Citywire for Financial Professionals

View the article online at

Tuesday Papers: Brexit panic knocks pound to seven-year low

And Opec has failed to stop US shale revolution, admits energy watchdog.

Tuesday Papers: Brexit panic knocks pound to seven-year low

Top stories

  • The Guardian: The pound tumbled to a seven-year low and the UK was warned its credit rating was at risk on Monday as the effect of Boris Johnson’s backing for the Brexit campaign was felt in financial markets.
  • The Daily Telegraph: The current crash in oil prices is sowing the seeds of a powerful rebound and a potential supply crunch by the end of the decade, but the prize may go to the US shale industry rather Opec, the world's energy watchdog has predicted.
  • Financial Times: Sysco, the world’s largest catering supplier, has reached a $3.1 billion deal including debt to acquire UK-based food distributor Brakes Group after abandoning a takeover of its biggest domestic rival US Foods last year.
  • The Guardian: The mining company BHP Billiton has reported a half-year net loss of $5.67 billion (£4 billion) and warned that the current period of weak commodity prices is likely to continue.
  • Financial Times: HSBC is being investigated by US authorities over its hiring of people linked to Asian governments, adding to the bank’s litigation worries, which helped to drag it to a fourth-quarter loss.
  • Financial Times: Chinese company Goldwind has become the world’s biggest wind turbine maker, putting an end to more than 30 years of European and US dominance.

Business and economics

  • The Independent: Scandal-ridden HSBC reported a small rise in full-year profits of just 1% yesterday after posting an unexpected loss in the fourth quarter.
  • Financial Times: Bovis Homes Group has reported record profits for 2015 as it looks to step up construction amid a favourable climate for UK housebuilding.
  • Financial Times: Fitbit shares tumbled after the maker of wearable fitness devices revealed a disappointing first-quarter outlook, despite beating forecasts with 8.2 million trackers sold over the 2015 holidays.
  • Financial Times: AngloGold Ashanti reduced its net debt by 30% last year and improved cash generation, highlighting how cost-cutting measures by the world’s largest gold miners have helped them respond to a long decline in prices.
  • Daily Mail: Petra pounded as diamond prices fall 9% due to slowing demand from China and excess supply clogging up the system.
  • Financial Times: Macquarie has raised $3.1 billion for its first Asia-wide infrastructure fund aimed at meeting demand for roads, energy plants and water treatment facilities as a growing share of the continent’s population moves to cities.
  • Financial Times: The top lobby groups for banks in the US have blasted proposals to make them build bigger buffers against losses, saying that the “excessive” requirements could restrict the flow of credit to the world’s biggest economy.
  • Financial Times: Apple is pushing for the legal row over unblocking the San Bernardino shooter’s iPhone to be taken up by a Washington DC committee instead of being handled through the courts.
  • Financial Times: Vodafone chief executive Vittorio Colao has made one last appeal for the British telecoms regulator to either split BT from its fixed line network or far more greatly regulate the group ahead of a key review of the UK market.
  • Financial Times: Trinity Mirror, the newspaper publisher, will next week embark on a bold attempt to coax digital readers back to the printed page with its launch of The New Day, the UK’s first new standalone national newspaper in three decades, defies the downturn that has gripped the industry in recent years.
  • Financial Times: Bank of Ireland is planning to resume dividend payments from next year for the first time in nearly a decade in the latest sign that the country’s financial crisis is beginning to recede.
  • Financial Times: Foreign governments are suspected of launching cyber attacks on BAE Systems roughly twice a week, according to the UK defence company, which warned that internet crime was becoming increasingly sophisticated and professional.
  • The Guardian: Regency Mines has jumped up 77% after the company bought into the Horse Hill Development, the so-called Gatwick Gusher.
  • Financial Times: Primark, the most visited clothes retailer in the UK, said that its entry into the US since September was going well, with “encouraging” trading at the two stores opened so far in the Boston area.
  • Daily Mail: Horse drug firm Dechra Pharmaceuticals gallops ahead with an 8.1% rise in first-half revenue to £86.3 million.

Share tips, comment and bids

  • The Daily Telegraph (Questor share tip): Buy IHG on cash returns.
  • Financial Times: Switzerland’s private banks have emerged from a wave of deals with US justice authorities over American clients’ tax affairs to start a dash for consolidation, with a SFr1.33 billion ($1.33 billion) tie up between two midsized lenders.
  • Financial Times: J Sainsbury has been given three additional weeks to come up with a firm offer for Home Retail Group, whose shares rose by 13% as investors responded to a rival approach from South Africa-based retailer Steinhoff.
  • Financial Times: Providence Equity Partners, the media-focused private equity investor, has taken a minority stake in Topgolf Entertainment, a Texas-based operator of “gamified” driving ranges.
  • The Guardian: Qantas shareholders are set for another windfall after the airline launched a $500 million buyback along with a record first-half profit.
  • The Guardian: First Oil Expro, the North Sea’s largest privately owned oil explorer, has gone into administration amid persistently low oil prices.
  • Financial Times (Comment): Brexit is the last thing City banks need.
  • Financial Times (Lex): Coca-Cola HBC: CCH has plenty of cash flow. For what?
  • Link: Bank of Ireland: green party.
  • Financial Times (Lex): Sainsbury’s: the supermarket could afford to pay more for Home Retail but it should be careful.
  • Financial Times (Lex): Sysco/Brake: dealmaking proves irresistible for a company that has benefited from organic growth.
  • Financial Times (Lex): IPOs: out with the new.

1 comment so far. Why not have your say?


Feb 23, 2016 at 09:38

Once again some newspapers are trying to whip up custom for their newsprint with coverage thats one can say is inflated to the extreme Boris like many others in the tory party have aligned them selves to the out vote .a panic vote is a vote that is glassine only visable when the bulb is turned on.

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

A comprehensive approach to investing in Europe

Making the most out of Europe’s potential means seeing things differently. Learn more about how BlackRock’s focused approach to investing in Europe helps investors unlock the continent’s vast potential.

Watch Now

The Citywire Guide to Investment Trusts

In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add to your safe senders list so we don't get junked.

Sorry, this link is not
quite ready yet