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Tuesday Papers: Scramble to contain fallout of Carillion collapse

Tuesday Papers: Scramble to contain fallout of Carillion collapse

Top stories

  • Financial Times: The British government scrambled on Monday to contain the fallout from the collapse of Carillion, one of its biggest contractors, reassuring employees working on hospital, school and military contracts throughout the country that they would continue to be paid.
  • The Daily Telegraph: Melrose has sketched out its strategy to turn around acquisition target GKN, saying the FTSE 100 engineer lacks “clear focus” and “needs fundamental change”, as analysts predict it will improve its offer for the aerospace and automotive group.
  • Financial Times: Lego and Tencent have formed a wide-ranging digital partnership to develop games, online videos and a social media network for children in China, as the Danish toymaker seeks to restart its stuttering growth trajectory.
  • The Daily Telegraph: Airbus has posted record aircraft deliveries for the year but signalled further problems for its poorly selling A380 “superjumbo”.
  • The Times: Investors look set to have made hundreds of millions of pounds betting on the share price collapse of Carillion, the outsourcing company that slumped into liquidation today.
  • Financial Times: The EU has toughened up its conditions for a post-Brexit transition deal for the UK, demanding that Britain abide by stricter terms on immigration, external trade agreements and fishing rights for nearly two years after it leaves the bloc.
  • Financial Times: Citigroup has become the first big Wall Street bank to disclose internal data on gender pay, bowing to an activist shareholder that last year launched an unsuccessful campaign against six of the largest US financial institutions.

Business and economics

  • The Guardian: One in four of Britain’s poorest households are falling behind with debt payments or spending more than a quarter of their monthly income on repayments, according to a report by the Institute for Fiscal Studies.
  • The Times: The accounting watchdog has warned that it may launch an investigation into KPMG over its audit of Carillion, the construction and services group that has collapsed into liquidation putting thousands of jobs at risk.
  • The Times: The value of the pound has risen above $1.38 for the first time since the Brexit referendum, thanks to a weakening dollar and rising hopes that other European Union members will seek a relatively “soft” Brexit.
  • The Daily Telegraph: Rio Tinto shipped a record amount of iron ore in the final three months of 2017, helping the mining giant meet its annual target despite having been hit by poor weather and rail system issues earlier in the year.
  • Daily Mail: Shoppers flocked to Matalan in the run up to Christmas but it was online sales that gave the discount store a real boost.
  • The Times: Acacia Mining said that production of gold plunged at the end of last year as a tax dispute with Tanzania’s government continued to disrupt operations at its three mines in the country.
  • The Times: The departures of both its chairman and finance director after a second profit warning in two months prompted a share price slump at plastics company Carclo.
  • The Guardian: Tesco has simplified its Clubcard rewards scheme in a move it said made it easier to understand, but which has led to claims by critics that customers would gain less from participating brands.
  • The Times: Royal Dutch Shell and ExxonMobil are to invest more than $1 billion in redeveloping the Penguins field in the North Sea, trebling oil and gas output via a new production vessel that should extend the field’s life by a decade.
  • The Daily Telegraph: Punk IPA maker BrewDog has surpassed its £10 million crowdfunding target but opted to extend the deadline in a bid for even more cash.
  • Financial Times: McKinsey has been ordered by a South African court to forfeit its share of a R1.6 billion ($129 million) contract tied to the controversial Gupta family after prosecutors argued the fees may be proceeds of corruption.
  • Financial Times: Apple handed over an additional £81 million to the UK tax authority after an “extensive audit”, according to accounts published on Monday.
  • The Guardian: A little over four years since the Irish airline Ryanair allowed passengers to carry a second bag on board, passengers were on Monday getting to grips with new rules that meant they either had to pay £5 or put their wheelie suitcase in the hold.
  • Financial Times: Insurer Rothesay Life has appointed former Barclays finance chief Naguib Kheraj as its new chairman, replacing Ray King who will stay on the company’s board as a non-executive director.
  • Financial Times: The renminbi rose after Germany’s central bank said it would include the currency in its reserves, a move seen as boosting the internationalisation of China’s currency.

Share tips, comment and bids

  • The Times (Tempus share tips): BUY Edinburgh Investment Trust; AVOID Versarian.
  • Daily Mail: Softbank is pondering a listing of its mobile arm on the London Stock Exchange in a bid to raise £13.1 billion.
  • Financial Times: Xiaomi, the Chinese smartphone maker, has appointed Goldman Sachs and Morgan Stanley to lead a flotation later this year, which could value the group as high as $100 billion in the biggest tech IPO since Alibaba floated in New York in 2014.
  • Daily Mail: William Hill could sell its Australian business following a gambling crackdown Down Under.
  • The Times: The need to pare back its sprawling portfolio and bring costs under control has prompted Rolls-Royce to consider a sale of its components business L’Orange, a subsidiary based in Stuttgart, Germany, which makes diesel injection technology for large lorries and generators.
  • The Guardian (Comment): Blame the deluded board members for Carillion's collapse.
  • The Guardian (Comment): What went wrong with Carillion and where does it go from here?
  • The Daily Telegraph (Comment): The main unanswered questions raised by Carillion's collapse.
  • The Daily Telegraph (Comment): Banks and investors will shoulder the biggest burden from Carillion's collapse – and that's exactly how it should be.
  • Financial Times (Comment): Why Carillion has gone into liquidation rather than administration.

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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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