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Friday Papers: China risks debt reaching saturation

And David Davis draws up plans for no deal on Brexit talks as PM May faces EU.

Friday Papers: China risks debt reaching saturation

Top stories

  • The Daily Telegraph: China’s central bank has warned in the clearest language to date that extreme credit creation and trouble in the shadow banking system could lead to a full-blown financial crisis.
  • The Times: The Brexit secretary David Davis is to present an upbeat assessment of a “no-deal” Brexit to the cabinet in a big shift in Britain’s negotiating strategy.
  • Financial Times: Switzerland’s Nestlé expects sales growth this year to weaken further from 2016’s historical low as it accelerates a restructuring programme and puts greater emphasis on boosting profitability.
  • Financial Times: Unilever, the consumer goods group that fought off a $143 billion takeover bid from Kraft Heinz this year, said growth in its third quarter had been hit by poor weather in Europe and the hurricanes in the Americas.
  • Financial Times: Xavier Rolet will step down as chief executive of the London Stock Exchange Group by the end of next year, bringing to an end a nine-year tenure that has transformed one of the City’s most high-profile institutions.
  • Financial Times: Google parent Alphabet has led a $1 billion investment in Lyft, Uber’s biggest rival, in a move that sharply escalates the fierce competition between the two leading US ride-hailing companies.

Business and economics

  • Financial Times: Nissan is suspending car production for the Japanese market after admitting unauthorised workers were certifying vehicles even after discovery of malpractice at the group in a deepening of the inspection scandal.
  • Daily Mail: The pound sagged after official figures showing a slip for retail sales in September had currency traders dialing down expectations for a rate rise this year.
  • Financial Times: SAP, the first major German company to post third-quarter earnings, warned a strengthening euro could be a significant drag on its operating profit in the final quarter of the year.
  • The Daily Telegraph: Lloyd Blankfein, chairman and chief executive of Goldman Sachs, has hinted that the City of London could lose out to Frankfurt in the wake of Brexit.
  • The Times: The Barclay brothers are expected to collect a dividend of up to £200 million from Shop Direct as part of a refinancing of the digital retailer.
  • The Daily Telegraph: Apple was dragged down more than 2% on Thursday amid criticism its staggered release of the new range of iPhones has hampered demand for the iPhone 8 as buyers hold out for the higher-end model.
  • The Daily Telegraph: Shares in beleaguered gold miner Acacia surged as much as 30% after its majority owner Barrick revealed it had struck a tentative deal to resolve a bitter dispute with the Tanzanian government.
  • The Daily Telegraph: Travis Perkins, the UK's biggest supplier of building materials, has reassured investors that it is on track to meet City forecasts as it posted an uptick in sales despite a "challenging" backdrop.
  • The Times: IWG, which owns Regus and operates in nearly 3,000 locations across 115 countries, warned on profits for the full year as it admitted that sales in the third quarter had not been as strong as hoped.
  • The Times: The old Eddie Stobart empire, which is now focusing on airports and incinerators, has slipped into the red after all but exiting the trucking game.
  • Financial Times: Genel Energy said it was business as usual at its operations in Iraqi Kurdistan despite the crisis in relations with the central government in Baghdad, as improved cash flow helped ease financial pressure on the UK-listed oil producer.
  • The Daily Telegraph: Ken MacKenzie, the new chairman of mining behemoth BHP Billiton, took the opportunity of his first AGM in post to defend his chief executive Andrew Mackenzie and deliver a swipe at activist investor Elliott Advisors.
  • The Daily Telegraph: Carl-Henric Svanberg, the man tasked with steering the BP board through one of the worst disasters in corporate history, will step down from his role as chairman after seven years.
  • Financial Times: The FBI has opened an investigation into US links to South Africa’s Gupta family, escalating a political scandal over the three brothers’ alleged use of their friendship with President Jacob Zuma to control state business, according to people familiar with the matter.
  • Daily Mail: HSBC and Standard Chartered face investigations over their alleged role in laundering £400 million linked to the controversial Gupta family.
  • Financial Times: Barrick Gold has agreed to cede 16% of Acacia Mining’s three mines in Tanzania to the state and pay $300 million as the first steps towards settling a six-month dispute over its subsidiary’s operations.

Share tips, comment and bids

  • The Times (Tempus share tips): HOLD eBay; AVOID Travis Perkins.
  • The Times: Helly Hansen, Norwegian outdoor clothing company, has snapped up Musto, the nautical clothing retailer favoured by the Queen and the Duchess of Cambridge, after an auction process that began in May.
  • The Guardian (Comment): Bombardier’s vulnerability is a bad omen for post-Brexit Britain.
  • Financial Times (Lex): Xavier Rolet/LSE: chief has busted some good moves over 8 years.
  • Financial Times (Lex): Abertis bids: neither of the two bids for the Spanish group is compelling.
  • Financial Times (Lex): The next crash: traders are wiser and more diversified but still vulnerable to shock of the unknown.
  • Financial Times (Lex): LG/Qualcomm: investment in the connected car parts industry cleverly utilises existing expertise.
  • Financial Times (Lex): American Express: consumer lending is lucrative - and dangerous.

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