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Wednesday Papers: Vodafone boss Vittorio Colao to stand down

And US threatens sanctions against European Union after trade body rules Boeing was harmed due to Airbus aid.

 
Wednesday Papers: Vodafone boss Vittorio Colao to stand down

Top stories

  • Financial Times: Vodafone chief executive Vittorio Colao is stepping down in October after a decade at the helm; Colao, who made Vodafone one of the world’s largest telecommunications groups, will be replaced by Nick Read, chief financial officer.
  • The Daily Telegraph: World Trade Organisation has ruled in favour of Boeing saying European Union had provided illegal subsidies to Airbus, paving way for the US to impose billions of dollars worth of retaliatory sanctions against the economic bloc.
  • The Times: A House of Commons inquiry has called for a formal investigation on the directors of failed Carillion for overseeing a “rotten corporate culture” in a damning 101-page report into the collapse of the public services contractor.
  • Financial Times: Emerging market currencies saw renewed selloff on Tuesday on the signs of robust US economy and concerns over weak growth figures and mounting debts in countries like Argentina, South Africa and Brazil.
  • The Daily Telegraph: Bank of England Deputy Governor Ben Broadbent compared the current slowdown in growth and wages to a lull at the end of the 19th century, when the height of the steam era was over but the age of electricity was yet to begin.
  • Financial Times: TSB rejected an offer of help from its former owner Lloyds Banking Group at the beginning of an IT failure that left hundreds of thousands of customers locked out of their bank accounts.

Business and economics

  • The Daily Telegraph: Hargreaves Lansdown added 60,000 new clients and £3.3 billion worth of new business to its books in the year to 30 April as it lured in angry Barclays' customers impacted by the banking giant's botched switchover last summer.
  • The Guardian: EasyJet, which made a rare operating profit during the traditionally loss-making autumn and winter months, is planning to expand its holiday business.
  • The Daily Telegraph: Thomson Reuters is moving its $300 billion-a-day foreign exchange derivatives trading business from London to Dublin, to be able to sell services into the European Union after Brexit.
  • The Times: Premier Foods, the maker of Mr Kipling cakes and Ambrosia custard, revealed that its statutory annual pre-tax profit had soared by nearly 75% to £20.9 million on revenue that rose from £790.4 million to £819.2 million as its turnaround finally starts to gain ground.
  • The Guardian: Sales at Arcadia Group, which owns fashion brands including Topshop, Topman and Dorothy Perkins, dropped below £2 billion during 2017 when a surge in online transactions hit trade in its shops.
  • Financial Times: Shares in the French telecommunications group Iliad closed down almost 20% on Tuesday, after reporting disappointing first-quarter earnings a day after unveiling a management shake-up aimed at rebooting the business.
  • Financial Times: ThyssenKrupp shares fell 6% on Tuesday after as the German company did not lift its full-year guidance despite upbeat earnings disappointing investors.
  • The Daily Telegraph: A private members club, The Arts Club, is expanding its presence outside London by opening a 23,000 square foot members club in Dubai next year, and another site in Los Angeles the following year.
  • Daily Mail: The German discounters Lidl and Aldi may be forced to reveal precise details of sales at individual stores, company structures and the amount of tax paid in UK as part of competition watchdog's investigation into Sainsbury's merger with Asda.
  • The Daily Telegraph: Clydesdale and Yorkshire Banking Group posted a pre-tax loss of £95 million for the six months to March, compared to a £46 million profit the previous year while pursuing a £1.6 billion takeover of rival lender Virgin Money.
  • Daily Mail: Bookie William Hill has claimed that government crackdown on fixed-odd betting machines will make the company a target for a foreign takeover and place 20,000 jobs at risk.
  • Financial Times: Air France-KLM has put in place an interim leadership team led by Frédéric Gagey, group chief financial officer, following the shock resignation of the airline’s previous chief over a pay dispute with staff earlier this month.
  • The Times: Tim Cook, the chief executive of Apple, has urged US President Donald Trump to reconsider tariffs on Chinese products worth $150 billion.
  • Financial Times: Russian cyber security company Kaspersky Lab is set to open a new data centre in Switzerland to allay fears that its antivirus software can be used as an intelligence-gathering tool by the Kremlin.

Share tips, comment and bids

  • The Times (Tempus share tips): BUY Taylor Wimpey; HOLD ITE Group.
  • The Daily Telegraph (Questor share tips): HOLD Capital & Counties Properties; BUY ITV.
  • The Daily Telegraph: DCC is targeting the US and Europe for further acquisitions after a record year of spending as it moved into new markets.
  • Financial Times: Geely is seeking a valuation of more than $30 billion to proceed with an initial public offering of the Swedish carmaker Volvo.
  • Financial Times: Portugal’s largest utility company Energias de Portugal has rejected a €9 billion takeover offer by China Three Gorges.
  • Financial Times: Japan Post Bank is to launch a $1.5 billion in-house hedge fund, as the bank moves from being a passive investor in externally managed funds to one that can actively hold, and potentially short-sell, individual stocks.
  • The Guardian (Comments): Entire system failed Carillion, not just directors at the top.
  • The Times (Comment): Stronger pay growth is welcome, but don’t let it be too strong.

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