Citywire for Financial Professionals

View the article online at http://citywire.co.uk/money/article/a1102930

Tuesday Papers: Data woes knock nearly $37bn off Facebook market value

And New York activist investor has secretly mounted a £1.9 billion raid on Barclays.

 
Tuesday Papers: Data woes knock nearly $37bn off Facebook market value

Top stories

  • Financial Times: Facebook saw its shares plunge 6.8% yesterday – the most in four years - after EU lawmakers joined hands with UK and US counterparts to investigate how Cambridge Analytica, a consultancy that worked on President Donald Trump’s election campaign, gained access to the personal data of 50 million Facebook users; the backlash wiped $36.7 billion off the market value of the world’s largest social network.
  • Daily Mail: New Yorker Edward Bramson, who has a notorious reputation as a corporate brawler, has secretly mounted a £1.9 billion raid on Barclays; his firm, Sherborne Investors, has accumulated more than 5% stake in the UK bank, triggering fears of open corporate warfare.
  • The Times: Columbia Threadneedle, one of the biggest institutional shareholders in GKN with 3.4% stake, has announced that it would vote against the £8 billion hostile takeover of GKN by Melrose.
  • Financial Times: In another setback following a series of scandals, Uber had to suspend all testing of self-driving cars after a fatal collision involving an Uber vehicle that was operating in autonomous mode killed a woman in Tempe, Arizona.
  • Daily Mail: Micro Focus saw nearly £4 billion of its value being wiped off yesterday after Britain’s biggest technology company warned of a slump in sales and disclosed its boss had quit; shares nosedived 46.4% to 1011p.
  • Financial Times: In a major breakthrough, Britain has secured a 21-month Brexit extension, which will provide companies a breather until 31 December 2020 to make preparations.

Business and economics

  • The Times: Westfield London has now became the largest shopping centre in Europe - overtaking Aviapark in Moscow and the Westgate shopping city in Zagreb, Croatia - after it opened a 740,000 sq ft extension worth £600 million; John Lewis, the department store operator, is the anchor tenant of the extension.
  • Financial Times: UPS said on Monday that it will increase the number of electric trucks it has in operation in central London from 52 to 170 over the next few years; a large number of vehicles can now be recharged simultaneously with the development of an electric vehicle-charging “smart grid”.
  • The Guardian: Tween jewelry and ear piercing retailer Claire’s has filed for bankruptcy on Monday saying it was looking to restructure $1.9 billion in debts it accumulated after being acquired by Apollo Global Management in 2007.
  • Daily Mail: Carpetright and Mothercare yesterday saw millions of pounds being wiped off their share prices; Carpetright is reportedly considering closing dozens of stores to stay in business; while Mothercare’s shares slumped 14.2% to 14.68p, Carpetright’s dived 21.1% to 44p.
  • Daily Express: Siemens, one of the largest employers in Germany, is setting up a £27 million 3D printing factory in Worcester; the unit is scheduled to open in September this year and will create 55 jobs.
  • Daily Mail: Cake maker Finsbury Food Group has registered a 2.5% increase in the sales of its birthday cakes to £144.8 million in the last six months of 2017, thanks to emoji-themed birthday cakes.
  • Daily Mail: Royal Bank of Scotland is planning to launch an online bank, similar to HSBC’s First Direct, with its eye fixed on youth market.
  • The Times: Share price of Aim-listed Accrol Group plunged another 63% yesterday after the struggling toilet paper maker said that it now expected net debt to rise to about £34 million and breach a banking covenant.
  • Financial Times: Vale is planning to announce a new dividend policy based on a more sustainable cash flow generation rather than profits or debt; the world’s largest iron ore exporter is aggressively cutting debt, setting the stage for steadier cash returns for shareholders in coming years.
  • The Guardian: The North Sea registered drilling of fewer than 100 wells last year, the lowest since 1973, reflecting the decline in investment after the 2014 collapse in oil prices.
  • Financial Times: Global agricultural merchant Archer Daniels Midland is planning to reshuffle its operating divisions into four new ones, the second such restructuring in three years; the Chicago-based company is struggling with falling profit margins amid ample grain supplies.
  • The Times: Diana Hunter, the chief executive of Conviviality Retail, has quit following a highly damaging week in which the owner of Bargain Booze and Wine Rack announced two profit warnings and an unexpected £30 million tax bill.
  • Financial Times: South Korean automakers Hyundai Motors and affiliate Kia Motors are being probed by a US regulator after airbags fitted in their vehicles failed to deploy in frontal collisions leading to four deaths.
  • The Daily Telegraph: Gambling watchdog has given some relief to investors in gambling companies by recommending much less harsh restrictions on controversial betting machine stakes than expected.
  • Financial Times: Foreign minister of South Korea Kang Kyung-wha has warned that global row, triggered by US tariffs on steel imports, might be “unhelpful” for President Donald Trump to secure a nuclear deal with North Korea.
  • Financial Times: Russia’s top oil company Rosneft has sought to allay investor concerns by saying that Venezuela is repaying its $6.5 billion loan to the company on schedule despite fears over the country’s finances.

Share tips, comment and bids

  • The Times (Tempus share tips): AVOID Ladbrokes Coral, William Hill, Paddy Power Betfair; BUY Finsbury Food Group.
  • Daily Mail: Hammerson, the British owner of the Bullring shopping centre in Birmingham and Brent Cross in north London, has received an audacious £4.9 billion bid from French rival Klepierre; Hammerson rejected the bid but its shares surged 24% amid signs Klepierre will continue to pursue a deal.
  • The Times: Saudi Aramco, Saudi Arabia’s state-owned oil company, is likely to opt for a purely domestic share sale, dashing hopes for its London listing; this is slated to be the world's largest flotation in history.
  • The Times: French tyre maker is set to acquire the engineering firm Fenner in a £1.2 billion deal; Fenner’s shareholders will receive 610p a share, a premium of more than 30% to the closing price on Friday.
  • Financial Times: Arm Holdings, the UK chip designer bought for £24.3 billion by SoftBank in July 2016, could be relisted; the Saudi-backed $93 billion Vision Fund SoftBank launched last year is set to acquire a 25% stake in Arm.
  • The Daily Telegraph: Amazon is likely to bid for the Toys R Us stores, just days after the toy retailer declared plans to close its US operations.
  • The Times: Pentland, the British company behind Speedo, Mitre and Canterbury, has taken over Endura, the cycling clothing brand.
  • The Daily Telegraph: Gaming software entrepreneur Richard Hadida has bailed Oyster Yachts, the Southampton-based builder of luxury sailing yachts, out of administration; Oyster ceased its operations last month.
  • The Guardian (Comment): It is time now for national governments around the world to start issuing their debt in a new form, linked to their countries’ resources.

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

More about this:

Archive

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...

Bookies slump as £2 stake limit on terminals looms

by Daniel Grote on Apr 24, 2018 at 15:19

Sorry, this link is not
quite ready yet