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Thursday Papers: Delayed oil projects total nears $400bn

And Anheuser-Busch InBev has pulled in more than $110 billion of demand for an upsized $46 billion bond deal.

 
Thursday Papers: Delayed oil projects total nears $400bn

Top stories

  • Financial Times: Energy groups have shelved nearly $400 billion of spending on new oil and gas projects since the crude price collapse, pushing back millions of barrels a day in future output from areas including the Gulf of Mexico, Africa and Kazakhstan.
  • Financial Times: Anheuser-Busch InBev has pulled in more than $110 billion of demand for an upsized $46 billion bond deal, as investors rushed to pile their cash into the relative safety of high-grade US corporate debt at the start of a turbulent new year for markets.
  • The Guardian: Home Retail Group is in advanced talks to sell its Homebase DIY and home furnishings business to Australian conglomerate Wesfarmers for £340 million opening the way for Sainsbury’s to buy Home Retail’s Argos chain.
  • Financial Times: “Bad apple” traders who jump from job to job around the City of London could have their bonuses revoked even after they move to new employment, under proposals from the Bank of England.
  • Financial Times: Shares in China’s second- and third-largest state-owned telecom companies, China Unicom and China Telecom, jumped on Wednesday on news of an alliance between them to take on market leader China Mobile.
  • The Daily Telegraph: Hedge fund manager Crispin Odey used the weakness in Sports Direct's share price following its profit warning last week to rebuild his stake in the retailer.

Business and economics

  • The Daily Telegraph: Notorious “uber bear” Albert Edwards has warned of “global deflation and recession” in his latest notes to clients, predicting that US stocks could lose almost three-quarters of their value.
  • Financial Times: General Motors underlined the financial boost from booming US car sales as it raised earnings projections for 2016 nearly 5%, extended its share buyback programme and raised its quarterly dividend.
  • Financial Times: Volkswagen has promised to “regain the trust” of its British customers but will not pay any compensation to the 1.2 million motorists in the UK affected by its attempts to rig diesel emissions tests.
  • Financial Times: General Electric has announced plans to shed 6,500 jobs in Europe as it integrates the energy units of Alstom that it bought last year - potentially setting itself up for clashes with several governments and unions.
  • The Daily Telegraph: Crisis in UK steel may continue for years, says analyst in comprehensive note highlighting China's massive over-capacity.
  • Daily Express: Germany could be facing a huge financial crisis which would have devastating implications for Britain as a lethal storm of economic problems brews in the European financial powerhouse.
  • Financial Times: Provident Financial grew the number of its credit card customers by almost 10% in 2015, even as the subprime lender shrank its doorstep lending book.
  • The Guardian: Government initiatives to help first-time buyers such as the extension of help to buy and the new starter homes scheme are fuelling optimism at Barratt Developments, Britain’s biggest housebuilder, and its smaller rival Galliford Try.
  • Financial Times: Fibre broadband provider Gigaclear has secured a €25 million loan to help almost treble the size of a network that will reach rural parts of Britain with some of the fastest internet speeds available.
  • The Independent: Canada’s GMP Securities is shutting its UK business as the natural resources focused stockbroker struggles to cope with the oil and mining downturns.
  • Daily Mail: Britain's biggest sportswear retailer Sports Direct said it bought small stakes in two American firms, taking its strategy of buying shares in potential partners stateside; it now holds 11.5% of Iconix Brand Group and 2.3% of retailer Dick's Sporting Goods.
  • Financial Times: Ted Baker navigated weak demand from Chinese shoppers and a mild UK winter to post cheerful results for Christmas trading on the back of strong online growth.
  • Daily Mail: Star fund manager Neil Woodford is poised to raise more money for his Patient Capital Trust to plough into start-up firms.
  • The Daily Telegraph: Lloyds Banking Group tumbled towards the bottom of the FTSE 100 after the investment bank downgraded its rating for a second time in just five months.
  • Daily Mail: Activist investor Crystal Amber has issued another scathing attack on Pinewood’ s management – chairman Lord Grade and chief executive Ivan Dunleavy.
  • Daily Mail: Martin Morgan, the boss of the Daily Mail and General Trust, which owns the Daily Mail, Mail on Sunday and Mail Online, will retire this year after seven years at the helm, it was announced yesterday.
  • Financial Times: Activision Blizzard has hired the Hollywood producer behind movies including Quentin Tarantino’s latest, The Hateful Eight, to bolster its efforts to turn video games such as Skylanders and Call of Duty into films and television series.
  • The Guardian: The rapid spread of the internet and mobile phones around the globe has failed to deliver the expected boost to jobs and growth, the World Bank has revealed in a report that highlights a growing digital divide between rich and poor.
  • The Daily Telegraph: The boss of Fastjet is to step down following four years at the controls of the fledgling Africa-focused budget airline and less than a month after the loss-making carrier warned for a second time that it would miss forecasts.
  • The Daily Telegraph: John Menzies, the aviation services and print distribution company, is on the hunt for a new chief executive after Jeremy Stafford quit.

Share tips, comment and bids

  • The Daily Telegraph: Financial trader and spread better CMC Markets is offering clients a chance to buy a stake in the business when it lists in London in February.
  • Financial Times: Retail chain Hotel Lotte could raise up to $5 billion this year in South Korea’s biggest public offering, as parent group Lotte responds to pressure for more transparent ownership of family-dominated chaebol conglomerates.
  • Financial Times: Qualcomm and Japan’s TDK are forming a $3 billion joint venture intended to capture the growing market for wireless components used in mobile devices, cars and drones.
  • Financial Times: Italian banks Banco Popolare and Banca Popolare di Milano are in advanced talks to merge, raising the prospect that a consolidation of Italy’s mutual bank sector urged by regulators for 20 years may finally take place.
  • Financial Times: Premier Oil has agreed to buy all of the North Sea oil and gasfields owned by Eon, the German utility, in a deal worth $120 million, which industry insiders hope could spur other acquisitions.
  • The Guardian: Crisp maker Kettle Chips is hoping to take a bite out of the European popcorn market by buying a 26% stake in Metcalfe’s Skinny for an unknown sum.
  • The Daily Telegraph: The mining services group Fenner issues another profit warning and the shares hold little attraction.
  • The Daily Telegraph (Comment): Britain's Brexit tantrum grates in a brittle world but the die is cast.
  • Financial Times (Lex): General Motors: shares have not responded to its strong operating performance.
  • Financial Times (Lex): Accounting rules: it changes nothing real to reform how operating leases are measured, but it is still important.
  • Financial Times (Lex): MetLife: insurers are breaking themselves up to escape tighter regulation.
  • Financial Times (Lex): Chinese airlines: carriers are not benefiting from cheap oil.
  • Financial Times (Lex): Sodexo: French outsourcer needs to be more consistent.

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Investment Trust Watch: my Scottish tip for 2017

by Gavin Lumsden on Dec 09, 2016 at 16:10

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