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Tuesday Papers: Carillion chief quits after profit warning

And court dismisses legal claim to block BAE Systems from exporting arms to Saudi Arabia.

Tuesday Papers: Carillion chief quits after profit warning

Top stories

  • Financial Times: The chief executive of Carillion has stepped down as the outsourcing group issued a profit warning and announced a strategic review, triggering a 39% plunge in its share price.
  • The Daily Telegraph: Shares in defence giant BAE Systems have risen after the High Court threw out a case trying to block arms sales by British companies to Saudi Arabia, which is one of FTSE 100-listed BAE’s biggest customers, and if the legal action was successful it could have put a huge hole in the company’s sales.
  • The Times: Britain’s councils are making multi-billion-pound bets on commercial property as they try to replace revenue lost through government cuts.
  • Financial Times: The UK drugs industry is going to court in an attempt to stop the country’s taxpayer-funded National Health Service from imposing new limits on the price it will pay for medicines.
  • Financial Times: France is considering introducing tax breaks for the wealthy as soon as next year to attract more entrepreneurs and investors, prime minister Edouard Philippe said in an interview.
  • Financial Times: European judges could continue to have sway over Britain for a “limited time” after Brexit, the British government has conceded, in a development that could pave the way for a softer exit with the UK retaining closer ties to the EU.

Business and economics

  • Financial Times: Facebook-owned Oculus is cutting the price of its Rift virtual reality headset for the second time this year, as VR continues to struggle to gain traction among mainstream consumers.
  • Financial Times: A group of hedge funds will help Matalan replace its existing £477 million of bonds, in a move that promises a windfall for the financiers as it would render worthless existing credit insurance contracts they have sold to other investors.
  • The Daily Telegraph: Britain’s huge financial services sector enjoyed robust profits and rising employment last quarter even though optimism about the future darkened with Brexit looming on the horizon, according to a new poll.
  • The Daily Telegraph: The Bank of England has fired a shot across the bows of lenders by warning it has detected a rise in risky creative accounting, in a move that could spur worries firms are returning to practices that sparked the financial crisis.
  • Daily Mail: Foreign companies have exploited the fall in the pound to mount takeovers of UK rivals worth £122 billion since the Brexit vote.
  • The Times: Legal & General expects to deliver the first homes from its gigantic prefabricated housebuilding factory in the first half of next year, it said yesterday as it revealed a video of its first prototype.
  • Daily Mail: Contract wins with Lidl and Aldi helped tissue roll maker Accrol toast rising sales and profits.
  • The Times: The advertising watchdog is considering barring BT, Sky and Virgin from claiming to offer a “fibre broadband” service when only part of the cable is fibre.
  • Daily Mail: TalkTalk Telecom Group's chief financial officer Iain Torrens will step down this year, continuing the reshaping of the British company's top team under founder and executive chairman Charles Dunstone.
  • Financial Times: McKinsey has been drawn into the scandal around South Africa’s powerful Gupta business family after revealing that a partner who allegedly misrepresented the consultancy in a deal with a Gupta-linked investment company would temporarily stand down.
  • The Times: The threat of further strike action at BMW’s British plants has been lifted after workers accepted a revised offer on their pensions.

Share tips, comment and bids

  • The Times (Tempus share tips): BUY GCP Infrastructure Investments; SELL Banco Santander; BUY Unite Group.
  • Financial Times: China's Cosco Shipping has agreed to buy Orient Overseas International of Hong Kong in an all-cash acquisition, the latest in a wave of M&A in container shipping, as the battered industry navigates its way to sustainable profitability.
  • The Times: The £2.1 billion takeover of Atkins, the engineering consultancy and project manager whose triumphs have included the 2012 London Olympic Games site, was completed last Tuesday as the shares delisted; the group, which boasts 18,000 employees, is owned by SNC-Lavalin, a Canadian company.
  • The Daily Telegraph (Comment): With all options on the table, crumbling Carillion must now consider sale or break-up.
  • The Guardian (Comment): How healthy is the global financial system?
  • Financial Times (Lex): Great Plains/ Westar: Utility function.
  • Financial Times (Lex): Best Buy/Amazon: the online juggernaut is now muscling in on gadget advice.
  • Financial Times (Lex): Stada: domination agreements are a recipe for complex takeover bids.
  • Financial Times (Lex): Carillion: support service group’s chief executive quits in wake of profit warning.
  • Financial Times (Lex): Norsk Hydro: Sapa only makes sense for the Norwegian group with more cost savings.
  • Financial Times (Lex): Cosco/OOIL: state financing has enabled a pivotal transaction.

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FTSE 100 hands back gains as Bank turns hawkish

by Michelle McGagh on Jun 21, 2018 at 13:09

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