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Friday Papers: UK set to agree $2bn loan guarantee for Saudi Aramco

And foreign bank lending to China hits record high despite as lenders are profiting from Beijing’s effort to curb domestic debt.

Friday Papers: UK set to agree $2bn loan guarantee for Saudi Aramco

Top stories

  • Financial Times: The British government is poised to sign off a $2 billion loan guarantee for Saudi Aramco as London seeks to host the stock market flotation of Saudi Arabia’s state energy group, billed as the largest ever initial public offering.
  • Financial Times: Lending to China by international banks hit a new high in the first half of 2017, as Beijing’s deleveraging campaign led to tighter domestic credit conditions, pushing corporate borrowers offshore; foreign banks’ total exposure to mainland China hit $1.89 trillion at the end of June, up from $1.67 trillion six months earlier and surpassing the previous record of $1.84 trillion at the end of 2014, according to the report.
  • The Times: Britain’s economy will trail the eurozone for each of the coming three years as its growth falls to the bottom of the European Union’s 28 members, according to official forecasts from Brussels.
  • The Daily Telegraph: National Grid is training the focus of its multi-billion pound investment effort on the US as political scrutiny in the UK mounts.
  • Financial Times: Higher taxes will be placed on new diesel vehicles in the UK in this month’s Budget, as the government tries to nudge drivers towards less polluting alternatives.
  • Financial Times: Burberry, the maker of £1,400 trenchcoats and £500 bandannas, said it would plough an extra £50 million a year into glitzier stores and better technology to establish itself “firmly in luxury” - a plan that sent its shares down by 10% on Thursday.

Business and economics

  • Financial Times: Shares in Vestas plunged 20% after the world’s largest wind turbine manufacturer lowered its profit guidance on the prospect of cuts in US subsidies.
  • The Times: The French car giant PSA has insisted it that will bring its Opel and Vauxhall brands into profit by 2020 without plant closures or compulsory job losses.
  • Financial Times: Emirates Airline more than doubled its first-half net profit as the Gulf’s largest carrier showed signs of a recovery following a tough year for the region’s airlines.
  • The Times: Booming demand in China for Jaguar Land Rover has made up for flagging sales in Britain and Europe as the carmaker reiterated its concern over the impact of Brexit.
  • Daily Mail: A successful advertising push helped Superdry toast a surge in half-year sales; sales jumped 25.2% to £756.3 million in the half year to 28 October – with retail sales up 12.8% and wholesale revenues up 43.1%.
  • The Times: Hammerson, whose portfolio includes the Bull Ring in Birmingham and the Brent Cross shopping centre in north London, recorded a 17% rise in leasing activity between July and September compared with a year earlier.
  • The Times: Coca-Cola Hellenic Bottling Company, the FTSE 100 soft drinks group, reported a forecast-beating 6% increase in underlying third-quarter revenues, well ahead of the majority of its consumer goods peers.
  • Financial Times: German industrial giant Siemens reported a big rise in net income on Thursday, although the results were marred by losses at the company’s renewables division and a “significant decline” at the power and gas unit.
  • Financial Times: AstraZeneca said drug sales fell again in the third quarter but that the pace of decline had slowed, as its chief executive touted the potential of new medicines to replace blockbuster products that are losing patent protection.
  • The Daily Telegraph: The low oil price continues to cause problems for Rolls-Royce’s struggling marine division, the blue-chip engineer has warned.
  • Daily Mail: Halfords is facing a £25 million hit from the slump in the pound because it ships its bikes into the UK from overseas.
  • The Times: The rising price of cream and butter sent profits back by almost three quarters at the spreads business of Dairy Crest, which produces the Country Life brand.
  • The Daily Telegraph: Equifax on Thursday reported a lower third-quarter profit as costs from the credit reporting bureau's recently disclosed data breach that exposed deeply sensitive information on 145.5 million people began to mount.
  • The Guardian: Shoppers are not “pulling on the handbrake”, the chief executive of Sainsbury’s insisted as he blamed a soggy August for a recent slowdown in sales growth.
  • Financial Times: Inmarsat shares crashed to a five-year low after the satellite company dropped its profit guidance for the year and warned that its fast-growing aviation business may not be as profitable as expected.
  • The Daily Telegraph: Janus Henderson said it will save millions more than expected from its recent merger after cutting its workforce and transferring some jobs to BNP Paribas.
  • The Daily Telegraph: The battle between the London Stock Exchange and one of its top shareholders has heated up after Sir Chris Hohn called for a formal shareholder meeting aimed at toppling the exchange's chairman.
  • The Daily Telegraph: Regional airline Flybe will hand back six planes this year as it slims down its fleet in a bid to overcome overcapacity problems.
  • Financial Times: A $1 billion lawsuit against Barclays must be postponed for more than 18 months to protect the integrity of a parallel criminal trial where the bank and its former chief executive are defendants, a court has ruled.
  • Financial Times: Noble Group, the debt laden commodity trader, said its survival plan hinges on selling a further $1 billion worth of assets and finding a strategic backer for the group’s remaining coal, liquefied natural gas and freight operations.

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The Accumulator: FTSE see-saws on trade war fears

by Michelle McGagh on Jun 22, 2018 at 14:57

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