In the papers: Credit Suisse, Burberry, Airbnb
Date
7/19/2016 8:22:59 AM
(MENAFN- ProactiveInvestors - UK) Proactive Investors, Thu
The Times
Markets gamble on interest rate cut: The Bank of England is tipped to slash interest rates to a record low in a pre-emptive strike to head off a Brexit-related slowdown and encourage investment.
Don%E2%80%99t talk down Britain, Bank is warned: The Bank of England and Treasury have come under fire again for their strong advocacy of remaining in the European Union and have been warned not to 'talk down' the economy.
National Grid seeks help keeping lights on: Dozens of companies are set to submit bids this week for one of the world%E2%80%99s biggest energy storage projects, supplying back-up power for the National Grid.
Stansted has sights on second runway: Two of Britain%E2%80%99s busiest airports expect to suffer a Brexit-related slowdown in growth over the next couple of years, but their Owner argues that one of them will still be so congested by 2030 that it will need a new runway.
Industrial slowdown raises fears for Eurozone%E2%80%99s health: Fresh doubts about the strength of the Eurozone economy emerged when poor figures from the industrial sector suggested that growth would remain sluggish at best.
Firms leave investment on the shelf: Companies have cut plans to invest for the first time in three years because of the vote to leave Europe, according to Credit Suisse.
Pub Boss slams Brexit 'doom-mongering%E2%80%99: The Boss of JD Wetherspoon hailed the Brexit vote as a victory for democracy and launched a scathing attack on David Cameron, George Osborne and Mark Carney for their 'irresponsible doom-mongering'.
Pound%E2%80%99s fall helps to lift Burberry out of trenches: Burberry has benefited from the post-referendum fall in the pound and alerted shareholders to expect bigger profits this year if the currency remains weak.
Bloomsbury gets down to business: The company behind Harry Potter hopes to transform itself into a more staid business-to-business publisher as part of a medium-term growth strategy. Bloomsbury, best known for the JK Rowling series, held a capital markets day in London and highlighted the 3.4 billion academic books market as a target for its future growth.
The Independent
Brexit: U.K. sells government debt at all-time record low interest rate in wake of EU referendum result: The U.K. has sold government debt at a new record low interest rate, reflecting a massive appetite from investors for safe-haven assets amid the on-going financial turmoil and uncertainty created by the Brexit vote.
Ex-Fortress investment group employee with motor neurone disease sues his firm for disability discrimination: Michael Johnson, a former Executive at Fortress Investment, is suing his company for firing him as he was undergoing treatment for motor neurone disease (MND), a degenerative syndrome.
Airbnb is partnering with American Express GBT, BCD Travel and Carlson Wagonlit to snare business travellers: Airbnb is expanding into business travel after signing a deal with three travel management companies that could pose a threat to the hotel industry.
China suspends building of new coal power stations as electricity demand declines: China is to stop granting permission for new coal-fired power stations until at least 2018, according to state media reports.
The Daily Telegraph
Arms companies charged taxpayer for Xmas parties and charity donations, says defence spending watchdog: Arms companies have padded defence contracts to the tune of 61 million with costs including 'charitable donations', Christmas parties and commemorative mugs.
House prices to fall in post-Brexit tumble: The number of people wanting to buy a house has fallen to the lowest level since mid-2008 amid post-referendum uncertainty, according to the Royal Institution of Chartered Surveyors.
Hinkley Point subsidy bill quadruples as power price forecasts fall: The subsidy bill to be paid by households and businesses for Hinkley Point has more than quadrupled since the agreement for the new nuclear plant was signed in 2013, the National Audit Office has said.
Chinese exports fall sharply amid weak global demand: Chinese exports fell sharply in June amid weak demand and a raft of uncertainties facing the global economy. Exports fell 4.8% compared with a year earlier, according to official data, while imports dropped by 8.4%, against expectations of a 5% decline.
Whitbread to scrap Premier Inns business in India and South East Asia: Whitbread is to pull its Premier Inn business out of India and South East Asia in what marks the company%E2%80%99s first major change of strategy under its new Boss, Alison Brittain.
Executive pay back on the agenda after Brexit: The complexities of Executive pay packets could move up the agenda following the EU referendum vote, as investors capitalise on Theresa May%E2%80%99s calls for companies to be more responsible citizens, a leading remuneration firm has said.
Investment projects on ice after big firms cut borrowing in run up to EU referendum: Investment projects in the U.K. could already be on hold after official figures revealed Britain%E2%80%99s big businesses cut back on borrowing from banks in the run up to the EU referendum.
Dixons Carphone sets out 1 billion services goal: Dixons Carphone has declared war on its high street phone repair rivals as part of a bold strategy to build a 1 billion business from the technology services it can offer alongside its sales of mobile phones, gas cookers and fridges.
Towergate fined 2.6 million for failing to ringfence client money: When Towergate found an unexpected 1.45 million from interest payments in its bank accounts in 2013, the money was not the pleasant windfall that it first appeared.
The Questor Column:
B & M is a bargain after rival Poundland limps off the stock market: Poundland is being walked off the market after just over two years as a public company, leaving shareholders who bought in at the start with losses of 26% and a bruising lesson that no bricks and mortar retailer is immune to the pressures on the high street. B & M joined the stock market in June 2014, exactly three months after Poundland took the plunge. Unlike Poundland, B & M offers products at varying prices, with frying pans crammed next to flower pots underneath soap, in what the retailer likes to call the 'treasure hunt browsing experience'. Analysts have raised the idea of Poundland becoming a multi-price retailer once it is absorbed into the Steinhoff conglomerate, putting its plastic toy tanks firmly on B & M%E2%80%99s lawn. B & M wants 850 stores in the U.K., and opened 74 new sites last year as it took advantage of nervous landlords to secure decent rent deals. This aggressive pace of new openings helped push revenues 24% higher to 2.04 billion in the year to March, although the pace of growth has moderated from 29.5% in the prior year, and margins have waned slightly. B & M opened two new warehouses in the past year, showing it is happy to invest in its growth plans, and sending capital expenditure up 57% to 56.2 million. Meanwhile, the firm now has 56 Jawoll stores in Germany, which generate almost a 10th of overall revenues offering a diverse source of sales if the picture in Britain becomes even gloomier. With B & M%E2%80%99s ambitions lying beyond a takeover, there is still plenty of space for growth. Buy. B & M European Value Retail at 256.2p-1.4p. Questor says 'Buy'.
Playtech: Shares in Playtech have climbed 3.6% after the gambling software business revealed it was buying a competitor for 138 million (116 million), writes Ben Martin. The acquisition is expected to boost the FTSE 250 company%E2%80%99s profits, so is now a good time to take a punt on Playtech stock? Playtech, which was founded by Israeli billionaire Teddy Sagi, has a dominant position in the gambling software industry, supplying products to some of the U.K.%E2%80%99s biggest bookmakers, including Ladbrokes and Coral. The cash acquisition of 90% of Vienna-based Best Gaming Technology (BGT), which provides software to about 24,000 self-service betting terminals, looks an attractive deal. Last year, BGT posted 41.6 million of revenues all from regulated, so less risky, territories and adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of 12.9 million. Playtech said the deal valued BGT at under seven times forecast 2016 Ebitda, which it described as 'a highly attractive multiple'. Morgan Stanley analysts estimate the acquisition will lift Playtech%E2%80%99s annual earnings per share by about 7%. Questor believes BGT is a far better bet for Playtech than the two financial trading firms it failed to buy last year when it encountered regulatory resistance. However, Questor is concerned about Playtech%E2%80%99s high overall exposure to unregulated territories. It is also worrying that many deals that Playtech has carried out in the past have been with firms linked to Mr Sagi, who still holds 33.8% of the company. We would not advise that investors add to their shareholdings following this deal. Hold. Playtech at 845p+29p. Questor says 'Hold'.
Shire set for eye-watering sales after key ophthalmology drug wins approval: Dr Ornskov - and Shire%E2%80%99s investors - have big reason to celebrate. The regulatory green light for Lifitegrast comes nine months after the U.S. Food and Drug Administration (FDA) declined to approve the treatment for dry eye disease, requesting more information related to its quality, as well as data from an additional clinical study. 's long-awaited approval means that Lifitegrast, to be sold under the brand name Xiidra, will be a game-changer for rare disease specialist Shire. The drug, which is the first prescription eye drop treatment for dry eye disease to be approved by the FDA in a decade, will be launched into the U.S. market in the third quarter of this year. Shire is already in discussions with European regulators and plans to file there and in Canada and Japan shortly after U.S. launch. Admittedly, Xiidra will be second to market. Xiidra aside, Shire has a promising ophthalmics pipeline. Earlier this year, Shire acquired Baxalta for 32 billion, creating one of the world%E2%80%99s biggest rare disease specialists. The takeover will double Shire%E2%80%99s annual revenues to $20 billion by 2020 and will also protect Shire from future advances from larger rivals, due to the sheer size of the combined company. Pharma stocks have held up well following the market volatility caused by the EU referendum result because the sector is considered a safe-haven in times of uncertainty. Market volatility is, therefore, immaterial to a company like Shire. And, with profits expected to increase at a compound annual growth rate of 13% through to 2020 that makes the shares, which are trading on a forward PE ratio of just 13, look too cheap. Shire at 49.75, +3.26%. Questor says 'Buy'.
The Guardian
Bank of England could cut interest rates to halt U.K. recession: The Bank of England could cut interest rates and inject billions of pounds into the financial system as early as Thursday as policymakers seek to prevent Britain sliding into recession after the EU referendum.
Housing sales forecast to fall sharply this summer after Brexit vote: The number of homes changing hands is expected to slump this summer in the wake of the U.K.%E2%80%99s vote to leave the EU, with estate agents and surveyors more pessimistic about the housing market than at any point since the late 1990s.
Lidl and Aldi offer complete school uniforms for under 4: The German discount supermarkets Lidl and Aldi have sparked a new school uniform price war, with each chain offering an entire outfit for less than 4.
Struggling Poundland agrees to 597 million takeover by Steinhoff: Poundland has agreed to a 597 million takeover by Steinhoff, the South African retail conglomerate that owns Harveys and Bensons for Beds in the U.K.
Jaguar Land Rover to test 100 self-driving cars in U.K. by 2020: Jaguar Land Rover has said it will create a fleet of more than 100 research vehicles over the next four years to test autonomous and connected technology, with the first hitting the streets later this year.
Daily Mail
Theresa May urged to block German takeover of London Stock Exchange as one of her first acts as Prime Minister: Theresa May has been urged to block a German takeover of the London Stock Exchange as one of her first acts as Prime Minister.
Energy bills set to go up by 117 per year by 2030 according to Government body: Energy bills will go up by 117 per year by 2030 according to a Government body.
Burberry to axe staff as it scrambles to cut costs in wake of sales in Hong Kong and China sinking by a fifth: Burberry will axe staff as it scrambles to cut costs in the wake of sales in Hong Kong and China sinking by a fifth.
Daily Express
Eurozone to explode: Demand for referendums after Brexit puts currency on the brink: The Eurozone is set to be destroyed due to the poor economies of Greece and Italy, a leading economist has warned. Max Otte also said the demand for referendums in the wake of Brexit threatens to destroy the Eurozone as Brussels struggles to reform.
Armour materials maker Permali lands major defence contracts: As the Government announces a 365 million funding boost for aerospace innovation and a report on climate change highlights the risk flooding poses to businesses, manufacturer Permali shows how its materials technology is helping solve a wide range of defence dilemmas.
Household energy costs rise again post-Brexit: Home energy costs are rising once again, as utility companies scrap their cheapest fixed-rate tariffs. Gas and electricity suppliers are taking advantage of post-Brexit political uncertainty to hike charges in the hope that distracted householders fail to notice.
Merkel to push ahead with EU army following Brexit vote, says German defence Minister: Angela Merkel could press ahead with plans to create an EU army following Britain%E2%80%99s decision to leave the EU, according to the German defence Minister.
George Osborne resigns from Government as Philip Hammond named Chancellor: George Osborne has resigned from Government and Philip Hammond has been chosen to be the next Chancellor in Theresa May%E2%80%99s new cabinet.
The Scottish Herald
'Very acute fears%E2%80%99 of Scottish recession in wake of Brexit vote, after flat Q2: Scottish Chambers of Commerce says it has 'very acute fears' the economy north of the Border could fall into recession, citing the potential impact of the Brexit vote and recent weak performance.
Barratt Boss says rate cut would have positive impact: Barratt Developments Chief Executive David Thomas has said an interest cut by the Bank of England would be a positive move for the housebuilding industry.
Faroe sees shares surge after find confirmation: Shares in Faroe Petroleum have surged by more than eight% after the Norwegian Petroleum Directorate confirmed its latest find in the Brasse discovery.
Gama expects half-year earnings drop: Gama Aviation, the business aviation service provider with bases at Glasgow and Aberdeen airports, has flagged a drop in underlying earnings for the first half of its financial year.
Cairn lodges $5.6 billion claim against India: Cairn Energy is claiming $5.6 billion (4.2 billion) in compensation from the Indian government for the 'spurious' tax demand in which it said breached its international rights.
Oil industry adapting to lower prices: The oil industry has started to adapt to lower prices, cutting costs and getting more projects over the economic threshold, says a study by Wood Mackenzie.
Enterprise agencies%E2%80%99 spending 'cut 12% over six years%E2%80%99: Spending by Scotland%E2%80%99s two enterprise agencies has fallen by 12% in real terms in the last six years, with a new report warning resources may be spread too thinly to represent an efficient use of cash.
The Scotsman
Unilateral free trade 'would bring substantial benefits%E2%80%99: The U.K. economy can prosper if Britain ditches the European single market and embraces unilateral free trade in the wake of Brexit, economists have said.
Construction firm Esh sees profits drop after consolidation: Construction business Esh Group, which has major operations in Scotland, saw profits come under pressure from tough market conditions and costs of investment in IT last year.
Legal eagles Clancy Hendrie soar into Edinburgh property scene: A new brand has joined Edinburgh%E2%80%99s legal landscape and its established backers are already keen to corner one particular, growing market.
U.S. electronics group invests 380,000 in Borders plant: A U.S. electronics manufacturer is investing in an expansion of its Borders facility as it looks to increase its presence in the defence and aerospace sectors.
Wood secures North Sea deal extension with Apache: Wood Group, the Aberdeen-based energy services operator, has been awarded an extension to its 'master service agreement' contract with Apache, covering the U.S. giant%E2%80%99s oil and gas fields in the North Sea.
Glasgow dementia start-up wins place on U.S. accelerator: MindMate, a start-up that develops apps to help people affected with dementia live more independent lives, has secured a place on a renowned accelerator programme in New York.
City A.M.
Brexit brushed off by upbeat U.K. jobs market: The number of U.K. jobs available climbed in June, despite fears surrounding the last months vote to quit the European Union.
Yoga brand lululemon is opening a flagship store on Regent Street: Yoga apparel retailer lululemon is opening a 8,200 sq ft store in Regent Street.
Harrods Bank has become the first U.K. lender to sell gold online - and it%E2%80%99s launched an own-brand bullion bar: Harrods is looking to cash in on the rush to safe-haven assets, such as gold, by launching an online service for selling gold bullion bars.
Fraud squad charges logistics company plus seven individuals on alleged bribery related to Angolan oil: Seven individuals plus one company have been charged by the Serious Fraud Office (SFO) on grounds of alleged bribery involving Angolan oil.
Synergy finalises deal for 62 Airbus A320neo aircraft: Synergy Aerospace Corporation has finalised a deal with European plane-making giant Airbus to buy 62 A320neo aircraft, the two companies have announced.
GVC Holdings%E2%80%99 share price up almost five% as Euro 2016 and Bwin takeover drive revenue growth: Gaming services provider GVC Holdings%E2%80%99 share price was lifted after the company celebrated a revenue boost from its acquisition of Bwin and 'favourable' results from the Euro 2016 championships.
Insurers turn their back on M & A and look for alternative ways to grow: The number of completed mergers and acquisitions in the insurance sector has slumped in recent months, a report out has found.
Proactive Investors