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Tuesday Papers: Johnson $20bn Tyco deal revives tax storm

And Opec pleads for Russian and rival producers to smash oil speculators.

Tuesday Papers: Johnson $20bn Tyco deal revives tax storm

Top stories

  • Financial Times: Johnson Controls revived a vexed political debate about tax-cutting “inversion” deals on Monday, agreeing a $20 billion combination with Tyco International which would move the US manufacturer’s domicile to Ireland.
  • The Daily Telegraph: The Opec oil cartel has issued its strongest plea to date for a pact with Russia and rival producers to cut crude output and halt the collapse in prices, warning that the deepening investment slump is storing up serious trouble for the future.
  • The Guardian: MPs have launched an inquiry into the UK’s tax system after the government was accused of allowing Google to pay too little in a £130 million deal.
  • The Daily Telegraph: Fresh evidence of how the steel crisis is intensifying has come from Spain, with Arcelor Mittal mothballing a plant in Sestao.
  • Financial Times: McDonald’s showed signs that it is reviving its US business, reporting a second consecutive quarter of rising same-store sales in its home market, thanks in part to the introduction of all-day breakfasts.

Business and economics

  • Daily Mail: Tesco is set to be hit with £500 million of fines as bosses face being named and shamed today over an accounting scandal that has rocked the supermarket.
  • Daily Mail: Russia’s shattered economy has suffered its worst year since the financial crisis as the collapsing oil price and painful sanctions take their toll.
  • The Independent: Canada Pension Plan Investment Board (CPPIB), one of the world’s biggest investors, has built up a £47 million bet against Sainsbury’s in the wake of its shock bid for Homebase and Argos owner Home Retail Group.
  • The Guardian: A UK vote to leave the EU would trigger a snap recession, prompt a fall in share prices and house prices and knock as much as 2% off GDP, according to analysts at the investment bank Credit Suisse.
  • Financial Times: Investment in Canada’s oil and gas industry is forecast to fall again this year as companies continue to respond to the fall in prices by cutting back on drilling and developing new facilities.
  • Daily Mail: Kingfisher has unveiled a new five-year plan for growth but investors appeared less than impressed, despite proposals for a big cash return, as its blue chip shares remained firmly in the red in afternoon trading.
  • Daily Mail: GlaxoSmithKline has kicked off the search for a chief executive to succeed embattled Sir Andrew Witty.
  • Financial Times: A US beef industry already squeezed by plunging prices has become aggravated by gyrations on the Chicago Mercantile Exchange due to high-speed trading firms that have marched into futures markets.
  • The Independent: The oil explorer JKX, which faces an attempt to topple its management this week, banned two of its biggest shareholders from voting yesterday after accusing them of providing “false or materially incorrect” information.
  • Financial Times: Earnings from Halliburton, the US oilfield services group, on Monday highlighted the wide variation in the impact of the oil price slump on industry activity around the world.
  • Financial Times: Anglo American’s platinum unit is to register at least R12.1 billion ($735 million) of losses as the dire state of world commodities markets forces companies to make swingeing writedowns on the value of their assets.
  • The Daily Telegraph: This has been the worst start to a year for stock market flotations since 2009 in the US and Europe, according to figures from Dealogic, with plunging equities prices bringing share-sale debuts grinding to a halt.
  • Daily Mail: Tata Steel has begun the process of identifying which jobs are set to go at its Port Talbot plant in South Wales.
  • The Guardian: Imagination Technologies, the chip designer which is one of Apple’s suppliers, has confirmed reports it could sell its Pure digital radio business.
  • Financial Times: The Guardian will cut costs by 20%, and could make some of its journalism available only to paying members, after a sharp fall in print advertising hit the newspaper’s financial performance.
  • Financial Times: iROKOtv, the mobile entertainment group dubbed the Netflix of Africa, has secured $19 million from investors including France’s Canal Plus to produce original content and expand across the continent.
  • Financial Times: Fever-Tree, the producer of upmarket tonic waters, said that revenues in the year to 31 December had risen 71% to roughly £59.2 million, putting full-year profits “comfortably ahead” of forecasts and lifting its shares 9%.
  • Financial Times: Edward Bramson’s activist campaign at Electra, the listed British private equity investor, has advanced another step after the group announced the first review of its approach to investments in nearly a decade.
  • Financial Times: A Seoul court has fined Deutsche Bank’s South Korean operation $1.3 million and sentenced an employee to five years in prison, finding that the bank illegally profited from deliberately triggering a 2010 stock market plunge.
  • The Daily Telegraph: Now is not the time for an increase in interest rates, a leading Bank of England official will say, as she admits that many of the forecasting models used by policymakers have “not been working very well”.
  • The Daily Telegraph: Regulators are considering whether to allow two Iranian banks in London to resume operations after years of sanctions.

Share tips, comment and bids

  • The Daily Telegraph (Questor share tip): Sell Petra Diamonds as outlook toughens.
  • The Daily Telegraph (Questor share tip): Fever-Tree shares soar on tonic demand.
  • Daily Mail: Sky has made a multi-million pound investment in an US-based company Data-Xu which specialises in analysing information about customers and target them with their own adverts.
  • The Guardian: Sainsbury’s largest investor, the Qatar Investment Authority, has indicated that it might be willing to support a £1 billion-plus bid for Home Retail Group at a “modest” increase to the 130p or so cash and shares offer rejected by the Argos owner in November.
  • Financial Times: French telecoms billionaire Xavier Niel is exploring a move into the fiercely competitive British mobile market on the back of the proposed acquisition of O2 by rival Three.
  • Financial Times: Two Russian investors have bought the motor yacht builder Fairline out of administration for about £4.5 million in a deal that will keep production in the UK.
  • Financial Times (Comment): Leveraged ETFs too simple for their own good.
  • Financial Times (Lex): Telefónica Deutschland: the Spanish-owned company was in the vanguard of consolidation but shareholders have not benefited.
  • Financial Times (Lex): Corporate tax: it may not add up for Alphabet, but Qualcomm could benefit from moving its domicile.
  • Financial Times (Lex): Kingfisher: the DIY group’s strategy makes sense - if you think the market can grow faster.
  • Financial Times (Lex): Johnson Controls/Tyco: Tyco’s merger-unwinding efforts end with a merger.
  • Financial Times (Lex): China: shares in Hong Kong-listed state-owned enterprises are cheap for a reason.

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IFS says taxes need to hit historic highs to save NHS

by Dylan Lobo on May 24, 2018 at 07:56

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