In the papers: World economy in danger of stagnating IMF warns

Date

4/14/2016 7:23:14 AM

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(MENAFN- ProactiveInvestors - UK) Proactive Investors Wed

The Times
World economy in danger of stagnating IMF warns: Political leaders from across the world should start preparing for the worst as the global economy slips into a low-growth trap the International Monetary Fund has warned.
Hopes over output freeze sends crude price higher: Oil prices reached a five-month high exceeding $44 for the first time this year amid hopes that a Russian-brokered deal to freeze output by the world's top producers could succeed.
Shell to clear decks in the North Sea: Royal Dutch Shell has signalled that it is likely to sell some of its older North Sea assets.
Hold steady on rates until after referendum experts tell Bank: The Bank of England has been urged to avoid raising interest rates until after the European Union referendum at least as members of The Times' shadow monetary policy committee said that increasing them now was too risky.
East meets west as English house prices soar to record levels: House prices have risen by 7.6% over the past year and have hit record levels in parts of England spelling 'good news for homeowners and bad news for aspiring homeowners'.
Co-op considers sale of 'non-convenience' stores: The Co-operative Group is considering selling off hundreds of stores as part of Richard Pennycook's turnaround plan.
Heading in the same direction: Burberry shares were walking hand-in-hand with those of LVMH after the French luxury retailer said that it had attracted sales of 8.62 billion in the three months to the end of March.
ASOS buoyed by Christmas discount days: A strong Christmas trading season in particular on digital discounting days such as Black Friday will enable Asos the online fashion retailer to hit City expectations this year.
Arria is speaking investors' language: Investors didn't need to read between the lines as Arria NLG moved closer to a full product rollout. Shares in the AIM-quoted company rose by 3% after it announced a big step forward in its work with Genpact a New York-listed business processor.
The Independent
EU to crack down on multinational tax avoidance with new reporting rules: Greater transparency could be imposed on multinational companies operating in the European Union after the European Commission unveiled plans to require all large firms to disclose their profits earned and taxes paid in each of the bloc's countries as well as in overseas tax havens.
Oil production freeze 'the only way' to tackle falling prices Iraq says: The biggest oil producers in the world must reach an agreement to freeze production to stop the oil price falling again according to the head of Iraq's state oil-selling company.
Clothing and higher air fares push inflation to 15-month high: U.K. inflation lifted to its highest level for 15 months in March as the rising cost of clothes and air fares pushed up the cost of living.
Financial Times
Warning of weak cyber defences on leading U.K. retail websites: Many leading U.K. retailers have websites that require 'serious attention' to make them safe against cyber-attacks according to new research that reveals how well stores are dealing with the rising threat from hackers and online criminals.
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Tata Steel sets deadline of May 28 for sale of British arm: The day of reckoning for the British steel industry has been set for May 28 with Tata Steel planning to close down its U.K. arm if it is unable to negotiate a viable sale by that date according to people familiar with the situation.
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PageGroup reports stronger growth in temporary hiring: PageGroup the recruiter that is a bellwether for international business confidence reported far stronger growth in temporary appointments than permanent hires in the first quarter in a sign of nervousness about the economy.
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Funeral business reaps profits as U.K. death rate soars: Dignity the U.K.'s only listed funeral services company last month said pretax profits for 2015 had grown by almost a quarter with revenues up 13%.
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Italy extends $5 billion credit line and export guarantees to Iran: Italian financing agencies have teamed up to give Iran nearly 5 billion in credit lines and guarantees for exports in one of the most significant financial deals with the Islamic Republic since the landmark nuclear agreement that led to lifting of international sanctions.
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Aerojet in space race with Bezos to win U.S. rocket contract: Aerojet Rocketdyne the company that built the space shuttle's main engines on Tuesday stepped up its campaign to supplant Jeff Bezos's Blue Origin as provider of power for the next generation of U.S. rocket systems.
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BuzzFeed missed 2015 revenue targets and slashes 2016 projections: BuzzFeed missed its revenue target for 2015 and has slashed its internal projections for 2016 by about half raising questions about whether the online news and entertainment network can meet the sky-high valuations put on new media groups by investors.
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Lex:
U.S. banks: many happy returns: First-quarter earnings for the big U.S. financial institutions kick off on Wednesday with traditional early bird JPMorgan Chase.
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Nomura: heading home: For various reasons managements may choose to ignore these dicta. Nomura Holdings did; it spent years trying to boost growth by taking on international rivals on their home turf. Some employees prospered from this but shareholders did not.
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Italian banks: Atlas quakes: Italy has forced its financial industry to cobble together 5 billion in equity for ailing banks. It is dubbed the 'Atlas' fund after the mythological Titan though the world he held up was probably lighter than the collective liabilities of Italy's financial system.
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Lombard:
How Nomura's angel fell to earth: Nomura bankers visiting from Tokyo are wont to ask London colleagues: 'How come you have such swanky offices when you lose us money?' There will soon be fewer at One Angel Lane to aim that barb at. Nomura is to cut hundreds of jobs across Europe and the U.S. with its City outpost bearing the brunt.
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The other Brexit debate: A coffee to go for Christopher Rogers. He is stepping down as managing Director of Costa Whitbread's cafe chain. Tepid recent results are less to blame than the decision of the board to appoint Alison Brittain as Chief Executive. Passed over Mr Rogers is passing on leaving Ms Brittain to unpick strategic dilemmas.
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The Daily Telegraph
Amazon seeks U.K. pay-TV deals as it gears up for Clarkson: Amazon is in talks with British broadcasters to add their channel brands and programmes to its streaming service as it gears up to use Jeremy Clarkson as the spearhead of an attack on the pay-TV market.
Fight over film tax avoidance scheme reaches Supreme Court: The Supreme Court will this week examine a tax avoidance scheme that used the rights to Disney films to help generate tax breaks in a case that could have far-reaching consequences for HMRC's crackdown on such vehicles.
Top Bosses get a modest 1% pay rise with four in ten getting a pay freeze: The average FTSE 100 Chief Executive was handed a modest 1% pay rise last year while four in ten Bosses had their salaries frozen according to new research that suggests the bruising shareholder protest votes of recent years have encouraged greater boardroom restraint.
Cybercriminals target half their attacks at small businesses: Cybercriminals are no longer solely attacking big corporations but are increasingly turning their attention to smaller firms it has emerged sparking fears that there is a new 'back door' through which hackers can steal reams of data and cash.
The Guardian plots move away from King's Cross HQ to cut costs: The Guardian is considering a move away from its Kings Cross headquarters as the next stage of efforts to staunch the heavy losses that have put 250 jobs under threat at the newspaper.
ScS shrinks losses after record sales: ScS the furniture retailer has shrunk its losses by 10 million on the back of a boost in online sales.
Ryanair Boss eyes succession plans: The veteran Boss of Ryanair has given his strongest signal yet that he is starting to eye retirement from the budget carrier after revealing he will start grooming potential replacements to lead the airline in coming years.
Aberdeen piles pressure on BP over Bob Dudley's pay: Aberdeen Asset Management has added its voice to the growing criticism of BP's Executive pay plan ahead of a key shareholder vote at the oil major's AGM on Thursday.
The Questor Column:
Carclo on track for jump in profits: Plastics specialist Carclo said it saw a much needed improvement in trading during the second half of the year sending its shares more than 12% higher. The company saw good demand in the U.S. which led to a stronger second half at its Technical Plastics division. Carclo's LED lighting division also performed well in the six months to the end of March. The headlamps it makes are used in luxury car brands including Bugatti Lamborghini and Aston Martin. The business continues to win new orders for its lights on a range of supercars such as the new Aston Martin DB11 which is important as Led lighting contributes about a third of the group's total revenue and more than half of the profits. The Precision Engineering reported a better second half while its Carclo Diagnostics Solutions arm performed in line. Manufacturing sites have recently been expanded in Latrobe in the U.S. and a new facility in Taicang China is now fully operational. The company is currently expanding production sites in Bangalore India and Tucson Arizona. Management are confident the business is in line for the year ended March 31 with broker Peel Hunt expecting revenue up 8% to 116 million and pretax profits up 20% to 8.5 million giving 9.4p in earnings per share. Shares in the company look very conservatively rated trading on 14 times earnings for the year to March 2016 and falling to 11 times for the year after that. There is of course a risk of a downturn hitting supercar sales but this company looks well placed. Buy. Carclo at 143p +15.5p. Questor says 'Buy'.
ASOS back on track after solid first half: Shares in online clothing retailer ASOS surged more than 6% after a solid set of results for the first half of its financial year showed the company is putting a troubled two years behind it. ASOS said its active customers increased by 17% to 10.9 million during the six months ended February 29. Retail sales increased by 25% in the group's largest market the U.K. which contributes about 42% of total revenue and profits. ASOS reported retail sales up 23% in Europe while the gross margin dropped 250 basis points to 46.3%. The Rest of the World business which is dominated by sales in Australia also hit a brick wall with flat sales in the first half. The other area that was causing problems last year was the company's rising cost base eating into profits as Asos spent heavily in marketing and advertising. The results in the first half show that the costs which increased by 20% are now back in line with sales growth which was 21%. When all this is added together it allowed pretax profits to rise 18% to 21.2 million during the six months to the end of February 29. Asos will also become more focused after its recent exit from Chinese warehouses and shutting down its China-focused website. The company said it will suffer a one-off hit of around 10 million related to the closures but profitability will improve by removing the annual operating loss of around 7 million a year which can in turn be spent on driving growth elsewhere. Management reassured the market they are on target to hit expectations for full-year pretax profits of 58 million giving earnings per share of 54p on revenue of 1.4 billion. There is still no dividend as the company uses all the cash to deliver growth and on these steady results we upgrade Asos to a hold. ASOS at 37.03 +300p. Questor says 'Hold'.
The Guardian
Nurofen maker deserves $6 million fine for false claims court told: Nurofen's manufacturer Reckitt Benckiser should be fined $6 million for misleading consumers over a range of 'targeted' pain products that cost twice as much as its standard painkillers despite having the same active ingredient and effect the Australian Competition and Consumer Commission (ACCC) has found.
IMF says Britain leaving the EU is a significant risk: A British vote to leave the EU risks causing severe economic and political damage to Europe and will spill over into to weaken an already febrile world economy according to the International Monetary Fund.
Panama Papers: global tax officials to launch unprecedented inquiry: Tax investigators from 28 countries will meet in Paris on Wednesday to launch an unprecedented international inquiry following the publication of the Panama Papers.
Europe pressures multinationals to declare taxes and profits: Multinational companies will be forced to disclose profits earned and taxes paid in Europe and the world's shadiest fiscal havens under proposals announced by EU regulators.
Executive pay up almost 6% according to thinktank analysis: Britain's top Bosses have continued to enjoy generous pay rises despite greater scrutiny of Executive rewards according to the latest data from the High Pay Centre.
Tata Steel rules out any dowry to attract potential buyer: Tata has indicated it is not prepared to hand over a dowry to any buyer of its U.K. business despite the Port Talbot steelworks needing hundreds of millions of pounds in new investment to survive.
Daily Mail
Costa Coffee's MD to step down after being twice overlooked for the top job at Owner Whitbread: Costa Coffee's Boss is to step down after being twice overlooked for the top job at Owner Whitbread.
HSBC risks losing U.S. banking licence as pressure mounts over Panama Papers probe: HSBC risks losing its U.S. banking licence if U.S. authorities decide to investigate and find it has acted improperly over the Panama Papers tax leaks experts warned.
Ofcom rejects claims it was lobbied into backing down from splitting up BT and Openreach: Ofcom has rejected accusations it backed down from splitting up BT.
Court showdown for credit card firm CPP as Founder plots to oust CEO and Chairman in bid to regain control: The credit card firm's Founder Hamish Ogston is seeking to dethrone the Chief Executive and Chairman in a bid to regain control.
Daily Express
Italy on the brink: Emergency rescue fund set for banks amid fears of another Euro crash: Desperate Italy has launched an emergency rescue fund for its banks amid growing fears the country's huge debts could tip the economy over the edge.
Ryanair Boss Michael O'Leary reveals goal of 80p a flight: Air passengers could be paying an average of just 1 or about 80p per flight in the foreseeable future claimed Ryanair Boss Michael O'Leary.
Curse of negative interest rates: Central banks' radical policy could trigger mayhem: Central banks are raising fears of another global financial crisis by slashing interest rates further below zero. In the desperate hope of kick-starting growth more banks in charge of developed economies are adopting the controversial policy.
Pensions crisis: Millions blame record low interest rates for wrecking retirement: Millions of employees are now resigned to working into old age as years of record-low interest rates take their toll on pensioner savings.
The Scottish Herald
East Kilbride set for 40 million retail and residential development: East Kilbride could be in line to benefit from a new 40 million retail and residential development if detailed plans submitted by a Glasgow-based asset and property management company are approved.
Forth Ports helps U.S. fish feed giant target Scottish market: Forth Ports has invested more than 2 million building a warehouse at Grangemouth that will be used for thousands of tonnes of raw materials imported for a U.S. fish feed giant.
Aberdeen homes to be powered by Scotland's first urban hydro scheme: Community investors in Aberdeen will have the chance to back the construction of what is thought to be Scotland's first urban hydro energy scheme.
High-tech marketing platform aims to empower small businesses: Bars cafes and coffee shops could soon be offering their customers personalised marketing thanks to a community-based social platform developed by two students and a recent graduate from the University of Glasgow.
Profits up at recruiter Michael Page despite referendum uncertainty: Recruitment firm Michael Page has bolstered profits despite tough trading triggered by an early Easter and uncertainty surrounding Britain's referendum on the European Union.
New joint broker for Aberdeen: Aberdeen Asset Management has announced the appointment of Cenkos Securities as joint corporate broker alongside the company's existing brokers JP Morgan Cazenove and Credit Suisse Securities (Europe).
Mull firm wins multi-million pound wind farm support contract: A Mull-based marine services firm has won a multi-million contract to help a Danish energy giant develop a wind farm off eastern England.
The Scotsman
Uncertainty over oil price hindering energy M&A surge: An 'inevitable' wave of consolidation in the oil and gas sector is stalling due to the cautious stance being adopted by the majority of top-level Executives on the back of oil price volatility according to new research.
Scots-based bakery secures Lidl distribution contract: A Perth-based bakery has experienced a rise in orders by securing a 'substantial' distribution deal with Lidl to supply a range of six confectionery and bread products to 90 stores in Scotland.
Country estate dating back to Robert the Bruce up for sale: A Scottish estate once home to one of Margaret Thatcher's Cabinet Ministers is to be put on the market this spring it has been announced.
Aer Lingus to boost Dublin-Glasgow service for British Open: Airline Aer Lingus has announced it will up capacity on its Dublin to Glasgow service for golf fans heading to the British Open this summer.
Proserv seals key Statoil contract: Energy services company Proserv has been awarded a 'multi-million pound' contract with Statoil to provide production control equipment in Norway.
Former RBS employee banned from working in finance: A former Royal Bank of Scotland employee and Libor submitter has been banned from working in the financial services sector by the regulator after it found him to be lacking 'integrity' in his dealings while submitting foreign currency rates for the Scottish bank.
City A.M.
Valeant Pharmaceuticals' bondholders not pleased with annual report delay but drugmaker aims to have it filed before end of April: Valeant Pharmaceuticals revealed that it has received a default notice from its bondholders protesting the late filing of its 10-K form.
EY has now banked over $500 million from the 2009 Nortel bankruptcy as legal fees continue to balloon: EY previously known as Ernst and Young has now raked in over $500 million (354 million) in fees from the collapse of Canadian tech giant Nortel over the last seven years the London based accounting giant has confirmed.
Next Fifteen Communications Group share price closes up after digital communications company reports boost to profits and revenues for full year ended January 2016: Share price in Next Fifteen Communications Group closed up after the digital marketing company reported a boost to both its profits and revenues in its most recent set of results.
AB InBev gulps down Wetherspoons' craft beer favourite U.S. Devils Backbone Brewing as buying bender rolls on: Anheuser-Busch InBev the world's largest brewer more commonly known as AB InBev has said it plans to swallow Wetherspoons' craft beer supplier Devils Backbone Brewing for an undisclosed price.
Interserve joint venture walks away from 1 billion One Nine Elms scheme as talks collapse: A 1 billion scheme to build twin luxury residential-led towers in Nine Elms has run aground after a construction deal with the contractors collapsed.
European private banking group expands U.K. presence with acquisition from BNP Paribas: A pan-European private banking group has announced an acquisition from BNP Paribas to expand in the U.K.
Swing and a miss for Perry Ellis International as fashion design house reports a loss for year ended January 2016: Perry Ellis International's full year results missed the mark for shareholders as shares traded flat in pre-market trading after the company reported a loss in its full year results.
Gala Leisure and Gala Interactive brands become latest to join independent gambling regulator Senet Group: The Gala Bingo brand has become the first bingo business to join the independent gambling industry watchdog the Senet Group.
Boeing takes steps to tap into Iranian market after Airbus made moves earlier this year: Boeing has started talks with Iran to sell airliners into the largely untapped marketplace. Preliminary talks began this week in Tehran between Boeing and Iranian airlines including Iran Air around the possibility to sell Boeing's planes and services.
Death knell for physical music as digital sales overtake for the first time: The global music market hailed its first significant year-on-year growth in nearly two decades as booming digital music sales overtook physical formats for the time.