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Wednesday Papers: Banking watchdog warns of ‘cliff-edge’ Brexit

And Murdochs face more delays and scrutiny of Fox News in £11.7 billion Sky takeover.

Wednesday Papers: Banking watchdog warns of ‘cliff-edge’ Brexit

Top stories

  • Financial Times: The UK’s most senior supervisor of banks and insurers - Sam Woods, a deputy governor of the Bank of England - has given his starkest warning to date over the risks the financial system faces from a cliff-edge Brexit without a transition period.
  • The Sunday Telegraph: The Government has erected a new obstacle to the Murdoch family's pursuit of full control of Sky, after asking the media regulator to look again at 21st Century Fox's record as a broadcaster.
  • Financial Times: Guy Hands, the British private equity investor behind the disastrous takeover of music label EMI, is raising his first buyout fund since 2007, a US regulatory filing shows.
  • Financial Times: British American Tobacco tapped investors for $17.25 billion on Tuesday in the second largest corporate bond deal of the year, as low borrowing costs and a fierce appetite for debt help persuade companies to lever up.
  • Financial Times: Provisional results from Kenya’s presidential election indicating that Uhuru Kenyatta was set to win re-election were rejected as “fake” and “illegal” by his main challenger Raila Odinga.
  • The Times: Virgin Media has declared that its £3 billion plan to roll out high-speed broadband is “back on track” despite appearing on course to fall short of previous ambitious targets.

Business and economics

  • Daily Mail: Oil companies are pulling out of crisis-stricken Venezuela as Repsol, Chevron and Total are reported to have withdrawn and Norway’s Statoil ASA has also withdrawn foreign staff.
  • The Times: Aluminium was pushed above $2,000 a tonne for the first time in three years yesterday after the Chinese authorities cut production as part of an environmental crackdown.
  • Financial Times: German exports fell in June, in the biggest drop for almost two years, stirring debate about whether the eurozone’s recovery could be hindered by the region’s increasingly strong currency.
  • The Daily Telegraph: Retired households have tripled their incomes in the past 40 years, substantially narrowing the gap in earnings with working-age households.
  • Financial Times: New Look, the fast-fashion retailer, has warned that “challenging market conditions” will continue into next year as it reported a slump in quarterly profits on the back of tough trading in the UK.
  • Daily Mail: Insurance and investment giant Standard Life has revealed a 6% climb in overall pre-tax operating profits to £362 million for the six months to 30 June.
  • Financial Times: Valeant posted quarterly earnings that exceeded Wall Street expectations, handing the drugmaker a reprieve as it tries to tackle its $29 billion of debts and recover from an accounting scandal that threatened to topple the company.
  • The Daily Telegraph: Industry is calling for clarity from the Government over the nascent industrial strategy or risk one of the key planks of Conservative policy failing.
  • Financial Times: Pets at Home has lifted sales growth ahead of expectations after the retailer ditched short-term promotions in favour of consistently lower prices, driving up revenues in its first quarter.
  • The Daily Telegraph: Walt Disney will no longer provide its films to Netflix from 2019, and instead will launch its own standalone services for films and sports streaming.
  • The Daily Telegraph: FTSE 100 group InterContinental Hotels has seen a slowdown in its key US market partly offset by better performance in Europe and China.
  • The Daily Telegraph: Rotork, the engineering business that dumped its chief executive two weeks ago because of lacklustre performance, has reported flat sales at the half year mark.
  • The Times: Australia’s largest lender, Commonwealth Bank, has slashed executive bonuses and directors’ pay after a regulator accused it of breaching money-laundering laws.
  • The Daily Telegraph: The boss of Morgan Sindall said the firm’s construction and infrastructure businesses have begun to improve, despite being “more selective” about the project it takes on.
  • Daily Mail: House builder Bellway has said the residential property market remains 'robust' with a healthy increase in sales recorded, despite uncertain economic conditions.
  • Financial Times: Liberty Global says it remains on track for a spin-off of its Latin American arm known as LiLAC by the end of the year, as it readies the division for an expected industry shake-up in the region.
  • The Times: McDonald’s will nearly double its number of outlets in China by 2022 as part of its strategic partnership with Citic, the state-backed conglomerate, and Carlyle Group.

Share tips, comment and bids

  • The Daily Telegraph (Questor share tips): BUY British American Tobacco.
  • The Times (Tempus share tips): AVOID Intercontinental Hotels; BUY Rotork; AVOID Pets at Home.
  • Financial Times: TP ICAP said it was looking at further acquisitions this year after the world’s largest interdealer broker said it had cut 175 jobs in the first steps towards integrating the ICAP broking business it bought for £1.3 billion.
  • Financial Times: Worldpay has been granted a last-minute extension for Vantiv to make a firm takeover offer, in a move that pushes back both payment processing companies’ earnings results until later this week.
  • Financial Times (Lex): Worldpay/Vantiv: a rush to announce the deal has made its terms harder to assess.
  • Financial Times (Lex): Standard Life: merging with Aberdeen will reduce dependence on a key fund range.
  • Financial Times (Lex): Pandora: increasing marketing spend and shutting stores might fix US problems.
  • Financial Times (Lex): Lending Club: the ‘alternative’ lender has become reliant on traditional institutions.
  • Financial Times (Lex): Valeant/Teva: pharma business models have been disrupted in two short years.

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FTSE rebounds as China-US trade fears pause

by Michelle McGagh on Jun 20, 2018 at 16:44

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