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Wednesday Papers: Tata Steel to sell off entire British business

And Volkswagen faces $15 billion hit over US green advertisement campaign.

 
Wednesday Papers: Tata Steel to sell off entire British business

Top stories

  • The Guardian: Tata Steel is set to pull out of all its UK operations, including Port Talbot, in a move that could put thousands of jobs at risk.
  • Financial Times: Volkswagen faces billions of dollars in potential new penalties after the top US consumer watchdog hit the carmaker with a lawsuit over its emissions cheating scandal.
  • Financial Times: The Qatari investor that owns the second-biggest stake in Deutsche Bank plans to issue a rare public statement supporting Paul Achleitner as the chairman of Germany’s biggest bank, despite a sharp fall in the value of its shares.
  • Financial Times: Senior engineers at French utility EDF have called for at least a two year delay at the controversial Hinkley Point nuclear project in the UK and recommended a redesign of the reactor technology.
  • The Daily Telegraph: Janet Yellen, the head of US Federal Reserve, has vowed to move with extreme care before tightening monetary policy in the face of lingering global deflation and trouble in China.
  • Financial Times: Global sales of construction equipment such as bulldozers, diggers and dump trucks are expected to expand in 2017 after five years of shrinkage, according to Off-Highway Research, a consulting firm.

Business and economics

  • The Times: Law enforcement officials in the US said yesterday that they were exploring a joint investigation into whether the country’s big energy companies had lied about the risks of climate change to protect their profits.
  • The Times: The General Administration of Quality Supervision, Inspection and Quarantine in Beijing has ordered the recall of the vehicles by the Italian sports car maker Maserati, which is owned by Fiat Chrysler, over what it calls “a defect in design”.
  • Daily Mail: New commodity sell-off sparked by falling oil prices have hurt the mining giants.
  • The Times: Straightline Aviation will become the first in the world to purchase and run a fleet of hybrid airships built by Lockheed Martin, the American aviation group.
  • The Guardian: AG Barr, the Scottish soft drinks maker best known for Irn-Bru, has reiterated its annoyance at George Osborne’s sugar tax but says it expects little financial impact because it will change its recipes to adapt to the measure.
  • Financial Times: Aviva’s top management were awarded bumper payouts last year as the UK insurer sealed the £5.6 billion acquisition of rival Friends Life.
  • The Guardian: The family owned bookseller Foyles returned to profit last year as its new London flagship proved to be a beacon for book lovers.
  • Financial Times: The president of Alstom’s UK operations, Terence Stuart Watson, has become the seventh person to be charged in a long-running bribery investigation into the French rail and power company.
  • Daily Mail: A Goldman Sachs banker has quit in a scandal engulfing Malaysia’s prime minister; as chairman of the bank’s operations in South East Asia, Tim Leissner was involved in the sale of US dollar bonds for a Malaysian state fund intended to boost the country’s economy.
  • Financial Times: The chief executive of Amaya, which runs the world’s largest online poker business, PokerStars, has stepped down as he battles charges of insider trading and prepares a bid to take the company private.
  • The Times: The big Gulf airlines have diverted traffic to Birmingham airport to avoid congestion and a lack of take-off and landing slots at Heathrow and Gatwick.
  • The Guardian: The music and audio streaming firm SoundCloud is launching its long-planned subscription service, but for now the $9.99-a-month service will only be available in the US.
  • Financial Times: India has given its official blessing — with caveats — to the foreign investment that has flooded into its booming ecommerce sector, after years of bitter disputes over whether foreign-owned online shopping sites were legal in the absence of clear regulations.
  • The Daily Telegraph: Qatari investors now own around £1 billion worth of property in London’s Mayfair, as the proportion of overseas buyers in the area hits 65%.
  • Financial Times: The London Stock Exchange Group says its rivals have to adapt to rapidly changing global financial markets or face losing customers, and the shifting sands have driven its proposed $20 billion all-share combination with Deutsche Börse.
  • Financial Times: César Alierta, executive chairman of Telefónica and one of the most powerful men in Spanish business, has announced his resignation after 16 years at the helm.
  • Financial Times: The French government says the pay package of PSA Peugeot Citroën’s chief executive is damaging to the carmaker and that it will vote against it.
  • Financial Times: A state-owned steelmaker in China’s northeastern Liaoning province has defaulted on a Rmb852 million ($131 million) corporate debt days after its chairman was said to have committed suicide.
  • The Daily Telegraph: Uber’s founder has said the world’s most highly-valued technology start-up has no chance of going public in the coming months, playing down talk of an IPO that many expect to be as big as Facebook’s $100 billion (£70 billion) float.

Share tips, comment and bids

  • The Times (Tempus share tips): HOLD De La Rue; BUY Cerillion; SELL Monitise.
  • Financial Times: Foxconn and Sharp will both hold board meetings in an attempt to close a chaotic takeover deal after tough talks to cut the $6 billion acquisition price by around $2 billion.
  • Financial Times: UniCredit, Italy’s largest bank by assets, is in talks with the government in Rome about seeking support for a €2 billion capital raising at mutual bank Popolare di Vicenza, a deal seen as a crucial test of investor confidence in Italy’s lenders, according to five people with direct knowledge of the matter.
  • Financial Times: US private equity firm KKR plans to sell SMCP to China’s Shandong Ruyi in a deal that values the French fashion group at €1.3 billion including debt, according to people familiar with the matter.
  • Financial Times: A $100 million Nasdaq flotation has given a fresh impetus to efforts by Hutchison China MediTech to produce the first drug to originate from China for decades.
  • Daily Mail: Offers for US internet giant Yahoo must be in by April 11, giving potential bidders just two weeks to submit their preliminary offer proposals.
  • The Times: Legend Holdings, one of China’s largest investment companies is set to buy a stake in Pension Insurance Corporation, a specialist insurer of pension schemes for some of Britain’s biggest businesses.
  • The Times: Forterra, Britain’s second biggest brickmaker plans to float in London next month in anticipation of a surge in housebuilding to reduce a chronic shortage of homes.
  • The Guardian: Sports Direct has upped its stake in Findel to nearly 30%, in the latest stage of its battle to wrest control of the online specialist.
  • The Guardian (Comment): Buy-to-let off the hook in Bank of England report.
  • Financial Times (Lex): Novo Banco: Portuguese bank has healthy buffer against bad loans but remains a risky bet.
  • Financial Times (Lex): Premier Foods/McCormick: he target’s enterprise value depends in large measure on how one calculates its liabilities.
  • Financial Times (Lex): Music streaming: the likes of Deezer and Spotify are fishing in a surprisingly small pool.
  • Financial Times (Lex): Brazilian equities: the country’s rally gets the market recovery to first base.
  • Financial Times (Lex): PICC P&C: for investors, car insurers are a steadier bet than buyers of fancy hotels.

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Investment Trust Insider: the Trojan Horse issue!

by Gavin Lumsden on Aug 26, 2016 at 15:30

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