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Saturday Papers: UK businesses unprepared for Brexit

And Bank of International Settlements has warned that oil market spiral threatens to prick global debt bubble.

Saturday Papers: UK businesses unprepared for Brexit

Top stories

  • Financial Times: The boards of many of Britain’s largest listed companies have made no contingency plans for a possible Brexit amid polls showing rising public support for leaving the European Union.
  • The Daily Telegraph: The global oil industry is caught in a self-feeding downward spiral as falling prices cause producers to boost output even further in a scramble to service $3 trillion of dollar debt, the world’s top watchdog has warned.
  • Financial Times: ArcelorMittal plans to raise $3 billion through a rights issue to bolster its balance sheet after losses rose sevenfold in 2015 in the latest sign of upheaval in the global steel industry.
  • Financial Times: Filaret Galchev, the Russian businessman with extensive construction interests, has become the latest tycoon to suffer the effect of collapsing commodity prices and financial market volatility.
  • The Guardian: HSBC has been fined $470 million (£325 million) for “abusive mortgage practices” in relation to the 2007-2009 housing crisis in which millions of people lost their homes.
  • The Guardian: Global stock markets fell after the news that US wages picked up and unemployment fell to an eight-year low raised the prospect of another interest rate rise in the world’s biggest economy this year.
  • Financial Times: Three of Mayfair’s most famous restaurants are hoping to cash in on soaring rents in the exclusive London postcode by quietly seeking to sell their leases as estate agents warn that the W1 culinary bubble may be about to pop.

Business and economics

  • Financial Times: Volkswagen has postponed its full-year results and annual shareholder meeting after admitting it faces too much uncertainty over the financial impact of the diesel emissions scandal.
  • The Daily Telegraph: In its final results ahead of its landmark merger with Shell, BG Group has reported a pre-tax profit of $2.98 billion, compared with a $2.3 billion loss the previous year.
  • Daily Mail: More than £40 billion has been wiped off the value of the UK’s biggest banks since the start of the year in a blow to millions of investors and pension savers.
  • Financial Times: Shares in BNP Paribas jumped as the lender said it would shrink the riskiest parts of its investment bank and slash costs in the face of tougher regulation.
  • Financial Times: Shares in CMC Markets fell below its initial public offering price, after the spread-betting company, which was founded by City of London tycoon Peter Cruddas, floated in London on Friday.
  • Financial Times: Toyota suffered its first fall in quarterly operating profit since early 2014 as rising labour and research costs weighed on the world’s biggest car group.
  • The Guardian: LinkedIn Corp’s shares plunged as much as 43% on Friday, wiping out nearly $11 billion of market value, after the social network for professionals shocked Wall Street with a revenue forecast that fell far short of expectations.
  • Daily Mail: Goldman Sachs was accused of ‘hysterical scaremongering’ last night after it warned the pound would collapse in value if Britain votes to leave the EU.
  • Financial Times: Britain is preparing for record numbers of visitors for China’s lunar New Year but there are signs the year of the monkey will not bring the prosperity UK businesses are hoping for.
  • The Independent: Five of the “challenger banks” ministers hope will rehabilitate Britain’s finance industry after the 2008 crash are run by former executives of RBS who were serving under Fred Goodwin in the run-up to its collapse.
  • Financial Times: Profits at Intesa Sanpaolo dropped sharply in the fourth quarter because of its contribution to the rescue of four small lenders but its provisions on bad loans fell to the lowest level since 2010.
  • Daily Mail: More cosy links emerged between the Government and tech giants yesterday after an Amazon executive was promised a top job at Whitehall.
  • The Independent: IKEA has lost a trademark battle in Indonesia after the country’s highest court ruled the name was owned by a local company, according to court documents released this week.
  • The Independent: Britain’s pig farmers are feeling the pressure as yearly income for pig-only farms forecast to fall by 46% this year.
  • The Guardian: The oil industry spent more than $10 million lobbying state lawmakers in a massive push to kill California climate change legislation last year, new disclosures have revealed.

Share tips, comment and bids

  • The Daily Telegraph (Questor share tip): AstraZeneca faces Crestor crunch in year ahead; Hold
  • Financial Times: Manchester United struck a partnership with 20th Century Fox to advertise Fox’s big films during Premier League games and in post-match interview backdrops for the rest of the season.
  • Financial Times: Virgin Media has called on Brussels’ antitrust regulator to allow the controversial £10.5 billion takeover of O2 by CK Hutchison following proposals to open its network for rivals to use.
  • Financial Times: Just Eat has agreed a €125 million deal to acquire a number of international businesses from Rocket Internet as the pair, Europe’s largest online takeaways groups by sales, try to consolidate their lead positions.
  • The Daily Telegraph: Ingenious, the film investor that backed Avatar and Dawn Of The Planet Of The Apes, has sold its asset management business to private equity as the group continues a lengthy battle over its tax affairs.
  • The Daily Telegraph: Grainger, Britain's biggest listed residential landlord, has sold a £94 million loss-making German property portfolio as it continues to shift its focus towards the UK private rented sector.
  • Financial Times (Lex): M&A lawsuits: plaintiffs’ lawyers and CEOs should never be too cosy.
  • Financial Times (Lex): ArcelorMittal: industrial group wants to believe the worst has passed.
  • Financial Times (Lex): Art values: effects of QE do not seem to have spread to Picassos.
  • Financial Times (Lex): Hon Hai/Sharp: sale of the struggling group would be a win for Japan.

3 comments so far. Why not have your say?

Jo Public

Feb 06, 2016 at 08:43

Unprepared for Brexit? How difficult can it be? All they need is a stock of P45s.

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Bill Esslemont

Feb 06, 2016 at 10:43

Pure scaremongering from Goldman Sachs - it's none of their damn business if we (as I hope) decide to leave the corrupt, undemocratic and extremely expensive EU. It costs us far more than we get back and even the part of our massive contribution they are good enough to return to us has to be spent as they see fit. BETTER OFF OUT!

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Cynical Investor2

Feb 06, 2016 at 11:21

If Companies do not have " a Post EU Strategy" in place, Stockholders should be very concerned.

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Barnett eyes revival and 'refines' unquoted portfolio

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