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Thursday Papers: Fed raises rates for second time in 2017

And oil price falls as US fracking stems Opec’s efforts to cut global glut.

 
Thursday Papers: Fed raises rates for second time in 2017

Top stories

  • Financial Times: The Federal Reserve has defied a string of weak inflation figures as it lifted short-term rates by another quarter point and set out detailed plans for paring back the size of its balance sheet later this year.
  • The Times: Oil prices fell 3.5% after US petrol inventories jumped and there was a lower-than-expected drop in crude stockpiles.
  • The Daily Telegraph: Accountancy firms have been warned of a gap in quality between their audits of big businesses and those of smaller firms, which are increasingly flawed, according to the industry watchdog.
  • Financial Times: The life sciences division of Google’s parent company has made its biggest push into drug development by investing in a new fund that will buy stakes in European biotech groups, underscoring its growing interest in the pharmaceuticals industry.
  • Financial Times: At least 12 people have died in an enormous fire at a west London tower block where residents had repeatedly complained about fire safety.
  • Financial Times: The iconic Old War Office building in Whitehall is to be transformed into a luxury hotel by Europe’s largest hotel group, Raffles Hotels & Resorts.

Business and economics

  • Financial Times: Thames Water is being investigated by regulator Ofwat for its “unacceptable failure” to control water leakages, with 180 litres a day leaking from every property the company supplies.
  • The Times: Inditex, the world’s largest clothing retailer, which is behind Zara, Massimo Dutti and Pull & Bear, said that its net sales jumped by 14% to €5.6 billion in the three months to 30 April.
  • Financial Times: The weak pound is expected to give a big boost to first-half profits at British American Tobacco, which said it had started the year “very well” despite expected declines in sales volumes across the tobacco industry.
  • The Daily Telegraph: The steady decline in high street sales at WH Smith showed no sign of slowing in the spring as like-for-like sales fell 4%.
  • The Daily Telegraph: Luxury brand Mulberry has fashioned a jump in sales and profits for the last year as shoppers were won over by new creative designer Johnny Coca's handbags.
  • The Daily Telegraph: Investment bank Rothschild reported double digit revenue growth in its recently-ended financial year, and said "very few changes" will need to be made to its operations as a result of Brexit.
  • The Times: Bellway, one of the country’s biggest housebuilders, has become the latest to report strong demand for new homes despite recent surveys suggesting a slowdown in the market.
  • The Daily Telegraph: Rent-to-own electricals and homeware retailer BrightHouse posted a plunge in annual profits and warned the decline continued at the start of this year as it reels from the after-effects of a Financial Conduct Authority investigation.
  • The Daily Telegraph: Camelot, the operator of the National Lottery, has launched an in-depth review of its business after sales plunged by nearly 9%.
  • Financial Times: Hedge fund Elliott Advisors has called on BHP Billiton to overhaul its board as the mining company meets in Chile to decide on a new chairman.
  • The Guardian: Netflix and Amazon are set to overtake the cinema multiplex after a report predicted that revenues from streaming film and TV shows in the UK will exceed box office takings by 2020.
  • ‌Financial Times: Grosvenor has announced plans for a £500 million investment in a new housing development in Bermondsey, as the company – which owns swathes of central London’s most exclusive districts – looks to take advantage of the rising trend for long-term renting among young Londoners.
  • The Daily Telegraph: Yahoo laid off dozens of staff in the UK on Wednesday, the day after Verizon completed its $4.5 billion (£3.5 billion) takeover of the former internet giant.
  • The Times: Acacia Mining’s majority owner has entered crisis talks with the Tanzanian government to resolve a dispute that the London-listed gold miner says threatens its existence.
  • Financial Times: A UK subsidiary of Slater and Gordon, the troubled, Australia-listed legal firm, has served a claim against UK-based Watchstone Group over the ill-fated 2015 acquisition of its professional services arm.
  • The Daily Telegraph: Nick Hugh has been named as the new chief executive officer of Telegraph Media Group, taking over from Murdoch MacLennan who has run the publisher of The Daily Telegraph and The Sunday Telegraph since 2004.
  • Financial Times: Colin Fan, the former co-head of investment banking at Deutsche Bank, is set to become the latest alumnus of the German financial institution to join Japan’s SoftBank, which is recruiting executives to help manage its new $93 billion tech fund.

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Pound jumps, banks top FTSE as August rate rise eyed

by Daniel Grote on Jun 29, 2017 at 09:51

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