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Monday Papers: GSK opens issue of spinning off consumer division

Monday Papers: GSK opens issue of spinning off consumer division

Top stories

  • Financial Times: GlaxoSmithKline’s chief executive has opened the possibility of the group being broken up in the future as he pushes through a sweeping overhaul of Britain’s biggest drugmaker.
  • Daily Mail: Lloyds Banking Group is to set aside another £500 million to compensate customers mis-sold payment protection insurance – taking its total bill for the scandal to more than £10 billion.
  • Financial Times: The US on Sunday stepped up its accusations of direct Russian military action against Ukraine, publishing satellite images it claimed were evidence of Russian artillery firing on Ukrainian forces.
  • The Daily Telegraph: Olivier Bohuon puts Smith & Nephew under the knife; the firm's boss has used his experience in the pharma industry to streamline a business that was stuck in a rut.

Business and economics

  • Daily Express: Budget flyer Monarch Airlines is eyeing up an investment boost to help it soar past rivals.
  • Daily Express: Pressure on the Bank of England to hike interest rates by the end of this year is set to increase in the next few weeks as new figures reveal that the UK economy is powering away from recession.
  • Financial Times: Airline insurers are reviewing cover for aircraft involved in hostile acts such as the downing of Malaysia Airlines flight MH17 as the industry faces its most expensive year since the 9/11 attacks in 2001 with annual losses set to pass $2 billion.
  • The Guardian: HSBC, Deutsche Bank and the Bank of Nova Scotia have been accused of attempting to rig the price of silver in the latest price fixing scandal to rock the banking industry.
  • Daily Mail: The US economy has bounced back following a dismal start to the year, experts said last night; gross domestic product dropped at an annual rate of 2.9% in the first quarter as freezing weather took its toll.
  • Daily Mail: Profit warnings hit a three-year high in the first half of 2014 as intense competition and the strong pound took their toll on British firms; a report from EY found UK-listed companies issued 137 in the first six months of the year, up 9 per cent on the same period last year and the highest first-half total since 2011.
  • The Guardian: The boss of Ovo Energy, one of Britain's fastest-growing new power suppliers, has taken £2 million out of the business for his own use at a time when the startup is struggling to break even.
  • The Guardian: The British taxpayers underwrote more than £100 million worth of exports to Russia last year, including the sale of Airbus aircraft to an airline leasing firm linked to the state arms company Rosboronexport and owned by a Russian bank subjected to US sanctions.
  • The Guardian: Shanghai Husi Food Co Ltd, owned by Illinois-based OSI Group LLC, is at the centre of a major food safety scandal, which has spread from China to Hong Kong and Japan, over allegations it mixed fresh and expired meat.
  • The Independent: The Dragons’ Den star Piers Linney has vowed to make the Government “walk the walk” on helping small businesses to win lucrative work in Whitehall, as he joins a specialist Cabinet Office panel.
  • The Independent: Britain’s banking sector will attempt to dispel the clouds surrounding it and show that it isn’t only Royal Bank of Scotland that is benefiting from the economic recovery as the reporting season gets into full swing this week.
  • The Independent: Malaysia Airlines could change its name in a radical attempt to rebrand and rebuild itself following two disasters in the past four months that have left the business on the brink of collapse.
  • Financial Times: The former chairmen of UBS and Glencore have teamed up to launch a new advisory business, Cartesius Advisory Network.
  • Financial Times: A small UK private bank, C. Hoare & Co, that is “proud to be boring” has poached several hundred new clients from big rivals such as RBS and Barclays, increasing its customer deposits by 12% in the process.
  • Financial Times: The Federal Reserve Bank of New York is stepping up pressure on the biggest banks to improve their ethics and culture, after investigations into the alleged rigging of benchmark rates led officials to conclude bankers had not learnt lessons from the financial crisis.
  • Financial Times: Foreign luxury carmakers including Jaguar Land Rover, Audi and Daimler are cutting retail prices for popular models or auto parts after coming under fire from China’s anti-monopoly regulators.
  • Financial Times: UBS was exploring an out-of-court settlement of about €100 million with French authorities investigating how the Swiss wealth manager dealt with some of its rich clients, before talks between the two parties collapsed two weeks ago.

Share tips, comment and bids

  • Financial Times: Danone, the French consumer group, is in talks to sell its medical nutrition business to US rival Hospira in a deal that would allow the buyer move its tax base to Europe.
  • Financial Times: Sankaty Advisors, the credit arm of Bain Capital, is paying more than $1 billion for the debt portfolio of JP Morgan’s principal investment group.
  • Daily Express: E-Telequote plans to list on Aim at the end of this month to increase subscriber numbers, launch new marketing strategies and pursue expansion.
  • Daily Express: A clothing outfit seeking a bigger foothold in China’s booming fleece coats and hiking boots market is striding on to Aim; Fraspens is looking to raise about £4 million, valuing the business at £40 million.
  • Daily Express: Shares in Home Retail Group will be in focus this week following speculation that it is looking to sell its DIY chain Homebase.
  • Financial Times: Diageo, the world’s biggest spirits maker, is to write down the value of its majority stake in its troubled premium Chinese baijiu brand, after plummeting sales of the 600-year-old white spirit.
  • The Guardian (Comment): From Concorde to the iPhone, state intervention drives technological innovation.
  • Financial Times (Lex): US pensions: in the complex world of pension accounting, low interest rates can hurt funding status even if a provider’s investment gains are big.
  • Financial Times (Lex): Miners: cost-cutting remains central to the investment case. What costs, though?
  • Financial Times (Lex): Amazon: Shareholders may not tolerate this bet on web services for much longer, without knowing the venture’s revenues, margins or future projections.

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Profile: Kevin Doran's formula for success at AJ Bell

Profile: Kevin Doran's formula for success at AJ Bell

From a degree in theoretical physics to teaching and becoming one of the youngest chief investment officers in the UK, Kevin Doran has certainly had an interesting career.

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