The Times
Bottom of the range? Equiniti goes even lower: Equiniti Group has enjoyed a rough debut as a listed company after its shares slumped, despite the flotation being priced at the bottom of its range. Shares in the group, which provides pensions and dividend payment services, floated at 165p, the bottom of the suggested range of up to 200p, indicating that demand for its paper was weak. It valued the group at £495 million.
ABN Amro set for return to stock market: ABN Amro will return to the stock market, eight years after it was broken up by Royal Bank of Scotland in a deal that triggered the demise of several large banks across Europe.
BP embraces low oil prices, despite slump in profits: BP sought to assure the City that it can thrive in a world awash with cheap oil for the foreseeable future as its profits slumped by two thirds. The group trimmed its capital expenditure budget to $19 billion (£12.4 billion) for this year, down from an original estimate of $25 billion and said that it would aim to sell between $3 billion and $5 billion of assets as it battens down the hatches.
Bond to launch unnamed discount retailer: Andy Bond, the former Chief Executive of Asda, is to launch a new discount retailer in Britain with backing from Christo Wiese, the South African billionaire.
Shop Direct profits soar as it closes the book on catalogue: A decision to stop printing the colourful Littlewoods mail order catalogue after 80 years appears not to have harmed Shop Direct, which yesterday reported record profits. The online retailer behind the Littlewoods.com and Very.co.uk brands said that its full year profits rose by 78% to £71.7 million after it completed its transition to being a “100% digital retailer”.
Walmart takes the fight to Amazon in war of the drones: Amazon faces a challenge to its ambition to become the first retailer to use drones after Walmart lodged an application with the U.S. authorities to test their use for internet shopping. The world’s biggest retailer, which sells drones to customers, has been testing the use of the small unmanned aircraft for several months indoors, but wants to move the trial outdoors.
Carpetright brushes itself off and gets down to brass tacks: There were no signs of gloominess at Carpetright over the state of Britain’s housing market or the wider economy as the floor-coverings specialist reported a rise in its first-half sales. The retailer, which sells carpets, rugs, laminate floors and beds, said in a pre-close trading statement before its interim results that it expected to report a 4% rise in like-for-like sales for the 25 weeks to 24 October.
Restricting skilled-worker visas ‘will hurt start-ups’: A government plan to clamp down on visas for skilled workers will damage one of the strongest parts of the British economy, technology Bosses have warned. In a letter to David Cameron, the founders of internet groups including Zopa, Shazam, Unruly and lastminute.com say attempts to place restrictions on skilled workers coming to the U.K. will “hurt the U.K.’s digital economy”.
Apple has its ‘most successful year ever’: Apple reported strong sales of iPhones in its latest quarterly results but growth in China, where the company has big expansion plans, showed signs of cooling. Tim Cook, the company’s Chief Executive, said that it had had its “most successful year ever” in 2015 with full year revenue growing by 28% to nearly $234 billion. Earnings increased by% to $53.4 billion. For the fourth quarter, net income rose 31%to $11.12 billion, while revenue rose by 22% to $51.5 billion. Apple took an 8% hit to earnings from currency headwinds.
Crossrail 2 will need £13 billion from Treasury: A detailed blueprint for the Crossrail 2 line through London was unveiled as it emerged that the Treasury will be asked to spend as much as £13.5 billion on the route. Boris Johnson, the mayor of London, said there was strong momentum behind plans for the line, which will boost rail capacity into the centre of the capital by 10% during the morning rush hour.
‘Dying’ steel industry gets hope on emissions: The steel industry was offered emergency aid last night after MPs were told that the industry was “bleeding” and “likely to die”. Sajid Javid, the business secretary, said that the industry would be given extra time to comply with new EU rules on emissions. His intervention came after Gareth Stace, Director of the industry trade body U.K. Steel, warned the business select committee: “If we were a patient on an operating table, we are bleeding very quickly. And we are likely to die on that table.
The Independent
Morrisons sued by 2000 staff for data breach: Morrisons is being sued by more than 2000 staff after some of their personal and financial details were posted online. Morrisons had to put in place fraud protection for some 100,000 employees whose personal details were posted online in 2013.
VW emissions scandal: Volkswagen ‘facing corporate manslaughter charge’ over rigged tests: Volkswagen could be prosecuted on a corporate manslaughter charge over rigged diesel emission tests, Ministers have said, as the Government faced questions from MPs over the number of deaths that could be attributed to the scandal. Transport Minister Robert Goodwill told the Environmental Audit Committee that a corporate manslaughter charge may be considered if legal advice suggests it could be successful.
Financial Times
HSBC shrinks Bermuda operations: HSBC is selling its Bermuda private banking and trust operations, retreating from the tax haven several months after being heavily criticised for helping rich clients of its Swiss private bank to dodge the taxman.
http://www.ft.com/intl/cms/s/0/630df790-7ce9-11e5-98fb-5a6d4728f74e.html#axzz3pfdROdzs
Consumer groups attack TalkTalk over curtailed compensation: Consumer groups attack TalkTalk over curtailed compensation for the hard line it has taken over compensation demands from consumers following last week’s massive cyber attack – a move that cheered nervous investors in the U.K. telecoms group.
http://www.ft.com/intl/cms/s/0/5b26a294-7cc5-11e5-98fb-5a6d4728f74e.html#axzz3pfdROdzs
SNP attacks private equity’s ‘Mayfair millionaire tax loophole’: The Scottish National party in Westminster has ruffled the feathers of British private equity executives by attacking the industry’s “Mayfair millionaires’ tax loophole” in Monday’s debate on the finance bill.
http://www.ft.com/intl/cms/s/0/4d2b997a-7ca6-11e5-98fb-5a6d4728f74e.html#axzz3pfdROdzs
Global steelmakers face cocktail of challenges: For employees at Scotland’s last two steelworks, the timing of the Chinese President’s visit to Britain will have left a bitter taste. On the day that Xi Jinping paraded through central London amid much pomp and pageantry, Tata Steel confirmed it would mothball the 130-year-old plate mills, south of Glasgow that it owns – with the loss of 270 jobs.
http://www.ft.com/intl/cms/s/0/25af0ef4-7bd4-11e5-98fb-5a6d4728f74e.html#axzz3pfdROdzs
Shell takes $2 billion charge on Canada oil sands project: : Royal Dutch Shell is to take a $2 billion writedown after cancelling its Carmon Creek project in the oil sands of western Canada, saying the decision was partly a result of a shortage of pipeline capacity in the region.
http://www.ft.com/intl/cms/s/0/32a8cf92-7cf5-11e5-98fb-5a6d4728f74e.html#axzz3pfdROdzs
Honeysuckle blooms help China solar industry flourish: With the price of solar panels having collapsed because of massive oversupply, a growing number of Chinese companies see an opportunity to make money while also earning political brownie points by helping the government meet its ambitious renewable energy targets.
http://www.ft.com/intl/cms/s/0/48677c4e-6e62-11e5-aca9-d87542bf8673.html#axzz3pfdROdzs
U.S. natural gas crashes to lowest level since 2012: U.S. natural gas prices tumbled to their lowest level in three-and-a-half years on Tuesday as expectations of an unusually warm winter heaped more pain on energy producers already reeling from the collapse in oil prices.
http://www.ft.com/intl/cms/s/0/e6a29574-7c95-11e5-98fb-5a6d4728f74e.html#axzz3pfdROdzs
Turkey initiates legal action against Russia’s Gazprom: Turkey has initiated court proceedings against Gazprom over gas prices, in the latest deterioration in relations between Moscow and Ankara following Russia’s decision to launch air strikes in Syria.
http://www.ft.com/intl/cms/s/0/11665996-7cc6-11e5-a1fe-567b37f80b64.html#axzz3pfdROdzs
Google adds podcasts to music service: Google is adding podcasts to its digital music service in a move that audio producers hope will expand their audience on Android.
http://www.ft.com/intl/cms/s/0/0d46aa3a-7cdc-11e5-98fb-5a6d4728f74e.html#axzz3pfdROdzs
Walgreens to buy Rite Aid for $17.2 billion: Company has agreed to buy smaller rival Rite Aid for $17.2bn including debt, in the latest move by billionaire Chief Executive Stefano Pessina to build a global drugstore group.
http://www.ft.com/intl/cms/s/0/c017e742-7ccc-11e5-a1fe-567b37f80b64.html#axzz3pfdROdzs
IBM nears $2 billion deal for Weather Co unit: IBM is close to acquiring the digital business of the Weather Company for about $2 billion people familiar with the matter said on Tuesday. IBM is interested in acquiring the Weather Company’s business, as it plans to integrate it with its existing unit that offers weather-related data to financial services and transportation companies.
http://www.ft.com/intl/cms/s/0/fd02460a-7d14-11e5-98fb-5a6d4728f74e.html#axzz3pfdROdzs
Lex:
Apple and Twitter: Age before beauty: Twitter has an enterprise value of about 32 times its most recent 12 months’ earnings before interest, tax, depreciation, amortization and employee stock grants. Apple trades on about 6 times ebitda. These are also absurdly selective ways of looking at the two companies. Twitter’s revenues are increasing at a healthy annual clip of more than 50%, but the pace is slowing and user growth has stalled, rising just 1.3% in the last quarter to 320 million.
http://www.ft.com/intl/cms/s/3/ccce4412-7d09-11e5-98fb-5a6d4728f74e.html#axzz3pfdROdzs
European banks: party time: ABN Amro caused problems for RBS and Fortis, which (along with Santander) teamed up to buy it for €71 billion in 2007. Now fixed-up, narrowed-down and government-owned, ABN Amro is for sale again, this time via an IPO due later this year (albeit one whose structure includes some protection against a hostile takeover approach). ABN Amro is not the only European bank looking for investors to buy its equity. The U.K. government has launched a public offer for part of its stake in Lloyds. Credit Suisse is selling SFr6bn of new shares – Deutsche Bank, Standard Chartered and Barclays may follow. And banks from the Eurozone periphery may also look to shore up their balance sheets. The Greek banks will be at the front of that particular queue once the latest round of stress tests is over. That all points to a perky end to 2015 for European bank equity issuance. It has not been a great year so far.
http://www.ft.com/intl/cms/s/3/3b1d7926-7cb3-11e5-98fb-5a6d4728f74e.html#axzz3pfdROdzs
BP: beyond payouts: The good ship BP has plotted its course using $60 oil as its North Star. At $60, that is, it can generate enough cash to cover its investment needs and pay shareholders the $6bn a year in dividends to which they have become accustomed.
http://www.ft.com/intl/cms/s/3/c8c94742-7c8a-11e5-98fb-5a6d4728f74e.html#axzz3pfdROdzs
Lombard:
Dido shouldn’t walktalk: The arrest and bail of a 15-year-old in connection with the TalkTalk data breach has been cited as proof that the group’s security is inadequate.
http://www.ft.com/intl/cms/s/0/4b4915a2-7c9b-11e5-98fb-5a6d4728f74e.html#axzz3pfdROdzs
Not floating, drowning: The Company had priced its offering at the bottom of a 165p-200p per share range. The market value of £495 million conferred by that pricing had shrunk to £453 million by close of play.
http://www.ft.com/intl/cms/s/0/4b4915a2-7c9b-11e5-98fb-5a6d4728f74e.html#axzz3pfdROdzs
The Daily Telegraph
Stemcor debt deal saves 1,000 steel jobs in ray of light for troubled sector: More than 1,000 jobs at British steel-trading giant Stemcor have been saved after lenders agreed to a $1.5 billion (£1 billion) debt “haircut” following months of negotiations. Workers at Stemcor, one of Britain’s largest private companies, had faced a potentially similar fate to those recently left without jobs at steel producers SSI and Tata.
EE wins landmark contract in controversial £1.2 billion police radio replacement: The Home Office will award EE a controversial contract worth hundreds of millions of pounds to replace the bespoke radio network used by Britain’s police, paramedics and firefighters with standard mobile phone service, sources have revealed.
HSBC shifts derivatives trading out of London to cut costs: HSBC is moving its derivative trading book from London to Hong Kong in a bid to cut costs arising from tight regulations in the U.K. and EU. Trading staff will stay put in London, but interest rate swap trades will be increasingly booked in Hong Kong.
Apple adds iTunes carrier billing for German O2 customers: Apple could be adding iTunes charges directly to phone bills in Germany for the first time, reducing the need for card details.
Tesco to open Dorothy Perkins, Burtons and Evans branches in supermarkets: Tesco has agreed a deal with Arcadia that will see the clothing giant sell some of its biggest brands in supermarkets. Arcadia, run by billionaire Sir Philip Green, will open versions of its Dorothy Perkins, Burtons and Evans outlets in select Tesco stores across the country.
Walgreens Boots Alliance to create drug giant with $17 billion deal: Walgreens Boots Alliance has is to buy its U.S. rival Rite Aid in a $17.2 billion (£11.2 billion) takeover that will create one of the largest pharmaceutical groups in the world. Walgreens, which operates in the U.K. as Boots, offered $9 per share for Rite Aid, a premium of 48% to the stock’s closing price on Monday. The deal will bring together America’s second and third largest pharmacy chains and create a company with more than 12,800 U.S. stores.
The Questor Column:
APR Energy agrees £165 million deal to go private: Temporary power firm APR Energy has accepted a £165 million takeover offer from a consortium of private equity firms. The deal brings to a close APR’s tumultuous listed life, which has been a disastrous experience for many retail investors. The cash offer for APR comes from Apple Bidco – an investment vehicle jointly owned by private equity group ACM, chaired by Madeleine Albright, the former United States secretary of state, Fairfax Holdings and ACON. ACM was one of the original backers of APR before it floated. The current £165 million takeover offer values each APR share at just 175p, which is a far cry from the £11 at which the shares closed on their first day of trading four years ago. At the time of the float, APR was billed as a “baby Aggreko” that would replicate the rapid growth of its larger listed peer. APR has raised funds to almost triple its fleet of generators to 2,058 megawatts, but the takeover deal will see them change hands for a fraction of their original cost. APR, which flies generators around the world to provide emergency power, suffered badly after fifth of its generator fleet was stuck in Libya after a contract in the country was not renewed. The kit has now been extracted but signing new deals is proving slow. The company has also suffered from a revolving door in the boardroom. Brian Rich was the latest casualty when he stepped down as Chief operating officer in June, after just over a year in the role. Denise Kingsmill replaced Mike Fairey as vice-Chairman in October last year, saying upon her arrival that “the group’s business model is truly unique, and levers solid business fundamentals that have resulted in a strong balance sheet”. She left APR five months later. APR Energy is at 172p -7p. Questor says “Hold”.
BP backs 6.8% dividends until 2017: Income investors breathed a sigh of relief as BP, the third largest dividend payer in the FTSE 100, laid out a plan to maintain dividends despite a sharp fall in profits. The oil giant may have suffered a 40% slump in third quarter profits, but it has the ability to pull a number of levers to protect the dividend payments, and the strong balance sheet strength will give it the time to carry out its plan. BP can afford to maintain the payments by cutting its spending on oil projects that are no longer profitable, reducing the size of its workforce around the world, and selling assets to raise cash. Having done all this, BP reckons it will not only be able maintain dividends, but increase them if the oil price recovers to $60 per barrel by 2017. Capital spending will fall as low as $17 billion next year, down from $19 billion in 2015, and $23 billion last year. Cutting costs in the running of the business has also saved $3 billion so far this year and management expect those savings to reach $6 billion a year by 2017. The assets sales have raised $7.8 billion so far this year, with a target of $10 billion by the end of December, and up to $5 billion next year. The reason for this drastic action is that cash is getting tight. BP is forecast to generate about $19 billion in cash from operating the business during the next three years, down sharply from $33 billion last year. Questor believes the strategy is manageable but investors should be aware that ultimately the whole strategy relies on the oil price recovering at some point in the future, and if it doesn’t then the dividend will face the chop, as no company can fund cash returns out of debt forever. BP can prepare for the future with more certainty than at any other point in the past five years because in July it reached an agreement with the U.S. Government on fines relating to the 2010 oil disaster in the Gulf of Mexico. BP is at 380p -4.4p. Questor says “Hold”.
Strong start for Dechra Pharmaceuticals: Dechra Pharmaceuticals reported a strong start to its new financial year, and Questor believes the animal drugs company looks good for the long term. The FTSE 250-listed group has built strong trading foundations, specialising in drugs for household pets and horses, and is now expanding into the European farming market. The Cheshire-based company said revenue in the first quarter jumped 13%, driven by strong growth in the U.S., where sales almost doubled. Dechra enjoyed strong sales of its canine drugs and treatments for horse lameness in the North American market, as well as a relaunch of animal eye treatments. The U.S. market contributes about 16% of group revenue. However, the company is still focused on Europe, which generates about half of the total sales, but revenue was flat in the first quarter. Dechra spent €36.6 million (£26 million) last week to take a 92.3% stake in Genera, a Croatia-based specialist in the $1.3 billion chicken vaccine market. This deal follows on from the purchase of Dutch group Eurovet Animal Health for €135 million in 2012. Dechra is expected to increase revenue by about 10% to £220 million this year, giving pre-tax profits of £45 million and 43p in earnings per share for the year to June. Profits are forecast to be sharply higher than the £25.8 million announced in the most recent results. Dechra Pharmaceuticals is at 967.50p -7.50p. Questor says “Hold”.
The Guardian
Twitter fails to add any new users in U.S. for second straight quarter: Twitter stock took another hit on Tuesday, dropping by more than 10% in after-hours trading in the hour after the company revealed it had failed to add any new users in the U.S. for the second quarter in a row.
GDP growth in the U.K. slows more than expected to 0.5%: The already remote prospects of an interest rate rise from the Bank of England this year have all but disappeared after a recession in manufacturing and the biggest slump in construction output in three years slowed the U.K. economy by more than expected in the third quarter of 2015.
Ford reports higher quarterly profits due to strong sales in U.S.: Ford has reported higher quarterly profits driven by a record performance in North America, despite missing Wall Street estimates because of higher taxes.
Sugar market reform ‘could flood EU with cheap imports’: Europe could soon be swamped with cheap sugar – including fructose, which is blamed for fuelling the U.S. obesity epidemic – because of the planned liberalisation of the sugar market, experts have said.
Daily Mail
Ejector seat maker Chemring in turmoil after delays to Middle East ammunitions contract as investors ‘fear for the worst’: Chemring was fighting for its life yesterday as it issued a profit warning and announced emergency plans to go cap in hand to shareholders.
Metro Bank sees losses rise as it spends money on staff and a service centre ahead of its planned 2016 London listing: Metro Bank – which launched in 2010 – has seen its third quarter losses increase as the challenger lender bulks up ahead of a float on the London Stock Exchange planned for next year. The group’s loss after tax in the quarter ended September 30 was £10.7million, widening from a loss of £8.0million in the previous quarter. The increase comes after the group said in July that its losses had declined for eight successive quarters
N Brown loses womenswear Director behind its transformation from catalogue retailer to online giant: Billion pound home shopping giant N Brown has lost its long-serving womenswear Director who has been instrumental building the business over the past decade. Buying Director Linda Quinn joined in 2003 as part of former Chief Executive Alan White’s successful management team. During her tenure the business was transformed from a catalogue retailer into an online giant. Profit doubled to £100 million a year.
Is brewery mega-deal going flat? AB InBev to ask for more time in takeover deal for SAB: Budweiser Owner Anheuser-Busch InBev is likely to ask for more time to complete a £68billion deal to form the world’s largest brewer that will be responsible for making one in every three pints served around the world. The Takeover Panel had granted the Belgian firm a two-week extension to clinch its takeover of Peroni-maker SAB Miller.
Daily Express
Why you’ll be paying £3 million a week on trains that can’t move- that’s £5 a minute: British taxpayers are unwittingly going to be paying £400,000 every day for new electric trains that can’t go anywhere if, as expected, the track is not ready.
Victory for consumers as mobile roaming charges to be scrapped by 2017: British mobile phone users will be able to pay the same price to make calls, send text messages and use data wherever they are in the EU from June 2017.
How homeowners are tricked out of £1,500 by low rate mortgages: Rates on home loans have fallen to record lows in recent years, but at the same time stealth fees have been increasing. It means some of the ‘cheapest’ mortgages can actually cost customers hundreds of pounds more than products with higher rates.
The Scottish Herald
BP highlights importance of North Sea amid crude price plunge: BP has signalled it sees long term potential in the North Sea which will remain a major source of production for years although the company is buckling down for a long period of low oil prices. Chief Executive Bob Dudley said the oil and gas giant is preparing for Brent crude to trade around $60 per barrel for some time, well below the levels seen amid the boom in the industry which ended last year.
Mercier investment group launches Scottish operation: Mercia Technologies, the Midlands-based investment group, has opened an office in Edinburgh as it looks to fund early-stage businesses emerging in Scotland. The Scottish operation, which has forged partnerships with Dundee’s Abertay University and the University of Strathclyde in Glasgow, is headed by investment Manager Paul Devlin.
Poultry and potatoes down: Scotland’s latest agricultural census has shown a sharp decrease in poultry and potato-growing land over the last year. Poultry suffered the biggest fall, with an 11% decrease in chickens caused by the reduction in the broiler sector, which dropped 2.1 million birds to 5.7 million. Overall poultry numbers stand at 13.1million, the lowest on record.
The Leith Agency wins The Famous Grouse account: The Leith Agency is to head up the global advertising and media account for The Famous Grouse. Edrington Group, Owner of The Famous Grouse, has given Edinburgh based Leith responsibility for above the line (ATL), below the line (BTL) and digital activity for the whisky.
Bank’s Chief economist to step down: Bank of Scotland’s Chief economist Professor Donald MacRae has announced his intention to retire next month. His departure marks the end of a 30-year career with Lloyds Banking Group, where he has held a number of financial and strategic roles including Directorships at Lloyds TSB Scotland, and before that TSB Bank.
The Scotsman
Pizza Express delivers record pre-tax earnings: Full year results reveal that the group, which was swallowed last year by Chinese outfit Hony Capital, generated underlying earnings before tax and depreciation of £100.2 million, up almost 13% on a year earlier. It is the first time that the profit measure has been above £100 million.
Investors reap benefits from out-of-town retail: CBRE’s latest prime rents and yields monitor shows the value of such centres rising by 6% in the third quarter of this year, marking the second steepest increase since 2000.
Harry Potter publisher Bloomsbury enjoys sales rise: The firm said that its sales lifted 11.6% to £52.7 million in the six months to the end of August compared to a year ago, as the group boosted sales by 45% at its educational and children’s unit. The publisher added that revenues in its educational and children’s division rose to £16.3 million, with books such as Paper Towns by John Green and the new children’s editions of JK Rowling’s Harry Potter novels as strong performers.
U.K. climbs the ranks of best places to do business: The U.K. has risen up the ranks among the world’s best places in which to do business, according to the World Bank. The World Bank’s Ease of Doing Business report, places the U.K. at sixth place out of 189 countries – up from number eight previously and ahead of the U.S., Germany and Japan.
City A.M.
Consumer confidence hit its lowest level for 2015 in September – Lloyds Bank: Consumer confidence dropped to the lowest level it has been in 2015 during September, the Lloyds Bank Spending Power Report revealed. The proportion of people who feel comfortable about their household finances also dropped to the lowest it has been for the last five months, said the report.
British Chambers of Commerce says Chancellor George Osborne needs to make major structural changes: A leading business group is calling on Chancellor George Osborne to make major structural changes in next month’s spending review.
Former Australian Prime Minister Tony Abbott: mass migration is a “wicked problem”: In a surprising intervention, former Australian Prime Minister Tony Abbott has told a City audience that mass migration to Europe is a “wicked problem” and advocated for further military intervention in Syria and Iraq.
Ineos is reportedly in talks with Fairfield Energy over its holdings in the North Sea: Chemicals firm Ineos is reported to be looking at extending its presence in the North Sea oil and gas business. The group is in advanced talks with Fairfield Energy to buy a stake in the Clipper South gasfield, according to Sky News.
Deezer postpones planned IPO due to market conditions: The group said it was postponing the planned flotation on the Paris stock exchange “due to market conditions” and added that it will review its fundraising options in the future.
