In the papers: UBS, HSBC, Elementis
Date
6/26/2016 8:01:58 AM
(MENAFN- ProactiveInvestors - UK) Proactive Investors, Thu
The Times
City banks tell clients to prepare for Brexit chaos: City banks including UBS, HSBC, Morgan Stanley and Bank of America Merrill Lynch have written to clients telling them to prepare for disruption once the EU referendum result is declared. The Bank of England is on high alert to intervene if markets freeze.
Investigation into energy market ''may top 80 million'': The total cost of a two-year competition investigation into the British energy market could exceed 80 million, according to industry officials.
Stricken BHS ''needs second administrator'': The pensions lifeboat has requested that a second administrator be appointed to BHS amid inquiries into a complex web of ties between the former Owners of the collapsed retailer.
SSE promises to play fair in electricity connections: Ofgem believes that proposals from SSE should help to address the watchdog''s concerns about competition in the electricity connections market.
Americans bet house on price rises: Home sales in the United States rose at their fastest rate in nearly a decade last month, with a shortage in properties for sale pushing up the median price to a record high.
Middle East restaurants will keep it casual: The restaurant company behind the Cafe Rouge and Bella Italia chains has signed a franchise deal in Saudi Arabia as a platform for expansion throughout the Middle East and Asia.
Elementis tarnished by poor chromium profits: Elementis has become the latest Anglo-American industrial company to issue a profit warning and see its shares dip towards multi-year lows.
ECB offers new round of cheap loans: The European Central Bank opened a new round of ultra-cheap loans for banks in its latest attempt to kick-start credit flows and revive inflation in the single currency area.
Tesla''s SolarCity bid cannot avoid clouds: Elon Musk faces a battle with shareholders over plans to combine his Tesla electric car and battery maker with SolarCity, his solar panel installation company.
The Independent
TTIP: U.K. will be powerless against trade deal outside EU, say campaigners: The TTIP trade deal is unpopular across the political board in Britain. The controversial agreement has been revealed to include provisions for the U.S. to degrade protections on the environment, consumer rights, and would give U.S. companies influence over European laws.
Brexit will push up the price of wine, Majestic Wine Boss Rowan Gormley says: Wine prices will rise if the U.K. votes to leave the EU in the upcoming referendum, according to the head of the largest specialist wine retailer in the U.K.
Valentino''s Qatari Owners Mayhoola acquire French fashion brand Balmain: Mayhoola for Investments, an investment fund backed by the emir of Qatar, acquired French fashion house Balmain, adding a brand favored by Kim Kardashian to a roster of labels that includes Italy''s Valentino.
The Daily Telegraph
Heathrow''s third runway is ''rip off'', says British Airways Boss: Heathrow''s new runway plans are a ''rip off'', according to airline Boss Willie Walsh, and billions could be saved by extending an existing runway instead.
Europe urged to embrace cheap Russian gas to safeguard industry: European leaders have been urged to put aside opposition to Russia''s dominance in the European gas market and take advantage of cheap imports to safeguard struggling industrial sectors against the rising cost of energy.
Offshore wind turbines to stand taller than towers of Canary Wharf: Wind turbines taller than the tallest buildings in Canary Wharf could be built offshore in the 2020s, as the industry uses bigger machines to cut costs, a leading manufacturer has said.
Tesco''s Eastern European business is here to stay as plans revealed for new Polish distribution centre: Tesco is to open a major new distribution hub in Poland, ending speculation the grocer was gearing up to abandon the Eastern European market.
Poor spring weather brings a chill to H & M sales but expansion continues: Cool spring weather in many of its markets was to blame for disappointing sales in the first half of the year at Swedish clothing giant H & M, as it warned of ''challenging'' times for fashion retailers.
Whitbread investors rebel after Sir Ian Cheshire misses board meetings: More than a quarter of Whitbread shareholders have staged a revolt against the re-election of Sir Ian Cheshire as a non-Executive Director of the company, after the former Kingfisher Boss missed three of its board meetings last year.
Thousands of City workers prepare for long night after Brexit poll: Thousands of City workers are preparing for extra overnight shifts and early starts to handle the avalanche of trading activity expected to follow the EU referendum.
The Questor Column:
Sell Debenhams shares as turnaround stumbles: The turnaround at Debenhams, the U.K.''s second-largest department store Owner, has stalled and we think the business model will struggle to deliver long-term value for retail investors. Debenhams reported like-for-like sales down 0.2% in the 15 weeks to June, and down 1.6% if we assume that currency didn''t move during the period. That leaves like-for-like sales up an anaemic 0.7% in the 41 weeks to June 11. The profitability is also being squeezed. Debenhams now expects the gross profit margin for the full-year to be flat, and warned that costs are likely to rise as much as 4% due to the living wage. The focus on digital is a positive step as online sales increased 7% during the 15 weeks to June, and half of all those orders came from mobile devices. The incoming Chief Executive, Sergio Bucher, comes from a background at Amazon fashion, Nike and Inditex, and will replace the outgoing Michael Sharp in October. The business is saddled with debt, and tied into long-term leases for stores, warehouses and offices, some with escalating rent clauses. The company caries net debt of 224 million against net assets of 853 million, and the off-balance sheet liabilities for future lease payments of more than 200 million a year for the next 20 years, which at 4.7 billion is more than five times the company''s market value. Debenhams'' has focused on using cash to pay down the revolving credit facility effectively a corporate overdraft and it has been reduced from 425 million to 320 million during the past two years. The business looks like a cash machine, but first in the queue are debt holders and lease holders. Any slowdown would see the dividend come under pressure and expose shareholders to a painful loss of capital. Sell. Debenhams at 69.7p-4.55p. Questor says ''Sell''.
The Guardian
British financial sector sure of EU remain vote despite late FTSE dip: The City remains confident that the U.K. is on course to remain a member of the EU despite a late flurry of sell orders after a new opinion poll boosted Brexit supporters just as the London stock market closed.
FTSE 100 could lose up to 350 billion in Brexit vote, says UBS: Nearly 350 billion could be wiped off the value of Britain''s top companies in the event of a vote for the U.K. to leave the European Union, analysts at UBS have warned.
Union urges M & S to open talks about pay and pension changes: The shopworkers'' union has urged Marks & Spencer to open talks as long-serving staff have been told new contract terms will be imposed if they do not voluntarily sign up to pay and pension changes that could leave them thousands of pounds out of pocket.
George Soros wrong on Brexit and U.K. economy, says City economist: One of the City''s leading economists has countered George Soros''s prediction that a Brexit vote will lead to a damaging 20% fall in the value of the pound by saying that a depreciation would be good for the economy.
Volkswagen''s handling of emissions scandal a shambles, say investors: Volkswagen shareholders have accused its Executives of overseeing a shambles and demanded changes to the management structure in the first annual meeting since the carmaker became embroiled in a diesel emissions scandal.
Daily Mail
Retail giants to save 2,700 high street jobs: Sir Philip Green to offer BHS staff work at Arcadia as Morrisons pledges to help My Local workers: Sir Philip Green and supermarket chain Morrisons have offered comfort to nearly 2,700 high street workers facing job losses this summer. Topshop tycoon Green is to offer 1,000 BHS staff jobs at his Arcadia empire after the department store collapsed in April.
No Beyonce boost for H & M: Superstar''s ad campaign struggles to drum up demand as cold weather puts dent in sales: The Swedish fashion chain, which has more than 250 stores in the U.K., posted a 17% fall in profit for the second quarter to 577 million.
Daily Express
Holidaymakers dash to change pounds amid uncertainty over EU referendum result: Worried Britons are rushing to change pounds for euros and U.S. dollars ahead of today''s European membership referendum.
Europe''s regulations are ''attacking banks and American rivals will prosper'': Banks are pleading with European politicians to change regulation they say will put them at a disadvantage against American competitors.
Project fear blow: Rental market will ''carry on as normal after Brexit'': Britain''s rental market would carry on functioning healthily if the U.K. votes to Leave the EU, according to letting agents.
The Scottish Herald
Rural pubs still toiling in Scotland: More than half of Scottish licensed trade outlets reported a decline in beer sales in the first half of the year, as government legislation including the lower drink drive limit and the minimum wage continued to weigh on the sector.
FanDuel cool on merger talk as it takes U.K. bow: Fanduel Boss Nigel Eccles has declared the Edinburgh-based fantasy sports company does not have to merge with another business to fight the regulatory challenges facing the sector in the U.S.
Knight Frank central belt expansion prompted by record profits: Real estate firm Knight Frank has moved to larger premises in both Glasgow and Edinburgh on the back of delivering two consecutive years of record profits for its commercial property division.
Ayrshire firm targets windfarm support work after multi-million pound investment: Ayrshire-based Maritime Craft Services (Clyde) has added a 24th vessel to its fleet following a multi-million pound investment as it targets work windfarm support work.
RBS Greek shipping sale rumoured: RBS IS reported to have received bids for its Greek shipping finance business which is worth about $3 billion as it looks to scale down on non-core activities.
Aberdeen''s five-star Marcliffe hotel makes loss after sale falls through: Marcliffe Hotel and Spa in Aberdeen has made a loss for the first time in 20 years after a deal to sell to Stewart Milne Group fell through.
The Scotsman
Alexander Dennis profits soar on record overseas sales: Booming international sales have helped annual profits at Falkirk-based bus maker Alexander Dennis (ADL) surge by 77%.
Subsea engineer to cut 430 U.K. jobs amid oil slump: Offshore engineering firm Subsea 7 has announced plans to cut up to 430 jobs in the U.K., mostly in Aberdeen.
Chris Stewart to redevelop Edinburgh office block: An office block in the heart of Edinburgh has been sold in a multi-million-pound deal to the property firm behind the capital''s award-winning Advocate''s Close development.
Royal Bank of Scotland to axe 900 more jobs: Royal Bank of Scotland is to cut an additional 900 jobs, having recently unveiled plans to shed hundreds of roles as it scales back its branch network.
Dumfries'' Cuckoo Bridge retail Park sold for 20.2 million: The Cuckoo Bridge Retail Park in Dumfries has been acquired by property investor NewRiver Retail for 20.2 million.
City A.M.
Shares in bookseller Barnes & Noble jump as it adapts to Amazon challenge: Shares in Barnes & Noble jumped following the book giant''s latest set of results which showed it''s adapting to the challenge from Amazon.
Ex-Deutsche Bank trader pleads guilty to Libor-rigging charges in U.S.: A former Deutsche Bank trader has pleaded guilty to Libor-rigging related offences, court records revealed.
U.S. alternative lender Trade Finance Solutions opens London office on the road to global growth as Europe Chief dismisses Brexit worries: U.S. alternative lender Trade Finance Solutions (TFS) has opened a London office as it targets further expansion outside of North America.
Responsible Gambling Trust appoints non-betting industry chair of trustee board: A leading gambling sector charity has appointed a new independent chair of its board of trustees who has not come from the betting industry for the first time.
Saudi may resume swing producer status once the oil market recovers: Saudi Arabia could resume its mantle as the world''s major swing producer, with the ability to determine oil prices, once the battered global market has recovered.
Waning Brexit fears fail to keep oil above $50 after disappointing data: Crude slipped below $50 per barrel this afternoon following lacklustre U.S. oil data, with investor calm ahead of the EU referendum failing to provide enough support.
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