Citywire for Financial Professionals

View the article online at http://citywire.co.uk/money/article/a1060037

Tuesday Papers: ConvaTec loses a fifth of its value on sales warning

And Credit Suisse is targeted for three-way break-up by activist hedge fund RBR exploiting impatience with turnround progress.

 
Tuesday Papers: ConvaTec loses a fifth of its value on sales warning

Top stories

  • Financial Times: ConvaTec, the medical products maker, lost more than a fifth of its value on Monday after it halved forecasts for full-year organic sales growth, blaming supply issues and lower than anticipated revenues from new products.
  • Financial Times: A Swiss hedge fund RBR Capital Advisors is poised to launch an activist campaign to break up Credit Suisse, tapping into investor impatience with the progress of the bank’s turnround under chief executive Tidjane Thiam.
  • The Times: The City watchdog is investigating American investment bank Jefferies over claims that senior managers improperly interfered with the work of analysts in its research department.
  • The Daily Telegraph: European aerospace giant Airbus has agreed to buy a majority stake in Bombardier's C Series aircraft programme, just weeks after it emerged the US was looking to impose heavy tariffs on the jets.
  • The Daily Telegraph: Britain's finance industry has warned that the value of a post-Brexit transition deal is "disappearing by the day," repeating its call for action as Theresa May prepares for a crucial meeting with European leaders.
  • Financial Times: Tom Barrack’s Colony Capital has thrown a lifeline to The Weinstein Company that could lead to the sale of the troubled film group, which faces an uncertain future following allegations of serial sexual harassment by its co-founder, Harvey Weinstein.

Business and economics

  • The Times: Oil prices jumped close to their highest level since 2015 yesterday, as political tensions in Iraq triggered a brief shutdown of output from the country’s Kurdish north.
  • Financial Times: The palladium price broke through the $1,000 mark on Monday for the first time since 2001, as a backlash against diesel cars in Europe buoys demand for a metal used in petrol-based vehicles.
  • Financial Times: European manufacturers say their supply chains face irrevocable damage without a “meaningful” Brexit transition deal in place by the end of the year.
  • The Daily Telegraph: Dutch transport giant Abellio has placed a bumper order for more than 100 trains as part of a hi-tech upgrade of the West Midlands train network to Bombardier UK.
  • Daily Mail: Netflix shares hit a record high last night as it added 5.3 million subscribers globally.
  • Daily Mail: Lidl has unveiled plans for a new warehouse in Peterborough as part of a £1.45 billion investment in the UK.
  • The Guardian: The security protocol used to protect the vast majority of wifi connections has been broken, potentially exposing wireless internet traffic to malicious eavesdroppers and attacks, according to the researcher who discovered the weakness.
  • The Guardian: Hundreds of thousands of Mercedes-Benz cars in the UK are being recalled over airbag concerns; the models affected include the A, B, C, and E-Class, and CLA, GLA, and GLC, built between November 2011 and July 2017.
  • Financial Times: US department store chain Nordstrom has scrapped plans to take itself private this year, just weeks after reports that banks were wary of providing financing for the deal.
  • The Daily Telegraph: Big four accountancy firm EY has been fined £2.75 million for a series of mistakes in the auditing of a tech company’s accounts five years ago.
  • The Daily Telegraph: Interserve, the troubled construction and support services group, has said it is in “constructive and ongoing discussions with its lenders” in the wake of a profit warning which wiped two-thirds of its market value.
  • Financial Times: Michael Spencer’s Nex Group has appointed the architect of its recent cost-cutting programme to lead the division responsible for a recent profit warning after it announced the latest in a string of senior departures.

Share tips, comment and bids

  • The Times (Tempus share tips): HOLD Pacific Horizon Investment Trust; AVOID Low & Bonar; BUY Acal.
  • The Times: Chinese state oil companies have written to Saudi Aramco offering to buy up to 5% of its shares and bypass its planned stock market float.
  • Daily Mail: Airline EasyJet yesterday submitted a bid for some of Alitalia’s assets.
  • The Daily Telegraph: Insurance giant Legal & General has agreed to buy pet insurer Buddies with the hope of cashing in on Britain's love for cats and dogs.
  • The Daily Telegraph: Fidelity International, a major shareholder in Millennium & Copthorne hotels, has accused the firm’s independent directors of settling for a knock-down price for the business after an offer to take it private emerged last week.
  • The Daily Telegraph: South African lender FirstRand has said it could go hostile in its attempt to take over UK challenger bank Aldermore.
  • Financial Times: Rio Tinto, the Anglo-Australian mining group, is in advanced talks to sell its aluminium assets in Australia and New Zealand to GFG Alliance, the investment company run by steel tycoon Sanjeev Gupta.
  • Financial Times (Lex): Uber: encouraging numbers for the meal delivery service but competition will only intensify.
  • Financial Times (Lex): Kurdistan oil: the disputed area has failed to live up to its billing as a producer of crude.
  • Financial Times (Lex): Siemens Gamesa: losing the Spanish company’s chief after the merger in April has proved to be a mistake.
  • Financial Times (Lex): Vincom/Vietnam: interest in the country may grow if minority investors are treated well.
  • Financial Times (Lex): Aldermore/FirstRand: bid price for the UK challenger bank looks fair.

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.

Sorry, this link is not
quite ready yet