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Saturday Papers: More banks warn of US tax reform charges

And new car sales sink for first time in six years amid pollution warnings and slipping consumer confidence.

Saturday Papers: More banks warn of US tax reform charges

Top stories

  • Financial Times: Deutsche Bank has warned that it will record its third consecutive annual loss in 2017 because of a €1.5 billion hit from US tax reforms and a 22% fall in trading and financing revenues in the fourth quarter.
  • The Daily Telegraph: New car sales suffered their first annual drop in six years in 2017 as drivers shun diesel cars amid higher taxes and warnings over pollution; the decline in new car sales is the biggest since 2009 when households tightened their belts in the aftermath of the financial crisis.
  • The Times: Cryptocurrency users, including in Britain, have had their prepaid debit cards abruptly locked as part of a surprise crackdown by Visa.
  • The Daily Telegraph: The FTSE 100 climbed above 7,700 to a second straight record close today as buoyant markets shrugged off a disappointing jobs report in the US.
  • Financial Times: The hourly productivity of British workers jumped at the fastest rate for six years during the third quarter of 2017, raising hopes for a turnround in one of the UK economy’s most persistent weaknesses.
  • Financial Times: Companies are rushing to update computer systems to patch security flaws revealed this week that affect chips used in almost every device - despite fears that the fixes will slow down their performance.

Business and economics

  • The Times: President Trump sustained a searing rally in America’s labour market in 2017, with recorded job gains of above two million for the seventh straight year.
  • The Times: Oil prices dipped from heights last seen in 2015 yesterday as a leap in American production undermined a 10% rally driven by supply disruptions and political tension in Iran.
  • The Guardian: House of Fraser is seeking to cut the size of stores in an effort to slash its rent bill after a tough Christmas.
  • The Daily Telegraph: Topshop has begun its belated push into China, arriving in the market almost a decade after its high street rivals.
  • The Daily Telegraph: Apple has said that all iPhones, iPads and Mac computers are vulnerable to a major security flaw that leaves the devices open to hacking.
  • The Guardian: Coca-Cola is to use smaller bottles and sell at higher prices rather than alter its famous sugar-laden secret recipe, while Irn-Bru faces a growing consumer backlash over fears a new lower sugar version will ruin Scotland’s national soft drink.
  • The Times: All coal-fired power plants will be closed by October 2025 unless they have been updated with technology to slash carbon emissions.
  • The Daily Telegraph: Virgin’s Sir Richard Branson has blamed Network Rail’s delayed upgrade to the East Coast mainline for cutting short control of the franchise and claimed he and partners Stagecoach had lost more than £100 million between them.
  • The Times: The former chief economist of Goldman Sachs has played down concerns the Wall Street bank could move thousands of staff from London as a result of Brexit.
  • Financial Times: MPs have called for a 25p “latte levy” to be added to the price of a takeaway coffee to cut back on the billions of disposable cups thrown away each year in the UK.
  • Financial Times: Mark Mobius, one of the pioneers of emerging market investing, has announced he will retire at the end of the month after more than 30 years working for US asset manager Franklin Templeton.

Share tips, comment and bids

  • The Times (Tempus share tips): Next’s shares are unlikely to return to their peak any time soon. But with the stock still down by more than a third since that peak, they are appealing.
  • The Daily Telegraph (Questor share tips): Next is in the “I wish we had bought more” camp.
  • Financial Times: Saudi Arabia has issued a series of legal instructions to prepare its state energy giant Saudi Aramco for a planned 2018 initial public offering, which is set to be the largest ever.
  • Financial Times: Brazil’s defence minister says his government will give its “blessings” to any business “partnership or joint venture” between Embraer and US-based giant Boeing that would boost sales of the Brazilian aircraft maker’s defence equipment, but ruled out any proposal that involves a change of ownership.
  • The Guardian: The Australian surfwear seller Billabong has been acquired by the owner of its rival brand Quiksilver in a A$198 million (£115 million) deal.
  • Daily Mail: Uber founder Travis Kalanick is to sell his shares in the company for the first time in a deal which is set to net him £1 billion.
  • The Daily Telegraph (Comment): Another reckless asset bubble will destroy the capitalist system.
  • Financial Times (Comment): PwC’s failure to spot Colonial fraud spells trouble for auditors.
  • Financial Times (Lex): Marijuana companies: stocks took a hit but investors will not allow the DoJ to harsh their buzz.
  • Financial Times (Lex): Barnes & Noble: a White House blockbuster will not be enough for the bookseller.
  • Financial Times (Lex): Getlink: a hard Brexit would be detrimental, but the French group sees a silver lining.
  • Financial Times (Lex): Indian insurers: insurance groups are poised to benefit from growing market share.

1 comment so far. Why not have your say?

Roger Savage

Jan 06, 2018 at 12:58

New car "sales" have suffered a massive decline in the last 10 years. Conversely, new car *rentals* have been booming as people rent a car they could never afford to buy to impress their neighbours.

Bottom line - a fraction of cars registered are "sales" and its misleading for the media to report them as such. Still, that's their main specialism!

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