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Sunday Papers: Tesco’s secret plot for cut-price chain

And hidden report reveals ministers exaggerated UK fracking boom.

Sunday Papers: Tesco’s secret plot for cut-price chain

Top stories

  • The Sunday Times: Britain’s biggest supermarket Tesco is understood to be developing a separate brand that would match the German insurgents on price, and offer a far more limited range of products than the average Tesco store.
  • The Sunday Telegraph: A hidden report for Britain’s most senior ministers has revealed that the promise of a UK shale gas boom has been dramatically exaggerated by government and fracking companies.
  • The Sunday Times: Besieged engineering giant GKN is expected to offer a mammoth cash return to shareholders this week in an effort to repel a hostile takeover approach; the document is expected to include a pledge to sell GKN’s powder metallurgy business, which could be worth more than £2 billion.
  • The Observer: Stock markets are heading for a wild ride this year as central bankers strap on their bullet-proof vests and test investors’ willingness to accept higher interest rates.

Business and economics

  • The Sunday Times: Businesses spent as much as £7.7 billion less on new factories and equipment in the year after the EU referendum because of Brexit uncertainty, according to analysis by the Bank of England.
  • The Sunday Times: Tim Buckley, the new chief executive of Vanguard, said investors would have to accept lower returns in the future than they have enjoyed in the past.
  • The Sunday Telegraph: Anger at BT’s failure to commit to a large-scale broadband network upgrade has triggered a new discussion of whether it should be forced to spin off its network subsidiary Openreach.
  • The Sunday Telegraph: BT is attempting to squeeze higher fees from rival Virgin Media for its sport channels against the backdrop of this weekend's multibillion-pound Premier League rights auction.
  • The Observer: Purdue, the maker of the powerful painkiller OxyContin, said it would stop marketing opioid drugs to doctors, bowing to a key demand of lawsuits that blame the company for helping trigger the current US drug abuse epidemic.
  • The Sunday Times: Convatec, the maker of wound dressings, is poised to ramp up cost-cutting as it seeks to reassure investors over revenues and margins.
  • The Sunday Telegraph: French chef Raymond Blanc’s restaurant venture Brasserie Bar has bemoaned a business rates hike for adding to an “increasingly hostile” trading environment as it posted a near £3.2 million pre-tax loss.
  • The Sunday Telegraph: Toys R Us has appealed to investors for a £120 million lifeline as crucial payment deadlines loom at the end of the month.
  • The Sunday Times: Ryanair chief executive Michael O’Leary has warned that he will force British shareholders to sell their stock in the budget airline if there is a hard Brexit.
  • The Sunday Times: The boss of cancer drugs developer Immunocore has stepped down, raising questions over the future direction of one of Britain’s hottest young biotechs.
  • The Sunday Telegraph: The chief executive of Britain’s leading gemstone company Gemfields has disclosed his firm faces 29 allegations of human rights abuses at their Mozambique mine.
  • The Sunday Times: Daniel Harrison, who is the son of a senior City financier, has been accused of being the mastermind of a multimillion-pound international cryptocurrency fraud, which netted him $30 million and saw one investor commit suicide.
  • The Sunday Times: A North Sea oil services company Proserv, which is based in Aberdeen and has contracts with oil giants including Statoil, is considering chapter 11 bankruptcy as it struggles under hefty debts.

Share tips, comment and bids

  • The Sunday Telegraph (Questor share tip): Management changes at Renishaw mean this is one to avoid for now.
  • The Sunday Times: Deliveroo, the food delivery service that has been at the forefront of the boom in the gig economy, is considering plans for a bumper stock market float.
  • The Mail on Sunday: H/2 Capital Partners, the hedge fund taking over a care homes chain that looks after 17,000 vulnerable residents, has thrown it a £70 million lifeline while restructuring talks continue.
  • The Sunday Times: BHP Billiton is coming under pressure from some of its biggest investors to consider tearing up its dual London and Sydney listing.
  • The Observer (Comment): Its needle is pointing to the danger zone. But can we trust the fear index?
  • The Sunday Telegraph (Comment): Germany's grand coalition is built on sand.

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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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