Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Tuesday Papers: KFC runs out of chicken in logistics fiasco

Tuesday Papers: KFC runs out of chicken in logistics fiasco

Top stories

  • Financial Times: Almost two-thirds of the UK branches of KFC remained closed on Monday after the breakdown of a new supply contract for chicken with delivery network DHL, which had promised to set “a new benchmark” for service to the global fast food outlet.
  • The Times: Two more shareholders, Baring Asset Management and Plato Investment Management, in BHP Billiton have put pressure on the board of the FTSE 100 mining giant by urging it to consider dropping its dual listing, which Elliott Advisors, an activist investor, says is “obsolete and value destroying”.
  • The Daily Telegraph: BT has put its cable-making arm up for sale in a sign of efforts to simplify and focus its business following a string of disasters.
  • Financial Times: Deutsche Bank is cutting between 250 to 500 investment banking and trading jobs ahead of its 2017 bonus payouts in the latest round of restructuring under a five-year turnround plan.
  • The Times: The European Central Bank has stopped payments by Latvia’s third biggest bank after ABLV was accused by the US authorities of breaching sanctions against North Korea, leading to a drying-up of liquidity.
  • Financial Times: German chancellor Angela Merkel gave her strongest hint yet as to who she sees as her potential successor by installing Annegret Kramp-Karrenbauer in the critical role of secretary-general of her Christian Democratic Union.

Business and economics

  • The Times: Directors of Carillion were “contemptuous” of their obligations to the company’s 29,000 pension fund members while regulators intervened to help far too late, MPs investigating the collapse of the construction group suggested.
  • The Daily Telegraph: Banks need to start preparing for the death of Libor in 2021 or a smooth transition away from the scandal-hit benchmark will be "highly unlikely" and pose considerable risks.
  • The Times: Bitcoin steadied above $11,000 yesterday after breaking through the price mark for the first time since January over the weekend.
  • The Daily Telegraph: Trading software firm Fidessa was the biggest riser on the FTSE 250 on Monday as it vowed to cash in on a major piece of EU legislation shaking up the City.
  • Financial Times: Shares in Reckitt Benckiser suffered their biggest fall in seven years on Monday, after the consumer goods company behind household brands such as Dettol disinfectant and Finish washing detergent warned that pricing pressures would continue to hit margins.
  • Daily Mail: Local shop chain McColl’s saw shares dip more than 10% at one point today after it said the demise of supplier Palmer & Harvey has caused its sales to dip.
  • The Times: Earnings at Petra Diamonds fell in the first half of last year as it sought to reassure investors that it has sufficient capital not to breach debt covenants.
  • Financial Times: Noble Group has warned it will report a massive annual loss for 2017, including a weak performance from the businesses that are due to form the core of the restructured crisis-hit commodity trader.
  • The Daily Telegraph: Precision instrument manufacturer Spectris is to move away from supplying products to its customers to a model more focused on services as demand for testing increases.
  • The Times: Enquest says that its Kraken project has overcome start-up issues and is now performing better than expected, sending shares in the North Sea oil producer sharply higher.
  • Daily Mail: The controversial boss of Jet2 was £68 million richer last night after a bullish trading update drove shares in his business to a record high.
  • Financial Times: Five months after Hurricane Maria, Puerto Rico’s government is shifting from disaster recovery to pitching for business, telling multinational companies that the island that has defaulted on its debt obligations and is still struggling to restore power is on the brink of “an economic transformation”.
  • The Guardian: Jamie Oliver’s upmarket Barbecoa steakhouses in London have crashed into administration, with 80 staff losing their jobs at the group’s Piccadilly site.
  • The Times: Oleg Deripaska, the billionaire industrialist who famously entertained George Osborne, the former chancellor, and Lord Mandelson on his super-yacht, is to step down as president of the aluminium giant Rusal and the power company En+.
  • Financial Times: Saga, the ailing insurance and travel group, has turned to industry veteran Patrick O’Sullivan as it looks to pull itself out of trouble.

Share tips, comment and bids

  • The Times (Tempus share tips): HOLD Murray Income Trust; HOLD Spectris.
  • The Daily Telegraph (Questor share tips): Prospect of management DIY to boost Wickes owner Travis Perkins makes it a good time to buy.
  • The Times: Energean, the oil and gas explorer focused on the Mediterranean, is planning to raise $500 million through an initial public offering next month.
  • The Guardian: Maplin, which was founded in 1972 and has more than 200 stores nationwide, is in talks with several potential buyers and hopes to strike a deal this week.
  • The Guardian: Sir Philip Green has poured cold water on a report that he is in talks to sell his Arcadia retail empire, which includes Topshop and Miss Selfridge, to the Chinese firm Shandong Ruyi.
  • Financial Times: French luxury house Chanel has teamed up with global ecommerce platform Farfetch to develop digital initiatives including a branded app to help create a personalised in-store experience as well as better target millennial consumers.
  • Daily Mail: Predatory turnaround firm Melrose is planning to offload one of its divisions as it ramps up its £7.4 billion fight for engineer GKN.
  • The Times: Leyland SDM, which has 21 shops across the capital, is to be sold for £82.4 million, delivering a fortune for its resolutely private founding family.
  • The Times: Balfour Beatty has sold another 5% in Connect Plus, which operates the M25, for £42 million to Equitix Investment Management.
  • Financial Times: ValueAct, the activist investor, has emerged as the third-largest shareholder of Merlin Entertainments in the latest example of US hedge funds targeting UK and European companies.
  • The Daily Telegraph (Comment): Political risk rises in Italy as anti-euro rebels flirt with real power.
  • The Times (Comment): The EU’s hard line on financial services reeks of hypocrisy.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
1 Comment Play CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

Do not miss the first two minutes of this film as Richard Buxton shares how he has been challenged by a client for owning shares in a certain company.

Play CEO Tapes: the huge opportunities for asset managers

CEO Tapes: the huge opportunities for asset managers

From tech disruption, retirement and poaching, the CEO discuss the opportunities for their businesses in this episode.

Play CEO Tapes: 'we're just a bunch of white dudes sitting here'

CEO Tapes: 'we're just a bunch of white dudes sitting here'

In our brand new series, eight CEOs discuss how the industry could do a better job for female fund managers.

Read More
Wealth Manager on Twitter