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Tuesday Papers: Treasury bank ‘slams the door’ on wealthy savers

And TSB might have to cough up to its Spanish owners £110 million a year for a botched IT upgrade.

Tuesday Papers: Treasury bank ‘slams the door’ on wealthy savers

Top stories

  • The Times: National Savings and Investments, the Treasury-backed savings bank, has reduced the limit of deposit in its most popular accounts from £1 million to £10,000 to prevent them from becoming too popular.
  • Daily Mail: TSB might have to cough up to its Spanish owners £110 million a year for a botched IT upgrade that locked 1.9 million customers out of their accounts.
  • The Guardian: Worrying reports showing the steepest fall in manufacturing output and the greatest degrees of pessimism among employers since 2012 are the clearest signs of stress in the British economy since the eurozone crisis six years ago.
  • The Times: An American law firm, which is investigating claims on behalf of WPP investors in the wake of the resignation of Sir Martin Sorrell, is preparing a class action against the company.
  • Financial Times: Home Office has turned down more than 2,300 applications from doctors and nearly 2,000 applications from IT professionals for UK work visas.

Business and economics

  • Daily Express: Francesco Filia, the chief executive at London-based Fasanara Capita, has warned that the world could be on the brink of a financial crisis as red flags and early warning signs begin to show up.
  • Daily Express: TUI’s chairman Klaus Mangold has ruled the tour operator out of the wave of mergers and acquisitions taking place in the sector given that its charter airline arm has been undergoing its own overhaul.
  • Financial Times: Citigroup’s investment bank might shed half of its 20,000 technology and operations staff in the next five years due to automation.
  • The Times: Olaplex, a California-based start-up, has secured a rare victory in Britain in a patent infringement battle with L’Oréal.
  • Daily Mail: HSBC chief executive John Flint has ruled out further branch closures after closing 117 outlets across the UK last year.
  • The Independent: Nine in 10 employers find it difficult to recruit the skilled staff they need, with Brexit set to have a “disastrous” impact on the UK’s ability to compete, a survey has found.
  • The Guardian: The price of bitcoin and other virtual currencies fell sharply after South Korean cryptocurrency exchange Coinrail was hacked over the weekend.
  • Financial Times: The price of thermal coal has surged to the highest level since 2012 due to strong Asian demand.
  • The Guardian: Ofgem could make it harder for new firms to enter the energy market, citing concerns over poor customer service and lack of financial resilience.
  • Financial Times: German officials have raided the private apartment of Audi chief Rupert Stadler as part of investigation of Volkswagen into diesel emissions.
  • The Times: Lendlease and Starwood Capital have acquired the Silvertown Partnership, which holds the development rights to the 50-acre brownfield site in London’s East End, and would kickstart the estimated £3.5 billion development.
  • The Daily Telegraph: Company directors should not be held responsible for business insolvencies if the problems which force a company into liquidation occur after it has been sold, the Institute of Directors has said.
  • Financial Times: Thousands of ABB’s jobs might be at risk if US pushes ahead with new tariffs on steel and aluminium imports, the company’s chief executive has warned.
  • The Daily Telegraph: Jaguar Land Rover is moving the production of its Discovery off-roader from Solihull plant to its giant new factory in Slovakia, risking job cuts.
  • The Times: The Financial Conduct Authority has waded into the escalating row between Invesco Perpetual and a popular investment trust.
  • Daily Mail: Poundworld called in administrators on Monday, becoming the latest retail casualty on the British high street and putting 5,100 jobs at risk.
  • Financial Times: Chinese tech group Xiaomi made a net loss of $1.1 billion in the first quarter.
  • The Guardian: KPMG has been fined more than £3 million for misconduct relating to the scandal-hit insurance software firm Quindell, which changed its name to Watchstone in 2015 amid a probe into its accounts by the Serious Fraud Office.
  • Financial Times: Standard Chartered plans to apply for virtual banking license in Hong Kong.
  • The Times: The private jet broker Air Partner has concluded a review into an accounting foul-up that resulted in a £4 million hole in its financial statements.
  • The Guardian: Malaysia’s governing coalition is set to investigate the purchase of Battersea Power Station, the biggest property deal in the UK, as part of “dubious” investments made by the previous administration.
  • The Daily Telegraph: Vodafone’s controlling stake in its African arm will be reduced as part of efforts to increase black ownership of companies in South Africa.

Share tips, comment and bids

  • The Times (Tempus share tips): BUY Cairn Energy; SELL HSBC.
  • The Times: Stryker and Boston Scientific are in talks about a $110 billion merger amid a spate of dealmaking in the healthcare industry to counter threat from online retailers such as Amazon.
  • Daily Mail: Ocado shares climbed 11.2% on Monday after it received ringing endorsements from Bernstein and Goldman Sachs.
  • Financial Times: Yellow Cake, a new investment vehicle focused on nuclear fuel uranium, has secured a strategic backer for its London listing next month.
  • The Times: BCA Marketplace, which was listed in 2014 by Clayton Dubilier & Rice, an American private equity firm, has admitted that it had received and rejected a takeover offer from Apax Partners.
  • Daily Mail: Inmarsat’s shares surged nearly 13% on the threat of a bidding war after the satellite communications company revealed it had rebuffed a takeover approach from US private equity fund Echostar.
  • Financial Times: Mars, the pet food chocolate group, is to take over AniCura, a pet care business from Nordic Capital.
  • The Daily Telegraph: Challenger stock exchange Aquis will raise £12 million through listing on the junior Aim market to bolster its war chest to take on larger rivals, such as the London Stock Exchange and Deutsche Boerse.
  • The Daily Telegraph: Unions have refused to support the mega-merger between Tata Steel Europe and Thyssenkrupp unless the companies guarantee that UK jobs and plants are protected.
  • Daily Mail (Comment): Secrecy costs WPP dear with this week's AGM having all the ingredients for a circus.
  • The Daily Telegraph (Comment): Forget Archimedes ... economic progress is about trial and error.

4 comments so far. Why not have your say?

Donald Chan

Jun 12, 2018 at 08:05

National Savings and Investments: does anyone have access to a more detailed quote as to why the government is taking this drastic step?

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Tim D

Jun 12, 2018 at 10:03

Which? has an article on it including the quote "these changes to the investment limit will allow us to manage demand in order to achieve our Net Financing target for 2018-19 while continuing to deliver positive value to taxpayers" ( )

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Donald Chan

Jun 12, 2018 at 10:50

Thanks, Tim. Do you have a view? Interesting that government now avoids guarantee for larger sums (i.e. over £85,000).

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Samual Saunders

Jun 12, 2018 at 15:20

Disappointed with Artemis High Income fund in which I invested In April and has only gone down to -2.94%. Considering moving my £40k+ to somewhere else, but not sure if I will miss out on the quarterly payment, or best to take the loss and put it towards experience and a more productive fund. Not looking for growth but even tiny lift would be satisfactory as a back-up fund. Their Strategic Bond is just -1.59 with a similar amount in it so may give that a little longer. Any suggestions?

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The Expert View: CYBG-Virgin, Cineworld & Indivior

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