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Friday Papers: L’Oréal’s luxury arm spurs 9% sales rise

And Rio Tinto chief has warned miners to prepare themselves for extended downturn.

Friday Papers: L’Oréal’s luxury arm spurs 9% sales rise

Top stories

  • Financial Times: French cosmetics group L’Oréal outstripped analysts’ expectations in the fourth quarter, spurred on by the North American market and strong sales of its luxury products.
  • Financial Times: The mining industry must prepare for an extended downturn, Rio Tinto’s chief executive said as the Anglo-Australian group bowed to the pressure of falling commodity prices by ending an era of rising payouts for investors.
  • Financial Times: Global financial markets endured a day of turmoil as investor fears rose over the cost to banks of negative borrowing rates imposed by central banks desperate to stimulate flagging economies.
  • The Guardian: The US Securities and Exchange Commission is investigating whether Boeing properly accounted for the costs and expected sales of two of its best known jetliners.
  • Financial Times: Société Générale signalled it may struggle to meet its profitability targets this year because of “headwinds” that include record-low interest rates and volatile financial markets.
  • The Daily Telegraph: The Japanese yen has become the lightning rod of extreme stress in the global financial system, rocketing this week in violent moves that threaten to plunge Japan back into deep deflation and overwhelm the experiment of "Abenomics".

Business and economics

  • Financial Times: Janet Yellen said the Federal Reserve was keeping open the option of taking interest rates negative as headwinds grow in the global economy but played down the likelihood of such a move.
  • Financial Times: US authorities have now wrung a total of $64 billion from financial institutions that sold toxic mortgage securities before the crisis, with Morgan Stanley’s agreement on Thursday to pay $3.2 billion.
  • Daily Mail: The price of oil fell back to 12-year lows yesterday amid global growth fears; record US supply figures, the prospects of weaker demand, and a forecast by Goldman Sachs that the price will stay low for the rest of this year all helped push the price down.
  • Financial Times: India’s central bank governor Raghuram Rajan has warned that the country must brace for more than a year of “deep surgery” to repair its damaged banking system, raising fears that tough action on bad loans could slow economic recovery.
  • The Daily Telegraph: Swedish interest rates have been pushed deeper into negative territory, as the country’s central bank became the latest to introduce monetary stimulus in a world of falling oil prices.
  • Financial Times: Indonesia has announced plans to liberalise rules on foreign investment in a number of industries, as President Joko Widodo strives to jump-start growth and draw investors to Southeast Asia’s largest economy.
  • The Independent: A top Google boss giving evidence to MPs about the company’s tax deal has admitted he doesn’t know how much he gets paid; Matt Brittin, the President of Google’s European, Middle Eastern and African arm, told the Public Accounts Committee that he was not sure what his basic salary even was.
  • The Guardian: The former boss of Sainsbury’s has waded into the row over the tax paid by multinationals such as Amazon and eBay, saying it was unfair that that traditional retailers must pay huge rates bills for services such as roads and waste collection, while their online rivals paid little but received the same benefits.
  • Financial Times: The chief executive of Mylan has defended the takeover of Sweden’s Meda after investors responded with a sharp sell-off of the drugmaker’s shares.
  • The Daily Telegraph: Starwood Hotels & Resorts is to take its W Hotels brand to Scotland after agreeing a deal to operate a new hotel being built in Edinburgh city centre.
  • Financial Times: Henderson and Ashmore have demonstrated the contrasting fortunes of diversified asset managers and emerging market specialists over the past year, with two very different sets of results.
  • Financial Times: Royal Bank of Scotland has poached a senior banker from JPMorgan Chase to head its private bank Coutts, as Michael Morley steps down after seven years at the helm.
  • Financial Times: Thomas Cook warned that terror attacks in Paris and Istanbul hurt demand for summer holidays and put a damper on bookings and revenues at the end of last year.
  • The Independent: The number of active Twitter users failed to rise in the last three months of 2015, the social network has reported, as it continues to struggle.
  • Financial Times: Total is to accelerate cuts to capital spending in the wake of the oil price collapse that has sent profits tumbling and triggered billions of dollars in write-offs.
  • Daily Mail: Profit slumped at Jaguar Land Rover as the Indian-owned car maker sold record number of cheaper vehicles.
  • Financial Times: BNP Paribas is reining back lending to the US energy sector, potentially tightening a squeeze for cash-strapped producers struggling with the collapse in oil prices.
  • Financial Times: Adidas bucked the gloom enveloping European markets by raising its sales and profit forecasts for 2016 and posting better than expected results for 2015.
  • Financial Times: Manchester United's revenue rose 26.6% year-on-year to £133.8 million in the three months to December, slightly topping analyst forecasts of £125.9 million.
  • Financial Times: HSBC has dropped plans to freeze pay for the year after staff protests forced an abrupt U-turn less than two weeks after it was revealed the bank would impose a pay and hiring suspension.
  • Financial Times: Tate & Lyle, the British ingredients maker that is in a turnround, said weaker currencies would lower its reported full-year profits to “modestly below” last year’s results.
  • The Daily Telegraph: Uber has agreed to pay $28.5 million to settle a lawsuit brought by customers who alleged the ride-hailing service misrepresented the quality of its safety practices and the fees it charged passengers.
  • Daily Mail: Clarks is set to axe 170 head office jobs as footwear firm is hit by slowing sales and increasing competition.
  • The Independent: Sainsbury's has said it will be the first UK retailer to call time on multi-buy and buy-one-get-one free promotions.

Share tips, comment and bids

  • Financial Times: Theranos has been warned by its partner, the US pharmacy chain Walgreens, that it could pull the plug on their high-profile collaboration unless the blood testing start-up rectifies failings at one of its laboratories, according to people close to the matter.
  • Financial Times: Lending Club, the world’s biggest marketplace lender, announced a share buyback programme and stressed its durability in a downturn, as it attempted to turn round its free-falling stock price.
  • Financial Times: Shire has called a halt to the $50 billion acquisition spree that has transformed the London-listed drugmaker over the past three years as it shifts focus to integrating assets and launching new products.
  • The Daily Telegraph: SuperGroup founder Julian Dunkerton is selling a 4.9% stake worth £53 million in his first share sale since the fashion retailer listed on the stock market six years ago.
  • The Guardian (Comment): Pharma's woes: profits, policies and patients as NHS England tries to save money on drugs.
  • Financial Times (Comment): Negative rates haunt global bank stocks.
  • Financial Times (Lex): Société Générale: bank tries to woo jilted shareholders but gets slapped around the chops.
  • Financial Times (Lex): Pernod Ricard: French group’s efforts to boost US sales are paying off.
  • Financial Times (Lex): A crude rule of thumb: naive extrapolation of oil supply and demand patterns is risky.
  • Financial Times (Lex): Rio Tinto: Rio now promises to only pay shareholders what it can afford.
  • Financial Times (Lex): Tesla: the latest cash flow goal should be met, the alternative is grim.

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