The Times
Pound hits seven-year low against the dollar: Sterling slumped to its lowest level against the dollar in seven years after currency markets were jolted by the unexpected scale of Tory support for leaving Europe and Boris Johnson’s decision to join the “out” campaign.
Ford steers towards driverless cars: Ford is embarking on an investment splurge with the aim of launching a vehicle that will take over from the driver in traffic jams in what could be a big step towards a future of driverless cars.
Taxman let RBS shelter £1 billion in blockbuster films: The Royal Bank of Scotland was given approval to shelter more than £1 billion in tax through “abusive” film-based avoidance schemes, The Times has learnt.
Cutbacks mean oil price ‘is set to soar in 2017’: Cheap fuel prices will be with us until 2017, but steep cuts to investment by the world’s big oil companies may be paving the way for a dramatic rebound, the International Energy Agency has warned.
Steinhoff faces tax inquiry in Germany: The Boss of the South African conglomerate that has gatecrashed J Sainsbury’s attempted takeover of Home Retail Group says that he is “very relaxed” about an investigation into its tax affairs in Germany.
The Independent
Tata Motors renames Zica car ‘Tiago’ to avoid confusion with Zika virus: Tata Motors has renamed its Zica car ‘Tiago’ to avoid confusion with Zika virus.
Mastercard to start using selfies as ID for online payments: Mastercard has confirmed that it is to start accepting selfies and fingerprints as an alternative to passwords when verifying IDs for online payments.
TTIP ‘must include human rights’, Jeremy Corbyn tells David Cameron: Jeremy Corbyn, leader of the opposition, has said he believes human rights should be a part of the Transatlantic Trade and Investment Partnership.
U.K. employers are turning to foreign graduates to fill the skills gap in finance and tech jobs: Foreign graduates are filling the skills gap in financial and engineering roles, according to new research.
HSBC Chief Stuart Gulliver sees pay fall amid sliding profits: Stuart Gulliver, the Chief Executive of HSBC, suffered a pay cut of 3.7% in 2015. Gulliver saw his take-home pay cut from £7.62 million in 2014 to £7.34 million in 2015.
Financial Times
BHP slashes dividend as it swings to $5.7 billion net loss: BHP Billiton has slashed its interim dividend by 74%, marking the widely anticipated end of a long-held policy under which investors in the Anglo-Australian miner enjoyed steady or rising payouts.
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AngloGold cost-cutting drive helps dig miner out of debt: AngloGold Ashanti reduced its net debt by 30% last year and improved cash generation, highlighting how cost-cutting measures by the world’s largest gold miners have helped them respond to a long decline in prices.
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China’s Goldwind becomes world’s largest wind turbine maker: A Chinese company has become the world’s biggest wind turbine maker, putting an end to more than 30 years of European and U.S. dominance.
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Vodafone Chief Vittorio Colao urges BT split: Vodafone Chief Executive Vittorio Colao has made one last appeal for the British telecoms regulator to either split BT from its fixed line network or far more greatly regulate the group ahead of a key review of the U.K. market.
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Lex:
Bank of Ireland: green party: Imagine someone looking to take a punt on a bank crushed by a financial crisis. Indicators of recuperation would include fewer bad loans, more new loans, paying back state aid and a steadily increasing capital ratio (as a proxy for both the bank’s safety and its ability to generate and keep profits). By these measures, the Bank of Ireland is in rude health.
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IPOs: out with the new: U.S. companies used to go public. Executives would travel to the New York Stock Exchange and ring the bell, all smiles and excitement.
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Coca-Cola HBC: how to spend it: U.K.-listed Coke bottler CCH pleasantly surprised the markets with its results last week offering an optimistic outlook for 2016. CCH shares, at one point down 15% this year, have recovered completely.
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Lombard:
HSBC princelings’ concerns over precarious positions quashed: Dear Lombard, have you seen the 2015 results from my employer HSBC? For me, these have come as a shock. Not only is the Securities and Exchange Commission examining the bank’s practices when hiring “princelings” like me. But adjusted profits before tax fell 7% to $20.4 billion, a decline that the market hadn’t forecast. Weak fourth-quarter trading points to a deteriorating outlook.
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Smart bettor: The Boss of Research Affiliates, a U.S. business whose indices are used by “smart beta” funds, has warned that some of these modish investments could come a cropper. This is a fair bet.
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The Daily Telegraph
Opec has failed to stop U.S. shale revolution admits energy watchdog: The current crash in oil prices is sowing the seeds of a powerful rebound and a potential supply crunch by the end of the decade, but the prize may go to the U.S. shale industry rather Opec, the world’s energy watchdog has predicted.
Hackers target BAE Systems 100 times a year: Defence group BAE Systems faces “serious and persistent” cyber-attacks twice a week from hackers trying to steal the defence giant’s secrets.
Sugar Smart app gives small drinks and snacks firms a toothache: A seemingly innocuous app, developed by the Government agency Public Heath England to help shoppers cut down on their sugar intake, has created a furore among the nation’s small businesses.
Halal checking firm Dagang to join the London stock market: A Malaysian halal-checking service is preparing to brave the volatile stock markets to join London’s junior market Aim.
U.S. food company acquires catering supplier Brakes for £2.2 billion: U.S. foodservice distributor Sysco Corporation has struck a deal to acquire London-based rival Brakes Group from Bain Capital Private Equity for around £2.2 billion.
Mobile World Congress: Vodafone makes final plea for BT to be broken up: The Chief Executive of Vodafone has joined last-ditch pleas for BT to be broken up over what he described as the “extra profits” it makes from its Openreach network unit.
Petra Diamonds upbeat despite first-half loss: Petra Diamonds has slumped into a pretax loss after being pumelled by price drops in the global diamond market.
Dechra’s sales take off after poultry acquisition: Shares in Dechra Pharmaceuticals took flight after the animal health business reported a sharp rise in sales following its acquisition of a poultry vaccine maker last year.
The Questor Column:
Primark growth still a concern at ABF: Shares in Associated British Foods, the conglomerate that owns fashion chain Primark, rose 1.2% on Monday after the FTSE 100 company pleased with its latest trading update, ahead of first-half results in April. A change in guidance appears to have cheered investors. Last month, the company told shareholders to expect a “modest decline” in adjusted profits, but it now forecasts that the fall will be only “marginal”. John Bason, ABF’s finance Director, said that more favourable exchange rates had driven the guidance tweak, as had optimism about the company’s trading. Indeed, although like-for-like sales at Primark were only flat during the first-half, the clothing chain compensated with a better-than-expected operating margins during the period. Furthermore, ABF’s sugar business, which has suffered falling profits for many years, also proved a bright spot. The company said that in Spain “profitability improved significantly” while in China the picture was also more encouraging. Mr Bason said troublesome division appeared to have a reached a turning-point. But despite the signs of progress, Questor is not minded to turn positive on the shares just yet. The sugar business may have stabilised, but it is still too early to tell if it is a sustainable recovery. ABF said that total Primark sales were up 4% at actual exchange rates. This is still much slower than the 12% posted at the same point last year. Sell. Associated British Foods at £32.95 +40p. Questor says “Sell”.
Buy IHG on cash returns: All eyes will be on InterContinental Hotels Group on Tuesday, when the FTSE 100 giant behind the Holiday Inn chain is expected to announce a $1 billion return to investors following the sale of sites in Paris and Hong Kong. With further returns likely and the hotels industry in the throes of consolidation, Questor believes IHG shares should have a place in investors’ portfolios. Under Richard Solomons, IHG’s Chief Executive, the hotels giant has undergone a transformation in the past decade, from an asset-heavy company that owns many of its hotels, to an asset-light business. In November, American firm Marriott bought Starwood, the U.S. company behind the Westin and Sheraton brands, for $12.2 billion. The following month, French hotels business Accor acquired the Owner of the Fairmont, Raffles and Swissôtel brands for $2.9 billion. Analysts are wondering how IHG will respond. For one, there is speculation that IHG might receive a takeover offer, which would inevitably boost its stock. Annual results are not expected to surprise and the market’s focus will instead be on what IHG says about the outlook. Growth in U.S. revenue-per-available room is believed to be approaching a peak. Investors are becoming increasingly fearful about the global economy – and heightened terrorism concerns have shaken the travel and tourism industry. The potential for further cash returns are a reason to own the shares, as is the possibility that IHG could be bought. Furthermore, if IHG does not attract a bid, but cuts future returns in favour of using the cash for acquisitions, this would make IHG a more powerful player in the global hotels industry. The shares are at £24.54, which is 14.8% below last April’s peak of £28.80. Buy. InterContinental Hotels at £24.54 +8p. Questor says “Buy”.
The Guardian
Top firms back pro-EU letter, but supermarkets refuse to sign: The Bosses of some of Britain’s top companies, including budget airline easyJet, defence contractor BAE Systems and oil group Shell, have signed a letter in support of the U.K. remaining inside the European Union.
Sainsbury’s given 18 March deadline for new Home Retail bid: Sainsbury’s has been given until 18 March to consider whether it will return with a new bid for Home Retail Group, the Owner of Argos, after its takeover attempt was gatecrashed by South Africa’s Steinhoff International.
Chancellor urged to use budget to support ailing North Sea oil industry: Key oil industry figures have called on the Chancellor to use next month’s budget to prop up the North Sea oil industry after a collapse in investment.
Brexit panic knocks pound to seven-year low: The pound tumbled to a seven-year low and the U.K. was warned its credit rating was at risk on Monday as the effect of Boris Johnson’s backing for the Brexit campaign was felt in financial markets.
HSBC paid 453 staff at least €1 million in 2015: HSBC paid 453 staff €1 million (£780,000) or more in 2015 – up from 320 a year earlier – as it warned it faced a bumpy economic backdrop.
Daily Mail
ABF boosted as its Primark fashion chain sees sales improve after weak Christmas trading: Sales at low-price fashion chain Primark have improved in the new year since the quiet pre-Christmas and festive period, but parent company Associated British Foods still left its full-year forecasts unchanged.
Bovis Homes sees profits lift 20% thanks to rising house prices and growing demand for new homes: Rising house prices and a growing number of house completions lifted Bovis Homes profits by 20% last year as housebuilders continue to benefit from a buoyant market.
Shares in HSBC dip by 5% as China’s slowdown and falling oil price hit the bank’s profits: HSBC reported weaker-than-expected full-year profits for 2015 amid worsening global conditions, especially plummeting oil and commodity prices as well as a slowdown in China.
Daily Express
minicabit and Heathrow launch new luxury transport service: minicabit, the online minicab comparison and booking service, has joined forces with Heathrow to launch chauffeurit, a luxury transport service for passengers.
Big winners and losers as number of million pound properties is set to triple by 2030: Rises in the value of U.K. properties over the next 14 years is expected to more than triple the number worth a £1 million or more.
Osborne could spark intergenerational war by axing pension perks for today’s workers: Scrapping pension tax relief for savers could leave ‘s workers worse off than their grandparents, sparking bitter inter-generation resentment, experts have warned.
The Scottish Herald
Cairn Energy in Shetland deal as Ian Suttie puts First Oil Expro into administration: Cairn Energy has said it expects to make plenty of money East of Shetland after acquiring an additional interest in the giant Kraken field for a nominal cash payment from First Oil Expro, which has gone into administration.
Scottish Water selects joint ventures for £120 million contract: Scottish Water has selected two joint ventures to provide £120 million of technical consultancy support for its 2015 to 2021 investment programme.
Archangels breaks £200 million investment milestone with one of busiest years on record: Archangels, the Scottish business angel syndicate, said 2015 was one of its busiest years on record, with almost £14 million of funding arranged for early-stage businesses, up 14% on 2014.
Business support consultancy wins backing: Business support consultancy GHRL expects to achieve significant expansion after two North East business figures bought into the Nairn-based firm.
Standard Life trust trounces index: The Standard Life U.K. Smaller Companies investment trust made a net asset value total return of 15.2%, and a share price total return of 29.4% in 2015 as the discount fell sharply.
The Scotsman
Scottish Widows shifts insurance business from Edinburgh to London: Life and pensions group Scottish Widows has insisted it remains committed to Edinburgh after transferring billions of pounds of life insurance business south of the Border.
Northern Irish firm Creagh Concrete expands in Scotland: A Northern Irish concrete firm is to create about 30 jobs in Edinburgh, and has secured a deal with Dounreay Site Restoration worth up to £27 million, as it aims to become “a major player” in the Scottish construction sector.
Blipfoto users raise £120,000 to buy social network: Social media users have succeeded in their effort to buy Edinburgh-founded photo sharing website Blipfoto after raising more than £120,000.
Royal London slams pensions ‘robbery’: Life and pensions group Royal London claimed that the March Budget will be tantamount to “robbery” if George Osborne replaces current pensions tax relief with either a pension ISA or a low flat-rate tax relief for all.
PR agencies join forces as Spreng Thomson: Two Scottish public relations agencies have merged to create a new “full-service integrated communications business”.
City A.M.
U.K. house prices: Homeowners rush to remortgage in January as activity reaches highest level in seven years: Remortgaging activity has bounced back in January to reach its highest level in seven years as homeowners take advantage of a surge in mortgage products being offered at record low rates.
Fitbit share price plunges in after hours as company reveals jump in revenue: Shares in Fitbit dropped by almost 15% in after-hours trading, as the health and fitness accessory group unveiled revenue of $711.6 million (£502.7 million) for the final quarter of 2015, up from $370.2 million in the same period of 2014.
Pact Coffee launches £1 million crowdfunding campaign for ambitious expansion plans letting public join top investors such as Robin Klein: Pact Coffee is launching an ambitious crowdfunding campaign to raise £1 million from coffee-lovers to add some buzz to the businesses expansion plans.
Metal prices soar on fears of supply shortage: Zinc, iron ore, copper all climb higher: Fears over a supply shortage have pushed up the price of base metals, with zinc hitting four month highs.
Apple won’t back down on FBI encryption demands and wants a government committee to look at implications of “backdoor” demands: Apple won’t back down on FBI encryption demands and has called for a government commission to look at the issue of giving access to devices to law enforcement agencies.
London startup Qubit lands $40 million series C round from Goldman Sachs, Sapphire Ventures, Accel and Saleforce Ventures: Goldman Sachs is among the investors to plough $40 million (£28.4 million) into London startup Qubit in the latest of several deals injecting venture capital cash into the U.K
