Newspapers: The Times, Independent, FT, Telegraph, Guardian, Mail, Express, Herald 070616

The Times

Watchdog is urged to dig into BHS sale: Fresh from lambasting the ”lamentable behavior” of Sir Philip Green in the sale of BHS, the Institute of Directors is pushing for the accountancy watchdog to investigate the transaction.

Yellen rules out rate rise but stresses positive news: The Chairwoman of the U.S. Federal Reserve has quashed any lingering expectations of an interest rate rise at the central bank’s policy meeting next week, suggesting that surprisingly weak job creation numbers last week had raised concerns about the outlook for the economy.

Fraudster cheated crowdfund investors: The Boss of a vodka business defrauded crowdfunding investors out of thousands of pounds in a case that raises fresh questions about standards of due diligence in the industry. Alan Colton, 35, duped users of Crowdcube, a crowdfunding website, into backing his plans for a flavored vodka and champagne business.

Good weather lifts consumer spending after poor half year: High street spending rose last month for the first time in more than half a year as the combination of good spring weather and the May bank holiday combined to give struggling retailers a welcome boost.

Co-ops trumpet growing value of mutual attraction: There may be hope for Britain’s beleaguered co-operatives as a report shows record membership numbers and a surge in value to £34 billion a year.

HSBC overhauls investment bank as shareholders push for better returns: HSBC has announced a sweeping reorganization of its investment banking division, becoming the latest City bank to order a shake-up to cope with a drop in the number of deals.

Bradford & Bingley loans taken back into private hands: Former mortgage customers of Bradford & Bingley will be dealt with by a private operator for the first time since its borrowing book was taken under state control.

Electra sells stake in Elian to record profit of £41 million: Electra Private Equity has sold its holding in a company offering offshore trusts and other services to corporations for a profit of £41 million.

Houses are what is made in Dagenham: The former Ford stamping works in Dagenham has been bought by two property investors who hope to see as many as 2,650 homes built on the site.

The Independent

Burberry Boss Christopher Bailey takes 75% pay cut after disappointing result: Christopher Bailey, Chief Executive of Burberry, received a 75% pay cut following a disappointing 12 months for the luxury fashion retailer.

EasyJet cancels more than 170 flights due to French air traffic strikes and bad weather: EasyJet cancelled more than 170 flights in May, the budget-carrier has said. There were 173 cancellations for the month, which were largely due to French air control strikes and poor weather.

Sir Philip Green dubbed ‘corporate crook’ as he faces fresh calls to lose knighthood over BHS collapse: Sir Philip Green has been called “little better than a corporate crook” and faced renewed calls for him to be stripped of his knighthood over the collapse of BHS.

Financial Times

Former LME Boss eyes new metals exchange: The former Head of the London Metal Exchange is considering setting up a metals exchange to rival the Hong Kong Exchanges and Clearing-owned bourse.

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Lukoil raises spending to boost output after price rebound: Lukoil on Monday said it was responding to the rebound in oil prices this year by increasing investments in its ageing Siberian fields in the hope of slowing a sharp fall in production.

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Shell’s asset disposal plans face delay: Royal Dutch Shell’s $30 billion asset disposal programme put in place after its takeover of BG Group is likely to drag on beyond 2018 if oil prices remain depressed.

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Rothschild & Co buys Martin Maurel: Investment bank Rothschild & Co has announced the acquisition of French regional private bank Martin Maurel in an effort to beef up its asset management business.

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New bank safety plans criticized for encouraging risky loans: Banks will be encouraged to lend more to their weakest borrowers and take on excessive risks if global regulators push ahead with a rule change aimed at making it harder to cheat on safety measures, a leading industry group has warned.

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Price of cancer drugs vastly higher in U.S., according to study: The price of cancer drugs in the U.S. is vastly higher than in other nations, according to new research that shines a light on how the cost of treating the life-threatening disease differs considerably depending on where the patient lives.

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Heseltine lays out plans to revive Teesside: Lord Heseltine has laid out his plans to rejuvenate Teesside, once at the heart of the industrial revolution, but now described by him as “a scene of desolation, a memory of industrial activity now gone” along four miles of its south bank.

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Germany urges EU to tighten law on car emissions cheating: The EU is facing calls from Berlin to tighten the ban on cheating in car emissions tests after revelations that manufacturers other than Volkswagen have been installing defeat devices in their vehicles without necessarily breaking the law.

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Redstone group moves to block Paramount stake sale: Sumner Redstone’s National Amusements group has moved to block Viacom from selling a minority stake in Paramount Pictures, the studio behind Teenage Mutant Ninja Turtles, intensifying the dispute between the Redstone family and the media group’s board.

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Brussels threatens to eradicate weed killer sold by Monsanto: The EU risks a legal showdown with agrichemical group Monsanto and farming unions after leading member states on Monday refused to extend a licence for glyphosate, the world’s most common herbicide.

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Lex:

OneSavings Bank: buy-to-fret?: Three staples of the British dinner party: screw-cap wine, hummus and a tiresome discussion of property prices.

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Brexit: the case for shrugging: Like a gambler playing Russian Roulette, currency traders need a feel for asymmetric outcomes. On average, the player comes out ahead, but the average is not what he will experience.

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U.S. economy: capital punishment: Last week Brent crude futures closed above $50 for the first time since November. Sighs of relief all round: how bad can the economy be when fuel prices are rising?

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DuPont/Chemours: acid trip: The Chief Executive of Chemours described the chemicals group as “a 200-year old start-up” when it was carved out of DuPont last year.

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Lombard:

Choir of entrepreneurs pumps up volume in praise of Brexit: Heard the one about the bloke who walks out of a bar because he did not like the pro-Brexit beer mats?

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The Daily Telegraph

Pain is not over yet for the global miners, PwC warns: High levels of debt and an uncertain global economy will continue to dog the big mining companies in 2016, a new report has warned.

U.K. nuclear parts from scandal-hit French factory get all-clear: Parts of the Sizewell B nuclear plant built at the French factory at the centre of a fakery scandal have been given the all-clear by regulators.

Oil demand to peak in 2030 as energy experts slash forecasts: Global oil demand could peak by the end of the next decade even as global economic growth climbs. The latest downward revision to forecasts, from consulting firm McKinsey, could leave major new investments uneconomic if demand for energy fails to meet expectations.

AstraZeneca unveils promising results for crucial cancer drug at oncology conference: A breakthrough oncology drug from AstraZeneca is showing promising long-term results in women with ovarian cancer, one of its leading scientists has revealed at a closely-watched pharmaceuticals conference.

Parkdean Resorts targets expansion as it bolsters existing holiday parks: The biggest holiday park operator in the U.K. has plans to expand across the country after unveiling full year results showing growth in all income areas in 2015.

Online estate agent HouseSimple cranks up the competition after £13 million investment led by Sir Charles Dunstone: Online estate agent HouseSimple has been backed by the Founder of Carphone Warehouse as it prepares an assault on its biggest rivals.

Goldman Sachs sells hedge funds stakes to AMG for $800 million: Affiliated Managers Group (AMG) has bought a series of stakes in investment companies from Goldman Sachs for $800 million.

The Questor Column:

Time to sell PZ Cussons after the rally?: PZ Cussons, the maker of Imperial Leather soap and St Tropez fake tan has appointed investment banker Caroline Silver as its new Non-Executive Chairman. PZ Cussons has more than a hundred years of trading experience in Africa, selling shampoo, soap, milk powder, detergents and electrical goods. Nigeria is the company’s largest market and the commodity-dependent economy has been hit hard by the slump in the oil price. The African business generated 35% of the group’s profits in 2014 before the oil price crash, and this had fallen to 23% in the latest interim results. The naira exchange rate has remained relatively stable during the two months to the financial year end of May. The risk is that even though the exchange hasn’t deteriorated further, and the oil price has risen 60% from January lows to more than $50 per barrel, consumers are still hamstrung by squeezed spending power. On a longer-term outlook the worry is that the company has offset the slowdown in Africa with expansion in Asia and Australia, buying haircare brand Fudge, organic yoghurt maker five:am, and babyfood maker Rafferty’s Garden. The company still has a solid European division, which contributes about 60% of group profits and delivered a steady performance in the first half of the year, boosted by Carex and St Tropez sales. It looks like some sensible dealmaking to trim underperforming brands and get the company back on track is exactly what the company needs right now. The last time we looked at the shares we got it wrong when we recommended selling at 249p in January after the tough first half results. We think the rally looks a little over-optimistic and ahead of the full year trading update on Thursday and the annual results on July 26, we are sticking with our long-term advice on this one. Sell. PZ Cussons at 336.7p +5.7p. Questor says “Sell”.

Wolseley shares fall on sales slowdown: Plumbing supply business Wolseley has suffered a 10% share price fall after a lackluster third quarter trading update last week. The company generates the majority of its revenue and profits in the U.S. and warned that industrial markets, which contribute about 14% of the U.S.’s £8.3 billion revenues, experienced weaker demand. The company operates the Ferguson brand in the U.S., where orders have been lower due to a slump in activity from oil and gas-related customers. The global commodity slowdown has also hit trading elsewhere. Canada showed 0.1% like-for-like revenue in the third quarter ended April, but gross profit margins were lower. The Nordics business, which covers Denmark, Sweden and Finland, showed a 2.6% fall in like-for-like revenue as bad weather hampered sales. Trading is still tough in the U.K, Wolseley’s home market. Here, like-for-like revenues were down 0.4%, during the third quarter as repairs and maintenance remain weak. The company will report on a review of U.K. operations in August. Wolseley as a whole reported 2.8% like-for-like revenue growth. The concern is that the U.S. juggernaut is showing signs of slowing and that leaves the shares trading on 15 times forecast earnings looking exposed. The company reports annual results on September 27, with the market expecting revenue of £14.3 billion and pretax profits of £860 million, giving 246p in earnings per share. Looking back to the previous peak in 2006, the shares fell almost 90% during the next two years as the slowdown hit. Sell. Wolseley at £36.89 -57p. Questor says “Sell”.

The Guardian

EU referendum fears weighing on company orders and investment: Orders among U.K. firms have fallen to their lowest level for almost three years as growing worries over this month’s EU referendum hit the British economy.

Mike Ashley admits to problems at Sports Direct warehouse: Mike Ashley, the Founder and Deputy Chairman of Sports Direct, has admitted for the first time to problems with the security and search procedures at the retailer’s Derbyshire warehouse – as he said the group’s Chief Executive will forgo a £4 million bonus in the wake of the scandal.

Former BHS owner Arcadia Group agreed to protect business: Retail Acquisitions, the former owner of BHS, pledged to keep all funds in the business and plough any proceeds from the sale of the group’s properties into its day-to-day running until a deal had been struck on the future of the BHS pension scheme, the Guardian understands.

Daily Mail

Luxury handbag maker Radley sold to owners of C&A: It started out as a stall selling handbags at Camden market but yesterday luxury label Radley was sold to the billionaire owners of retail chain C&A. Famous for its West- Highland terrier motif, the firm was sold by private equity firm Exponent for an undisclosed sum.

Asda Boss Andy Clarke plans to step down from top job at embattled supermarket as owner Walmart slams chain’s performance: Asda’s Chief Executive Andy Clarke has confirmed that he is preparing to step down from the top job at the supermarket chain as its U.S. owner Wal-Mart criticizes the U.K. businesses’ poor performance.

Fresh shame for accountancy giant KPMG as it is accused of conflict of interest over Ted Baker: KPMG faces yet another probe by the industry watchdog – this time over its work with fashion chain Ted Baker. The accountancy giant is under investigation by the Financial Reporting Council, the regulator responsible for promoting high quality accounting.

Daily Express

British holidaymakers dealt blow ahead of summer holidays as pound plunges: Overseas holidaymakers have been dealt a blow by a huge plunge in the value of the pound, after the most recent polls showed the Leave campaign is gaining ground in the upcoming referendum on membership of Europe.

Senior Tory slams Treasury’s ‘unreliable’ Brexit forecast in scathing Newsnight attack: The Treasury’s forecast forecasts on the impact of a Brexit are “not reliable” and remaining in the EU is “far riskier” for Britain’s economy, a senior Tory Minister has said.

The Scottish Herald

Capacity concerns in craft beer industry as growth surges: The Scottish craft beer industry needs urgent investment or it runs the risk of failing to realize its global potential, one of the sector’s leading names has declared.

No love for emerging markets, Gilbert declares: The Boss of Aberdeen Asset Management, Martin Gilbert, has declared that emerging markets remain “unloved” by investors.

Bingo firm aims for a full house in Scotland: Bingo firm Club 3000 has set out ambitious expansion plans after obtaining a multimillion pound refinancing package with Clydesdale Bank.

Muir Construction secures Gullane nursing home contract: Muir Construction has won a £5.75 million contract to re-build and expand the Muirfield nursing home in Gullane, owned by Randolph Hill Nursing Homes Group.

Alliance hires Canaccord as sole broker: Alliance Trust, the Dundee investment house subject to a merger approach by Lord Rothschild’s RIT Capital Partners, has appointed Canaccord Genuity as its sole broker with immediate effect.

BIG nets north-east wins: The Aberdeen office of public relations firm The BIG Partnership has won £350,000 of business from new clients in the first half of the year. The wins, which include a contract with The Bahrain Petroleum Company, BIG’s first client in the Middle East.

The Scotsman

New Affordable Housing Director for AS Homes: Housebuilder AS Homes (Scotland) has appointed industry veteran Roddy MacDonald as its new Affordable Housing Director.

EasyJet sees passenger numbers soar in May: Budget carrier EasyJet shrugged off fears sparked by recent terror attacks and air traffic control strikes as passenger numbers jumped last month.

Design firm styles flats at Edinburgh’s Quartermile: An Edinburgh interior design firm has been chosen as a preferred contractor to furnish properties in the ongoing Quartermile luxury apartment project.

City A.M.

U.K. automotive industry to accelerate investment plans: Suppliers to the U.K.’s car makers will invest £225 million over the next three years in a big boost to the U.K.’s manufacturing base.

Tom Hayes’ crowdfunding campaign breaks £20,000 mark: Tom Hayes’ crowdfunding campaign is gaining pace, having recently broken the £20,000 mark. The former UBS and Citigroup trader has turned to Fundrazr in an attempt to raise £150,000 to pay towards his legal costs of appealing to the Criminal Cases Review Commission.

World Energy Council slams U.K.’s “challenging” roll-out of smart meters: The U.K.’s roll-out of smart meters has been slammed as “challenging” by the World Energy Council.

Private equity companies expected to line up for GHD as Lion Capital plans auction: Leeds-based hair care company GHD could be sold by current private equity owner Lion Capital for more than £400 million.

Former Deutsche Bank trader Christian Bittar given green light to pursue civil case against FCA: A former Deutsche Bank trader has been given the go ahead to continue with a civil case against the City watchdog.

Shell mulls offshoring its legal eagles to cut costs: Shell is considering offshoring its legal centre in a bid to cut costs and improve efficiencies, it was revealed today.

Deutsche Bank is ditching its plans for a digital bank: Deutsche Bank was moving with the times with its plans for a new digital bank, revealed late last year in a board reshuffle. Now, it’s had a change of heart and has ditched plans for the new venture, a memo to staff from the bank’s Chief John Cryan reveals.

Argentine confectioner Havanna lists in the country’s first local IPO since 2013: Havanna, an Argentinian confectioner, has listed on the Buenos Aires Stock Exchange. It’s the country’s first local listing since 2013 and has been taken as a further sign of economic recovery in Argentina.

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