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Wednesday Papers: Drop Brexit trade plan, Hammond tells Tories

And Brussels unveils plans to grab large parts of London's €850bn-a-day euro-clearing market.

Wednesday Papers: Drop Brexit trade plan, Hammond tells Tories

Top stories

  • The Times: Philip Hammond is preparing to lead a battle within the government to soften Brexit by keeping Britain inside the EU customs union.
  • The Daily Telegraph: The City of London has warned Brussels that attempts to grab large parts of its euro clearing market will put financial stability at risk as EU bureaucrats unveiled plans to move big clearing houses inside the bloc after Brexit.
  • Financial Times: President Emmanuel Macron of France said the “the door remained open” to Britain’s staying in the EU as he met Theresa May, the UK prime minister, in Paris.
  • The Daily Telegraph: Volkswagen is facing its biggest legal challenge in Europe over the “dieselgate” scandal with a UK class action against the car maker teaming up with a similar claim in the Netherlands.
  • Financial Times: Italy’s finance minister has said a “solution” to rescue two struggling banks in the north-east Veneto region — Banca Popolare di Vicenza and Veneto Banca — is close and talks with EU authorities are “encouraging”.
  • Financial Times: Symphony, the messaging platform backed by the likes of Goldman Sachs and BlackRock, has teamed up with news and data provider Thomson Reuters in its biggest push yet to oust Bloomberg as the dominant chat network in global markets.

Business and economics

  • The Guardian: UK inflation rose to a four-year high in May as the pound’s sharp fall since the Brexit vote worked its way through the economy, intensifying the squeeze on household budgets.
  • The Guardian: Global demand for coal has fallen for the second consecutive year, according to a BP study, helped by the US and China burning less of the dirtiest fossil fuel.
  • The Times: A day after declaring that it was not bidding for Stanley Gibbons, Edi Truell’s Disruptive Capital Finance has requested that it be allowed to take part in the auction of the venerable stamp seller.
  • The Times: One of the City’s biggest investment groups, Standard Life, has strongly criticised the stock market regime that is set to allow a small London-listed company to be taken private, leaving furious minority investors lumbered with unlisted and illiquid shares.
  • The Daily Telegraph: Uber boss Travis Kalanick is to take indefinitie leave of absence after series of scandals.
  • Financial Times: Merlin Entertainments, owner of Legoland and Madame Tussauds, says its UK attractions have been “adversely affected” by recent terrorist attacks, in a sign that such incidents are starting to hurt British tourism.
  • The Daily Telegraph: Condé Nast, the publisher of Vogue and GQ, is scrapping its ambitious shopping website in favour of a deal with Farfetch, the online retail platform that is heading towards a $5 billion listing.
  • Financial Times: After 18 months of ferocious and vocal opposition to its plans, the Chinese owner of Wentworth, one of Britain’s most famous golf clubs, has come up with a solution.
  • The Times: Shares in Capita, the outsourcing group, surged by 15% yesterday after it reported good progress in its turnaround plan and signalled that it would cut debt before the end of the year by selling its registrars division, which analysts believe could raise more than £700 million.
  • Financial Times: The chief executive of housebuilder Crest Nicholson has warned that the outcome of the UK general election could hit the housing market.
  • Financial Times: Ted Baker said revenues have risen 14% since the end of January as the retailer opened stores in Los Angeles, Paris and Shanghai.
  • Financial Times: Crown Resorts, the casino group controlled by Australian billionaire James Packer, said on Tuesday that employees from its China operations had been charged with offences related to the promotion of gambling.
  • Financial Times: LafargeHolcim, the Swiss-French cement company, faces a French judicial inquiry into allegations it helped finance terrorism in Syria, a scandal that has already led to the exit of its chief executive.
  • The Times: A decision to cut interest rates or switch on money printing again after the shock election result and hung parliament would be a “cardinal mistake”, the Bank of England has been warned.
  • Financial Times: British clothing retailer N Brown is looking for a new chairman, after Andrew Higginson announced plans to step down after almost five years at the company.
  • The Daily Telegraph: Marissa Mayer is leaving Yahoo after five years as chief executive, it has finally been confirmed, after Verizon completed its $4.5 billion (£3.5 billion) takeover of the once-mighty internet giant.
  • The Daily Telegraph: Spire Healthcare has begun its search for a new permanent boss after announcing executive chairman Garry Watts has taken a step back due to ill health.

Share tips, comment and bids

  • The Times (Tempus share tips): SELL Monitise; HOLD Evgen Pharma; BUY Spire Healthcare Group.
  • The Daily Telegraph: Don’t buy Burford’s fully priced shares, go for the bonds and get a 4.7% yield.
  • Financial Times: Monitise, once a favoured UK technology stock with a valuation topping £1 billion, has been sold for just £70 million, after failing to find buyers for its latest fintech software.
  • Financial Times: A Russian-led group is on the verge of closing the biggest foreign direct investment in India: the $13 billion purchase of local conglomerate Essar’s oil-refining division.
  • Financial Times: UK regulators have warned Heineken that its planned purchase of 1,900 Punch Taverns pubs will be investigated unless it addresses competition concerns at 33 sites in Britain.
  • The Daily Telegraph: A potential bidding war could be in sight for Fabergé-owner Gemfields, after Shanghai-based conglomerate Fosun Gold approached the ruby and emerald miner a month after it pushed back against an offer from its largest shareholder.
  • Financial Times: Ayala Corporation, the Philippine group with interests stretching from real estate to banking, is hunting for acquisitions among niche European automotive technology suppliers as it expands into the car industry.
  • Financial Times (Lex): Goldman Sachs: having figured out that lending can be profitable, the bank is chasing deposits.
  • Financial Times (Lex): UK business taxes: much of the assumed wisdom around company tax rises is flawed.
  • Financial Times (Lex): Vocus/KKR: potential for improvement should be reflected in higher price.
  • Financial Times (Lex): Santander/Popular: lender will have its work cut out making the best of the match.

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Barnett eyes revival and 'refines' unquoted portfolio

by Daniel Grote on May 23, 2018 at 16:09

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