Citywire for Financial Professionals

View the article online at http://citywire.co.uk/money/article/a1032407

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.

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:

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 noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Read more...

Overnight Markets: Tech shares buoy Wall Street

on Nov 21, 2017 at 03:10

Sorry, this link is not
quite ready yet