The Times
Apple fears iPhone sales may be on the decline: Apple reported the largest quarterly profit ever made by a public company, but it also confirmed fears that the remarkable growth that transformed it into the world’s largest company is at an end.
Qatar ready to back new Sainsbury’s bid for HRG: J Sainsbury is close to securing the support of its largest investor for a renewed bid for Home Retail Group as pressure mounts ahead of a looming takeover deadline.
Carney plays waiting game before deciding when to go: Mark Carney may remain as the Governor of the Bank of England for a full eight-year term, despite pledging to serve just five. Yesterday he revealed that he had not made up his mind but would “by the end of the year”, causing consternation among MPs.
Regime change at Channel 4 signals a political shift: The privatisation of Channel 4 appeared to come a step closer when the broadcaster appointed a Chairman with a track record of company flotations and disposals.
The Independent
Oil price crash looks like sub-prime mortgage crisis, bank warns: The oil price crash looks “remarkably similar” to the subprime mortgage crisis, according to analysts at one U.S. Bank.
Andrew Bailey appointed as new Boss of Financial Conduct Authority: Andrew Bailey, the deputy Governor of the Bank of England, has been picked as the new Chief Executive of City watchdog the Financial Conduct Authority.
Easyjet revenue affected by Paris and Egypt terrorist attacks: Easyjet has said its revenue per seat in November and December took suffered a sharp drop following terrorist attacks in Paris and Egypt.
Financial Times
Dixons Carphone to close more than 130 stores: Dixons Carphone, the U.K.’s largest electrical and mobile phone retailer, is to close more than 130 stores as it rolls out a “three-in-one” format combining its three main brands in one store.
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Strong U.S. dollar weighs on consumer goods groups: The strong dollar is taking its toll on the world’s largest consumer goods companies, forcing many to raise prices and cut costs amid an increasingly unsettled global economic environment that is prompting warnings about volatile trading ahead.
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HSBC and Barclays to quit U.K. mortgage trade body: Two of the U.K.’s largest banks have quit the mortgage trade body ahead of an industry decision on whether to merge a number of associations.
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Purplebricks plans recruitment drive: Aim-listed estate agency Purplebricks said it had increased instructions to 1,660 in January and plans to step up recruitment after it raised £22.8 million in its December float.
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Carpetright shares tumble on fears of squeezed margins: Shares in Carpetright slid more than 11% on Tuesday after the U.K.’s largest flooring company said increased competition and changing tastes would hit profits per sale this year.
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AIG to return $25 billion after activist siege: American International Group’s Chief Executive has pledged to return $25 billion to shareholders as he defies demands from activist investors Carl Icahn and John Paulson to break up the world’s fourth most valuable insurance company.
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Freeport-McMoRan extends list of assets for sale: Freeport-McMoRan is extending the list of assets it is willing to sell as the deepening commodities rout makes it more difficult for the U.S. copper and oil producer to deal with its $20 billion of debt.
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Lex:
Apple: changing the subject: Apple is trying to fix the reality distortion field. For decades it helped Steve Jobs inspire developers and customers. Now it is backfiring; the shares have fallen a quarter since July and were stagnant after-hours on Tuesday even following record quarterly results.
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AIG: stakes in the ground: The existential conflict at AIG is hard to miss, given its placement on the first page of its strategic update, right at the top of the page. The presentation from the insurance group, released on Tuesday, is titled “Strategic Actions to Maximise Shareholder Value”.
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U.K. mobile: out of Eden: Journalist Ida Tarbell’s exposé forced Rockefeller’s Standard Oil to change its predatory behaviour. In the days before formal regulatory oversight, something had to be done.
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Lombard:
Credible Cruddas: Peter Cruddas, Chief Executive and Founder of CMC Markets, will be conscious of that maxim as he tries to float the spread betting group on a choppy market.
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Tax flip-flop advisable: The U.K. taxman is examining whether Facebook owes back taxes. Founder Mark Zuckerberg will hardly be quaking in his Adidas sandals after Google settled for £130 million. MPs claim that the internet search group pays a tax rate of just 3% in the U.K.
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The Daily Telegraph
EU botched billion euro bail-outs during financial crisis, says spending watchdog: The European Commission mishandled government bail-outs in the wake of the financial crisis, imposing harsher conditions on member states as contagion spread across the continent, the EU’s Court of Auditors has found.
‘Devastating’ Brexit will consign Europe to a second rate world power, warns Deutsche Bank: Britain’s exit from the European Union would have a “devastating” impact on the continent, relegating Europe to the status of a second-rank world power, a leading investment bank has warned.
Transport Secretary defends new Heathrow delay: Opponents of airport expansion “could not have been more wrong” if they saw the latest delays to a new runway in the South East as a victory, the Transport Secretary will claim on Wednesday night.
Windfarms paid double the market price to cut power: Wind farms were paid more than double the market price to stop generating electricity this week, despite the country facing an increased risk of blackouts this winter.
RBS could pay investors £15 billion by 2020: Royal Bank of Scotland should soon start paying out billions of pounds to shareholders as its near-decade of litigation, compensation and bad loan losses comes to an end, according to analysts at UBS.
Scotland piles pressure on Treasury to cut North Sea tax: The Scottish Government is calling for an urgent meeting with the U.K. Treasury to demand the North Sea’s tax burden is cut.
The Questor Column:
Sell PZ Cussons as debt levels jump: Shares in PZ Cussons tumbled by as much as 13% to their lowest level in more than six years, as the oil crisis hit the compaany’s African markets. The maker of Imperial Leather soap, Original Source shower gel and Morning Fresh washing powder has been hit hard after the plummeting oil price slashed consumer spending in Nigeria, its largest African market. The company has spent almost £160 million on acquisitions in the past five years. The greatest focus was Australia, with £26.3 million spent on haircare brand Fudge, £43.4 million on organic yoghurt maker five:am, and £42.2 million for babyfood maker Rafferty’s Garden. The spending didn’t stop pretax profits tumbling to £84 million last year, down from £108.1 million in 2011. Meanwhile, net debt levels increased to £157.4 million at the end of May last year, reversing the £52 million in net cash on the balance sheet in 2011. The company said that net debt levels had increased again to £191 million at the end of November. Putting that in perspective, net assets were £462 million. The company generates 65% of revenue and 41% of operating profit from Africa and Asia, where profits fell 13% and 5% respectively during the six months to the end of November. The European division, which contributes about 60% of group operating profits, performed well, with new product launches from Carex and St Tropez lifting operating profits by 4.7% in the first half. Based on the current elevated rating and the illiquid nature of the shares – the founding family still owns a 35% stake – Questor thinks the most prudent option would be to exit the shares until the company can demonstrate a turnaround. PZ Cussons at 249.3p -24.3p. Questor says “Sell”.
The Guardian
Tory party donor Lycamobile faces being struck off U.K. company register: Lycamobile, one of the Conservative party’s largest corporate donors, is at risk of being struck off the register of U.K. businesses after failing to file accounts on time.
Anger as government blocks TTIP legal documents relating to health service: The controversial trade deal between Europe and the U.S. has come under further fire after campaigners accused the government of blocking access to legal advice that shows its impact on the health service.
EDF struggling to fund new Hinkley Point nuclear reactors: The U.K.’s first new nuclear power plants for decades face fresh delays amid reports that French energy giant EDF is unsure it can finance the £18 billion project.
London prime shop rents leap 9% in last quarter of 2015: Rents for prime central London shops soared 9% in the final quarter of 2015, the fastest growth since 1988, as luxury retailers battled over a limited number of sites in the capital’s hottest locations. Over the whole year, rents in the heart of the capital rose by an average 18%.
Fairline Boats former staff ‘queuing at gates’ to work after Russian takeover: Former employees of collapsed yacht builder Fairline Boats are “queuing at the gates” for jobs under its new Russian Owners but only 100 positions will be available, according to its managing director.
Oil prices to stay near current level throughout 2016, World Bank says: The World Bank has slashed its forecast for oil prices this year, saying the cost of a barrel of crude will stay near its current lows for the rest of 2016.
Daily Mail
City bigwig who famously admitted that he paid less tax than his cleaner is appointed Chairman of estate agent Savills: The City financier who admitted he paid less tax than his cleaner has become Chairman of Savills.
Concern over decision to appoint former bank lobbyist tainted by the Libor scandal as key tax adviser to George Osborne: MPs have questioned the decision to hire a former bank lobbyist tainted by the Libor interest rate rigging scandal as a key tax adviser to George Osborne.
The Treasury Select Committee published its report into the appointment of Angela Knight to chair the Office of Tax Simplification, a task force set up by the Chancellor to make tax bills more simple.
Marston’s toasts robust festive trading – and took £3 million on Christmas day alone: Shares in Marston’s shares are riding high after the Pitcher & Piano Owner posted a sales rise over the key Christmas period and announced it will opening more pubs in the year ahead.
City Tycoon and former Tory Party Treasurer Peter Cruddas set for a £200 million windfall as he reveals CMC float: City tycoon Peter Cruddas looks set for a £200 million windfall from the listing of his spread-betting empire on the stock market.
Housebuilder Crest Nicholson reports 32% rise in profits thanks to booming demand for new homes: Crest Nicholson reported a 32% rise in profits as it became the latest housebuilder to benefit from booming demand for new homes.
Argos Chief operating officer quits as Sainsbury’s prepares a fresh takeover swoop: Argos has lost a key lieutenant just days before Sainsbury’s is expected to make a fresh bid to snap up the High Street chain.
Daily Express
Bank of England Governor hints British EU exit would spark interest rate rise: The Bank of England (BoE) Governor has hinted the merest risk of Britain leaving the European Union (EU) could cause interest rates to rise.
Changed Tesco ‘will do better’ vows Boss Dave Lewis: Tesco vowed to continue to rebuild relationships with its suppliers after “seriously breaching” industry rules designed to protect them in order to boost its financial performance.
Russia gripped by financial storm as its economy shrinks by almost 4%: Russia is in the middle of its worst financial crisis for years, as the country is battered by plunging oil prices and international sanctions.
Tesco withheld supplier payments to boost its books, investigation finds: Supermarket giant Tesco repeatedly and deliberately delayed payments to suppliers to improve its financial position, an investigation has found.
The Scottish Herald
New President for Glasgow Chamber: Transport specialist Neil Amner, a partner of Scottish law firm MacRoberts, has succeeded Vic Emery as President of Glasgow Chamber of Commerce.
Scottish manufacturing sector posts sharp falls in output and orders as ‘march of makers’ proves elusive: The Scottish manufacturing sector recorded its sharpest fall in new orders for four years in the three months to January as its employment declined at the fastest pace since the start of 2011, a survey has shown.
Farming incomes fall for second year running: Scotland’s farmers will not be surprised to hear that total income from their farming efforts took a dive during both 2014 and 2015, the first consecutive fall since the 1990s.
Plexus Holdings targets Russian oil and gas market for its wellhead technology: Plexus Holdings, the oil and gas well technology firm, is to enter the market in Russia after signing licensing deals with two manufacturers in the country.
Funding fuels growth for Livingston manufacturer: Stevenswood, the Livingston-based manufacturer of windows, doors, conservatories and kitchens, plans to open ten new trade outlets this year after announcing a 23% increase in sales.
Spark Energy signs up with Macquarie Group: Selkirk-based Spark Energy has signed up to a wholesale energy trading agreement with Macquarie Bank for the supply of its gas and electricity in a deal it says will shield its customers from wholesale price fluctuations and ensure stable prices.
The Scotsman
PC World parent to axe more than 130 stores: Retail giant Dixons Carphone is to shut more than 130 stores under plans to roll out electrical superstores merging its three main brands across the U.K. and Ireland.
Contract win gives Zeta-pdm springboard for growth: Energy industry specialist Zeta-pdm has secured a £500,000 contract for a Saudi Arabian project.
Housing to be foundation of growth for Scots construction: Growth in Scotland’s construction industry over the next five years will be driven by housebuilding, but is expected to lag behind the U.K. average as concerns remain over a shortage of skilled workers, according to research published.
Energy firm Everoze chooses Fife for Scottish base: Scotland’s renewable energy sector has received a boost with the announcement by technical and commercial energy consultancy Everoze that it is opening a base in Fife.
City A.M.
Challenger Metro Bank unveils plans for £1.9 billion float as it prepares to reveal reversal of losses: Metro Bank is set to unveil plans for a massive £1.9 billion float, and could be listed by the end of February, according to reports.
Sushi and sandwich maker Greencore serves up a jump in quarterly sales: Food supplier Greencore has recorded a 7.2% jump in first quarter sales, boosted by new product launches and strong growth in its convenience food business.
Generali Boss Mario Greco leaving to take up Chief exec role at rival Zurich Insurance: Mario Greco, Chief Executive of Italian insurer Generali, is to step down at the end of his current contract, in order to take up the helm at Zurich Insurance.
Brent and U.S. crude: Oil prices rise above $30 per barrel on hopes of deal to ease supply glut: Oil prices rose above $30 per barrel, on hopes the world’s oil producing nations could reach deal to tackle the global supply glut.
Tesco faces legal battle with shareholders over profits scandal: Angry shareholders are poised to launch legal action against Tesco over the billions of pounds in value wiped off the supermarket chain in 2014 following revelations of its £265 million profits black hole.
U.S. services PMI disappoints, but consumer confidence climbs as Fed meets over interest rates: The latest U.S. services purchasing Managers index (PMI) has come in below expectations, further adding to the challenge faced by the U.S. Federal Open Market Committee (FOMC), who are deciding on whether to change the benchmark interest rate over the next 18 hours.
