Newspapers: The Times, Independent, FT, Telegraph, Guardian, Mail, Express, Herald 050716

The Times

Standard Life halts property fund exits: Standard Life Investments suspended dealings in its £2.9 billion U.K. Real Estate fund yesterday after investors rushed to withdraw their cash in the wake of the Brexit vote.

EU ‘will get more work done with Britain gone’: Britain could lose up to 4.5 percentage points of growth by 2019 if it presses ahead with Brexit, the head of the International Monetary Fund has said.

Debt soars to £41 billion on Network Rail: Network Rail’s debt ballooned to more than £40 billion for the first time last year as delays worsened on Britain’s ageing railways.

Italian bank ‘must slash its bad debts’: The European Central Bank has ordered the world’s oldest lender to slash its bad debts. With €46.9 billion of non-performing loans on its books, Banca Monte dei Paschi di Siena is the worst performer among Italian banks that are saddled with a total of €360 billion in bad lending.

Capita recruits top man at PwC as its next Chairman: One of Britain’s top accountants is to take over as Chairman of the country’s biggest outsourcing company.

Investors move market in search for a silver lining: Nervous investors pushed the price of silver to a two-year high as the Brexit-inspired scramble for precious metals continued.

Ofgem turns up the heat on Extra Energy: Britain’s worst-performing energy company is to be investigated by Ofgem after a huge surge in customer complaints. The energy market regulator said that it would examine whether Extra Energy had violated rules related to billing, customer service and the handling of complaints.

The Independent

The irony of David Harding, top Remain donor, who earned £828 million after Leave won the EU referendum: The hedge fund owned by a prominent donor of the Remain campaign earned a multi-million consolation prize after Britain’s historic decision to leave the EU.

George Osborne corporation tax cut is the wrong way to start EU negotiations, former WTO Boss says: Chancellor George Osborne’s decision to slash UK corporation tax from 20% to 15% has been criticized by the former Director General of the World Trade Organization, who said it was “not the right way psychologically to prepare” for negotiations over tax and trade with the EU.

LSE shareholders back Deutsche Boerse merger: London Stock Exchange shareholders have approved the company’s merger with Deutsche Boerse. There were fears the EU referendum would derail the deal worth £21 billion.

Financial Times

Blackstone recruits ex-M&S Chief Marc Bolland: Marc Bolland, who was Chief Executive of retailer Marks and Spencer for six tumultuous years, is joining Blackstone, the world’s largest alternative asset manager to head up its European private equity portfolio operations.

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U.K. companies expected to cut dividends in wake of Brexit vote: Dividend cuts are expected at some of the U.K.’s biggest companies as the fallout from the decision to leave the EU threatens to hit investor payouts.

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Battle lines drawn over London’s role in euro clearing: As the dust from Brexit settles, the battle over one of the City of London’s prestigious businesses is already escalating. François Hollande, President of France, is the loudest voice calling for euro-denominated clearing to be conducted outside London.

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Point72 mines social media to lure traders: Steven Cohen’s comeback plan has already seen his family office restructure incentives, shuffle management and attempt to reshape its culture. Now Point72 Asset Management, the sequel to his hedge fund SAC Capital, is making a move into social media.

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Shell seeks exemption to North Sea clear-up rules: Royal Dutch Shell wants to leave behind steel and concrete structures as large as the Empire State Building when it abandons one of the biggest oil and gas fields in the North Sea.

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U.S. oil and gas groups face financing constraints: Bond sales by U.S. independent oil and gas companies have fallen to their slowest rate for more than a decade, in a warning sign of financing constraints that could hold back the industry’s recovery.

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Nigeria President shakes up state oil group: Muhammadu Buhari, Nigeria’s President, has removed the deputy oil minister from his joint role as the national oil company’s Managing Director and appointed a new board. The decision to remove Emmanuel Ibe Kachikwu from the top job at the Nigerian National Petroleum Corporation is viewed by industry insiders as positive and long overdue.

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Oando sells majority stake in downstream business to Vitol: Nigerian energy group Oando has sold a majority stake in its fuels business to trading house Vitol and Helios Investment Partners for $276 million as it moves to restructure its business to deal with low oil prices.

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Boeing Chief Executive seeks to close gap on Airbus: Dennis Muilenburg has been in the Boeing hot seat for barely a year and already the U.S. aerospace and defence group’s new Chief Executive is facing some of the most difficult challenges in the company’s 100-year history.

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Diageo invests in non-alcoholic drink Seedlip: After 257 years in the spirits and beer business, Diageo has made its first investment in a non-alcoholic drinks company.

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Lex:

Monte dei Paschi di Siena: Quantum finance: Do not overstate the importance of the move in Monte dei Paschi di Siena’s shares on Monday. True, the shares lost a tenth and hit a record low. But at 34 cents, down from €14 five years ago, they had already lost so much value as to obey the laws of quantum finance rather than the Newtonian rules that apply to healthy companies.

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London Stock Exchange / Deutsche Börse: exchange of views: If you did not like the London Stock Exchange-Deutsche Börse deal before the U.K. voted to leave the EU, you are unlikely to be more enamoured of it now. If, however, you found the deal sensible from industrial and regulatory points of view, you should do so still. What has changed is not the business or the rules governing it, but the politics.

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U.K. economy: of all you survey: The last time Britain conjured a homegrown recession, the then-Chancellor sped his descent into political oblivion by proclaiming “the green shoots of economic spring” amid rising repossessions and 10% unemployment.

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Clarkson: choppy seas: Clarkson has seen enough downturns in its 164-year history to understand that shipping is, and will forever be, a cyclical industry. There are basically three defences against the ebb tides: scale, diversity and financial strength.

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Lombard:

Pray that ‘gating’ of Standard Life fund is an oddity: There is a worrying whiff of investor panic in the news that a £2.9 billion retail property fund has suspended redemptions. Retail investors had been rushing to cash in units in Standard Life’s U.K. Real Estate Fund in the wake of the Brexit vote.

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The Daily Telegraph

S&P scoffs at ‘Armageddon’ warnings for Britain: Britain will scrape by without a full-blown recession over the next two years as a weaker pound cushions the Brexit shock and panic subsides, Standard & Poor’s has predicted.

Government must give ‘shot in the arm’ to businesses following Brexit vote: Britain’s biggest business groups have urged the Government to speed up investment in housing, roads and energy projects to boost growth and raise living standards in the wake of the Brexit vote.

Waitrose targets foreign sales with British Corner Shop online tie-up: Waitrose has unveiled plans to sell more products overseas after striking a deal with online retailer British Corner Shop.

Belgium accused of bowing to Kremlin ‘bullying’ in $50 billion Yukos row: The former owners of the oil giant Yukos have accused the Belgian government of caving in to “bullying” by the Kremlin after it attempted to block court moves to seize Russian state assets.

Superdrug profits rise on eyebrow grooming trend: Eyebrow grooming and travel vaccinations lifted Superdrug’s profits by 62% last year after the high street retailer added more services to lure shoppers into its stores.

Stonegate ‘no plans to float’ amid Brexit turmoil: Pubs business Stonegate has “absolutely no plans” to pursue a £1 billion float amid the current stock market turmoil caused by Britain’s decision to leave the European Union.

Bank of England could pump up funding for lending after Brexit, says Osborne: The Bank of England and the Treasury could pump up the funding for lending scheme in an attempt to support the economy after the Brexit vote, the Chancellor has said.

Internet piracy falls to record lows amid rise of Spotify and Netflix: Internet streaming services such as Spotify and Netflix have resulted in online piracy falling to its lowest rate in years, an official report claims.

The Questor Column:

CMA threat passes but political risk remains for Centrica: A potent combination of political and regulatory risk and plunging commodity prices have plagued British Gas owner Centrica in recent years. From a peak of 402.2p in September 2013, its shares fell as low as 183.6p in February. Now the Competition and Markets Authority (CMA) inquiry into the energy sector is finally over, and commodity prices have started to recover from the lows seen earlier this year, are things finally looking up for Britain’s biggest energy supplier? An investigation that threatened the possible break-up of the Big Six instead resulted in tinkering with retail market regulation and a price cap affecting just 13% of the market, those on pre-payment meters. Although Centrica’s retail division, British Gas, will take a direct hit from this cap – which analysts at Bernstein estimate could trim profits by £104 million in 2018 – this is already more than priced in to the shares. The prospect of scarce power supplies this winter could bolster prices further, while Centrica’s gas-fired plants should also benefit from the Government’s decision to bring forward the “capacity market”, offering subsidies for supplies from winter 2017-18. A rise in gas and power prices could also provide a near-term boost for British Gas, by diminishing the relative savings on offer from smaller suppliers and helping to stem customer losses. In May, Centrica shocked the market with a poorly-handled £700 million equity raise to help pay for the acquisitions and pay down debt to head off a likely credit rating cut. Analysts are divided on whether Centrica could still need to raise further capital, and will be looking for reassurance at its upcoming interim results. The CMA may not have inflicted much short-term damage on Centrica but it has also failed to “clear the air”, with many of the sector’s critics already unhappy at its conclusions. Centrica at 229.3p+0.3p. Questor says “Hold”.

The Guardian

Andrea Leadsom’s financial affairs under scrutiny again: Andrea Leadsom’s financial affairs under scrutiny again

Calls intensify to strip ‘incompetent’ Southern rail operator of franchise: Calls have intensified to strip Govia Thameslink Railway (GTR) of its franchise, after the Southern trains operator confirmed it would implement an emergency timetable cancelling hundreds of services every day.

Construction becomes first casualty of Brexit as housebuilders get jitters: Pity the poor brickmakers, soon their stockpiles will reach to the moon and back. That’s the message from private sector housebuilders, which have looked into the industry’s crystal ball and concluded that there is no reason to expand supply for the next six months.

Daily Mail

World’s largest ship broker admits business has been battered by weak global trade – underling crisis engulfing shipping industry: The world’s largest ship broker admitted its business has been battered by weak global trade – underling the crisis engulfing the shipping industry.

Activist investors calling for John Menzies to split in two and hire a Chairman: Activist investors are calling for John Menzies to split in two and hire a Chairman.

Daily Express

Sainsbury’s announced the closing of Netto U.K.: Netto is to disappear from the U.K. for the second time in six years after Sainsbury’s pulled the plug on its joint venture with the Danish discount retailer.

Three Ex-Barclays traders guilty of rigging key Libor bank rates: Three former Barclays employees have been found guilty of rigging a key bank interest rate between 2005 and 2007.

The Scottish Herald

Low & Bonar sells artificial grass business but keeps Dundee site: Textiles and performance materials business Low & Bonar is to offload its artificial grass yarns production business to Dubai-based Mattex Group for €27 million.

Takeover of Greenock-based BPI gets Euro clearance: The £261 million takeover of Greenock-based British Polythene Industries (BPI) by RPC Group has received unconditional merger clearance from the European Commission.

Oil and gas firm highlights North Sea funding challenges: Xcite Energy, which hopes to develop a giant oil field off Shetland, has highlighted the challenges facing firms in the North Sea saying ‘traditional’ sources of funding for big offshore projects are continuing to shun the area.

Scottish investment writing firms heads into Asian market: Copylab, a Scottish marketing communication firm for investment houses, is launching a new business in Asia with office openings in Hong Kong and Singapore. The company believes it will be the first of its kind operating in the Asian market.

Arran Brewery pulls Dreghorn plans after vandalism: Arran Brewery has confirmed it is pulling out of its plans for a bottling facility at its upcoming sake brewery in Dreghorn after the premises was repeatedly targeted by vandals.

Glasgow firm to give a glimpse of British political history: A number of major contract wins will boost revenue by 20% at Glasgow firm Automated Document Services as the firm works on digitalising 200 year-old parliamentary papers.

Owner of Scottish coal mines notes pros and cons of Brexit vote: Hargreaves Services, which owns what is left of Scotland’s coal mining industry, has highlighted the benefit of the fall in the pound following the Brexit vote although this seems unlikely to stop the firm winding down most of its operations in the country.

The Scotsman

Exova snaps up Welsh soil and water analysis outfit: Edinburgh-based materials testing group Exova has acquired a Welsh business that specializes in testing contaminated water and soil.

Boyd Legal switches focus to estate agency business: Edinburgh law firm Boyd Legal Solicitors has unveiled a shake-up that sees the practice part ways with its high-volume mortgage referral conveyancing team.

New legal counsel named at Scotch whisky trade body: The Scotch Whisky Association (SWA) has appointed Caitlin O’Donnell as legal counsel, joining its team of lawyers specializing in protecting Scotland’s national drink.

Peterhead blast cleaner DBS lands pipeline deal: A north-east company that specializes in protective coatings has completed a five-figure project on a “unique” well intervention system.

City A.M.

Dominic Chappell says BHS didn’t fail because of the money he took out: Dominic Chappell has today pushed back on claims that the collapse of BHS was caused by the money he took out of the business.

Business confidence falls “off a cliff” in wake of EU vote: Business confidence has been rocked in the aftermath of the EU referendum, with the number of firms feeling down about the economy doubling in the week after the vote.

Chancellor George Osborne pushed the German government into stressing the “irreversible” nature of a Brexit vote, and warning of a lack of access to the Single Market: George Osborne asked Germany to stress the “irreversible” nature of a Brexit vote in the build up to last month’s referendum, German finance minister Wolfgang Schauble has said.

Endless seals purchase of Yorkshire ambulance converter: Turnaround investor Endless has bought one of the U.K.’s leading vehicle converters. The Leeds-based fund today announced the deal to buy Oughtred & Harrison (O&H), with the promise to refinance the group and inject additional working capital.

Columbia Threadneedle commits to London as asset managers plan Brexit discussions: Fund manager Columbia Threadneedle has committed to keeping its European headquarters in London after Brexit.

Johnston Press flogs Isle of Man titles for £4.25 million: Debt-laden newspaper owner Johnston Press today announced the sale of a number of its Isle of Man-based titles for £4.25 million.

Big firms suffer as investment banking fees plunge 23% in first half of 2016: Investment banking (IB) fees plunged by more than a quarter in the U.K. and Ireland in the first half of 2016, new figures show.

U.K. private equity firm 3i brushes up €102 million from cosmetic business sale: Private equity group 3i has announced the sale of a German company which makes cosmetic brushes. Geka has been sold to Swiss company Sulzer, which specialises in “pumping solutions, rotating equipment services, and separation and mixing technology”, for €178 million (£149 million).

Capita extends contract with the Pension Regulator to 2021: Support services giant Capita was today awarded a contract extension from the Pensions Regulator in a deal worth a further £37 million over three years.

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