosses’ pay 183 times higher than workers: The average pay of a Chief Executive in leading companies is almost £5 million – 183 times that of workers, a new study has revealed.
City A.M.
Surprise drop in top dog pay: Average pay packages for FTSE 100 Chief execs fell in real terms over the course of the most recently-recorded year, according to a new report out today.
Network Rail is poised for £1 billion sale of properties: Network Rail has taken the first step towards selling off its £1 billion commercial property portfolio after hiring bankers to conduct a review of its estate.
Cigarette packaging war heating up as new study due for release: The tobacco industry has hit back at the government’s plan to enforce plain packaging for cigarettes, warning that the ruling will cause a rise in counterfeits being smuggled into the U.K..
Most U.K. techies would consider moving abroad: Silicon Roundabout has proved a lure for many U.K. tech professionals, but maybe the pull of good coffee and free wifi is wearing off.
Diamond snaps up stake in New York trading outfit South Street: Former bank Chief turned investor Bob Diamond has snapped up a stake in New York-based repo-trading outfit South Street Securities, diversifying his portfolio since his exit from Barclays three years ago.
London bucks trend as high street suffers: Retail footfall dropped 1.1% in July compared with the same month last year, according to figures released today by the British Retail Consortium (BRC) and Springboard.
Wasabi returns to a profit after adding heat to expansion plans: Takeaway sushi and bento chain Wasabi hailed a return to profit last year after expanding its presence in the U.K. and launching its first outlet in New York.
Non-voting Lords have claimed £360,000 in expenses: Members of the House of Lords who did not vote in the last parliamentary session claimed over £100,000 in expenses, according to a new report from the Electoral Reform Society campaign organisation.
Hugo Boss expanding presence in China: German fashion house Hugo Boss will expand its presence in China despite a slowdown in the country, key shareholder Gaetano Marzotto said in an interview in newspaper Welt am Sonntag. “Until now China accounts for less than 10% of group sales, this could be ramped up,” Marzotto said in the interview.
Odeon pins hopes on Star Wars and 007 to narrow 2014 losses: Losses at cinema operator Odeon & UCI widened to £119.7 million last year after a lack of blockbusters and the Fifa World Cup caused a drop in the number of people visiting its screens.
Shire looks to lift $30 billion bid for rival Baxalta: Irish drug giant Shire Pharmaceuticals is prepared to top up its offer to woo rival Baxalta to the negotiating table on condition it is given direct access to its books, sources say.
Nomura opens doors for disengaged kids: Disadvantaged kids celebrated a victory this weekend as investment bank Nomura hosted a graduation ceremony in their own offices for those enrolled in a rigorous programme from education charity ThinkForward. The course has a big City backing, including from Barclays, EY, ICG, Credit Suisse, JP Morgan and UBS. Go team!
Number of confident City workers looking to move doubles in a year: New figures show workers are becoming more eager to switch jobs, suggesting greater confidence in the economy.
Sanction rules put burden on U.K. institutions: A spike in the number of sanctioned individuals and organisations is triggering increased compliance burdens for British banks keen to avoid hefty penalties from regulators, analysts say.
Lansdowne Bosses and Morgan Stanley pocket £190 million payday: Hedge fund Lansdowne Partners paid out more than £190 million to staff and top shareholder Morgan Stanley last year, fresh accounts show.
Profits at Foster + Partners scale new heights: Norman Foster’s architecture firm, which designed City Hall, saw profits surge by 45% to £51.7 million last year after buying out minority shareholder 3i and restoring it to a partnership model.
U.K. company pension deficits could not be plugged by annual salary of every U.K. employee: The annual salary of every employee in the U.K. couldn’t pay off the pension deficit of its private companies which has more than tripled in the last 15 years.
