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Tuesday Papers: Global bond sell-off rattles markets

And Noble Group shareholders face wipeout in sweeping refinancing.

 
Tuesday Papers: Global bond sell-off rattles markets

Top stories

  • Financial Times: The global bond market sell-off deepened on Monday, lifting the 10-year US Treasury yield above 2.7% for the first time in nearly four years and sparking concerns that the roaring stock market rally could be vulnerable to a reversal.
  • The Daily Telegraph: Noble Group, which once dominated trade in Asia of oil, gas and metals, has announced a sweeping restructuring plan that will all but wipe out the holdings of its existing shareholders.
  • The Times: One of Britain’s most senior accountants, four of his boardroom colleagues at Carillion and the audit firm KPMG will be the subject of the Financial Reporting Council’s largest ever investigation.
  • Financial Times: Consumer group JAB Holding has agreed to pay $18.7 billion in cash to acquire Dr Pepper Snapple and combine it with its Keurig Green Mountain coffee business in the largest acquisition of a soft drinks company.
  • Financial Times: British MPs found to have engaged in sexual harassment or bullying could lose their seats under a new independent complaints procedure under consideration for staff working at Westminster.

Business and economics

  • The Guardian: Brussels has warned that it stands ready to retaliate and potentially open up a transatlantic trade war if the US delivers on apparent threats to restrict European imports.
  • The Times: London and cities in the south of England are becoming a “buyer’s market” as the gap between asking prices and agreed sales widens, a leading property analyst has claimed.
  • Financial Times: Shares of defence contractor Lockheed Martin were up over 3% in premarket trading after the company announced adjusted earnings per share well above Wall Street expectations for the fourth quarter of last year.
  • The Daily Telegraph: Apple has reportedly slashed production orders for its iPhone X despite the £999 handset’s initial success, sending shares in the world’s biggest company down on Monday.
  • The Times: The fishing tackle retailer Fishing Republic has raised £1.3 million via a share placing to fund a restructuring, having issued a profit warning late last year.
  • Daily Mail: Shareholders Shah Capital, Barington Capital Group and NuOrion Partners, who together hold 3.5% of the cosmetics group Avon, were ‘extremely disappointed’ with the board’s performance.
  • The Times: Petra Diamonds slashed its production forecasts yesterday and warned that a stronger South African rand would dent profits.
  • The Guardian: Volkswagen, the world’s biggest carmaker, is under fire globally from politicians and environmentalists following revelations it helped to fund experiments in which monkeys and humans breathed in car fumes for hours at a time.
  • Financial Times: Dalian Wanda, China’s largest commercial property group, has said it plans to pivot away from its core property development activities, as part of a $5.4 billion deal with some of the country’s biggest tech firms designed to ease pressure on its cash flow.
  • The Times: Union leaders have accused UK Mail of trying to force through “draconian” new contracts that they claim would cut delivery drivers’ pay by £2,000.
  • The Guardian: The new easyJet chief executive, Johan Lundgren, has voluntarily taken a £34,000 pay cut to match the salary of his predecessor, Carolyn McCall.
  • The Daily Telegraph: The US Justice Department and the country’s derivatives regulator said they had filed civil and criminal charges against three European banks, UBS, Deutsche Bank and HSBC, which paid $46.6 million (£33 million) to settle the cases, and eight individuals for alleged manipulation in US futures and commodities market.
  • The Daily Telegraph: The UK is winning the race to clean up the energy system by taking a lead on rolling out renewable energy projects and cutting coal-fired power faster than its EU peers.
  • The Daily Telegraph: Deutsche Bank has been forced to defend plans to pay staff bigger bonuses despite racking up a third consecutive net loss for 2017.

Share tips, comment and bids

  • Daily Mail (Traders tips): BUY Croda; SELL CMC Markets.
  • The Daily Telegraph (Questor share tips): BUY Nichols; TAKE UP RIGHTS from Cineworld; HOLD Burford bonds.
  • The Times (Tempus share tips): HOLD Aberforth Smaller Companies Trust; BUY Countryside Properties.
  • Daily Mail: Japanese tech giant Softbank looks set to list its mobile phone business in both London and Tokyo; the firmis understood to have selected bankers at Citi and Mizuho to lead on the £12.7 billion flotation.
  • Daily Mail: Superdry’s founder has cashed in £17.8 million of shares in what is believed to be a bill for a divorce that has already cost him £52 million.
  • Financial Times: France’s Sanofi will pay €3.9 billion to acquire Belgian biotech group Ablynx in a second blockbuster deal in a week that underscores the pressure on pharma groups to replenish their drug pipelines.
  • Daily Mail: Relx Group is buying a California-based digital identity checker Threatmetrix for £580 million.
  • The Times: Juice Corporation, the company behind the Joe Bloggs and Elizabeth Emanuel fashion brands, has gone into administration and is selling its assets, including its intellectual property rights and £7.5 million of stock.
  • Financial Times: Tesla is in talks with Chile’s largest lithium producer SQM about investing in supplies of the key battery material, as it ramps up production of its first mass-market electric car.
  • The Daily Telegraph: Entertainment One has bought the remaining portion of the Mark Gordon Company, the independent TV and film studio behind Grey's Anatomy and Murder on the Orient Express, as part of its push to produce more of its own features.
  • Financial Times: Anglo American has completed its exit from the domestic coal market in South Africa with the sale of its 585 million tonne New Largo project to a consortium led by Seriti Holdings for $71 million.
  • The Daily Telegraph (Comment): Carillion failure proves that cheap is great up to a point – until it’s not.
  • Financial Times (Comment): XEM heist raises questions for Japan’s retail investors.
  • Financial Times (Comment): Standard Chartered looks to regain step in growth markets.

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