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Wednesday Papers: City chiefs call for 3-year delay to Brexit

And FTSE 100 closes at record high after longest-ever winning streak on the back of the cheap pound.

 
Wednesday Papers: City chiefs call for 3-year delay to Brexit

Top stories

  • Financial Times: City of London bosses have called for a three-year delay to Brexit to let companies adjust to new trading arrangements between the UK and EU and to avoid the risk of systemic crisis in the multitrillion-dollar derivatives market.
  • The Times: Britain’s leading stock market index broke a host of records yesterday as the new year rally powered ahead on the back of the cheap pound and Donald Trump’s forthcoming presidency.
  • The Daily Telegraph: Shop prices are rising across the UK's supermarkets once again for the first time since 2014, according to fresh industry figures by Kantar Worldpanel.
  • The Guardian: Volkswagen group confirmed on Tuesday that it has negotiated a $4.3 billion (£3.53 billion) draft settlement with US regulators to resolve its diesel emissions troubles, alongside plans to plead guilty to criminal misconduct charges.
  • Financial Times: Spending by US oil and gas companies is expected to surge this year as the industry responds quickly to the upturn in crude prices in recent months.
  • Financial Times: Wm Morrison lifted its profit guidance after reporting its strongest sales growth in seven years over the Christmas period, buoyed by a new range of premium products and improved technology for restocking its shelves.
  • Financial Times: Jeremy Corbyn has stepped back from a proposal for a cap on wages only seven hours after announcing it.

Business and economics

  • Financial Times: Chinese investors spent four times as much on acquisitions in the EU last year as European companies did in China, according to new figures that will inflame an already heated debate about growing imbalances between the world’s two largest markets.
  • The Guardian: Volkswagen on Tuesday said it had sold 10.3 million cars worldwide last year, a new record for the German auto giant, despite grappling with a massive emissions cheating scandal.
  • The Guardian: A tentative pickup in the global economy this year is at risk from the political uncertainty unleashed by Brexit and the arrival of Donald Trump in the White House, the World Bank has said.
  • The Times: One of Britain’s biggest housebuilders Bovis Homes offered its customers as much as £3,000 to complete on homes that were not finished in what analysts claim was a failed attempt to meet City targets before the end of the financial year.
  • The Guardian: The Post Office is to close and franchise a further 37 of its flagship crown offices, with the loss of 300 staff, and cut 127 financial specialist roles, workers have been told.
  • Financial Times: General Motors has predicted profits to increase for 2017 on the back of a “Trump bump” in the US car market and increased sales in China.
  • The Times: Shoppers spent £480 million more at supermarket tills over Christmas than the year before during a record festive trading period in which Tesco has emerged as one of the big winners.
  • The Times: Christmas cheer seems to have touched nearly all of Britain’s supermarkets, with the Co-op the latest to report healthy festive trading.
  • Daily Mail: Games Workshop has turned its fortunes around in the past few months and recorded rising sales and profits.
  • The Daily Telegraph: Boohoo has delivered fresh evidence of online retailers storming past their high street fashion rivals after beating bullish City forecasts with soaring sales.
  • Daily Mail: Majestic Wine enjoyed its 'best ever Christmas' sales last month in a much-need recovery from a surprise £4.4 million loss in November.
  • The Daily Telegraph: Vimto maker Nichols is bucking the trend of slow growth in the soft drinks market after reporting a jump in full-year sales.
  • The Daily Telegraph: Spar has warned that growth in the convenience sector is slowing despite beating the wider UK grocery market with a rise in sales.
  • Financial Times: An activist hedge fund is attempting to drum up support among fellow shareholders in Zodiac Aerospace to oppose proposals on remuneration and director appointments at the struggling French maker of aircraft interiors and safety systems that has issued nine profit warnings in two years.
  • The Times: American justice officials have charged three London-based City traders with conspiring to rig foreign exchange markets.
  • The Daily Telegraph: The insurance firm RSA has been hit with a £150,000 fine for allowing a digital copy of 60,000 customer files to be stolen from a supposedly secure room.
  • The Times: British nuclear experts are to undertake a detailed study of a Chinese reactor design after ministers decided to go ahead with plans to construct a nuclear power station on the Essex coast.
  • Financial Times: Billionaire James Packer has returned to the board of Crown Resorts as part of a management shake-up, reflecting the Australian casino operator’s retrenchment following the arrest of 18 staff by Chinese authorities.

Share tips, comment and bids

  • The Times (Tempus share tips): BUY Robert Walters; BUY H&T Group; AVOID Just Eat.
  • The Daily Telegraph: David Montgomery, former editor of the News of the World, has emerged as the potential buyer of the Express and Star newspapers, in a complicated deal with their current owner Richard Desmond that could also see Trinity Mirror take a minority stake.
  • The Times: Michael Spencer, the City financier and former Conservative party treasurer, has banked more than £200 million after selling most of his stake in the newly enlarged interdealer broking supergroup TP Icap.
  • Financial Times: Valeant Pharmaceuticals International has sold several assets for $2.1 billion as the struggling Canadian drugmaker seeks to restructure its business and pay down debt.
  • Financial Times: National Grid, which operates electricity networks in Britain and the US, is making its first move into solar power with a $100 million investment in a partnership with Sunrun, the largest independent rooftop solar company in the US.
  • Financial Times: China’s Fosun will spend up to €531 million to increase its stake in Millennium BCP to 30% as part of a €1.33 billion capital increase by Portugal’s largest listed lender.
  • The Daily Telegraph (Comment): Economists can’t tell us what the future holds. No-one can.
  • Financial Times (Lex): Valeant: on the rebound; the pharma group is emerging from a break-up with a former suitor in good shape.
  • Financial Times (Lex): Millennium BCP: cold comfort; unflattering comparisons with Italian banks may look apt but are misplaced.
  • Financial Times (Lex): Yahoo: baba shop; watch for the rump of the internet company to be undervalued.

7 comments so far. Why not have your say?

Micawber

Jan 11, 2017 at 06:48

Thanks Himanshu for adding explanatory lines to the Lex items.

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Bill Esslemont

Jan 11, 2017 at 08:52

So the city fat cats want a 3 year delay to Brexit because they don't want anything to affect their derivatives dealings. Would that be the same kind of toxic c**p based on liar mortgages and the like that caused the financial crash in 2008? The London money grubbers are truly selfish greedy people who couldn't care less about the good of the WHOLE of the UK, regaining control of our borders, our fishing grounds etc but only care about THEIR huge salaries and bonuses. I hope Mrs May tells them to get stuffed.

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Truth Searcher 2

Jan 11, 2017 at 09:41

Well said Bill.

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Alan Tonks

Jan 11, 2017 at 09:58

Bill Esslemont

I agree with you apart from the last bit,” I hope Mrs. May tells them to get stuffed.” Mrs. May will do absolutely nothing, she is good at that.

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cc

Jan 11, 2017 at 10:51

Outrageous that they are suggesting that the government ignore the wishes of the majority of the British public.

I just wish that Mrs May would stop dragging her feet. Since EU leaders have said that they will not give her anything meaningful in the negotiations it seems pointless to delay - just leave now, stop contributions and perhaps slap an import tax on imported EU luxury goods such as BMWs and VWs?

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PaulSh

Jan 11, 2017 at 11:46

Brilliant idea, cc, let's have a trade war with the EU, our largest trading partner.

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cc

Jan 11, 2017 at 11:54

It was a tongue in cheek suggestion... I'm not for a moment suggesting that we have a trade war, just that we are not a helpless pawn in the negotiations and should make this clear.

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Pound falls as poll shows Conservative lead shrinking

by Daniel Grote on May 26, 2017 at 10:46

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