The Times
Delay hits exchanges’ merger vote: Deutsche Börse has been forced to delay the closing date of a vote on its merger with the London Stock Exchange by two weeks because of a “technical barrier” that precluded funds from voting on the deal.
U.S. banks wary of campaign to promote women: American investment banks are refusing to sign up to a Treasury campaign to push more women into senior roles in the City.
Halt on property fund is extended: Aberdeen Asset Management has extended the suspension of its £2.7 billion property fund by a further two days, citing the need for investors to be given enough time to “consider their options in these exceptional circumstances”.
Critics lie in wait for Carney as MPs query warning of rate rise: Mark Carney faces a bruising encounter this morning in his first appearance before MPs since the vote to quit the European Union.
Rate cut means little for most mortgages: Five out of six mortgage borrowers will see no immediate benefit if, as expected, the Bank of England cuts interest rates on Thursday.
Investment is hit by EU vote: Fears over Britain’s exit from the European Union have led to a “dramatic slump” in investment in U.K. start-ups, according to Beauhurst, a data company.
Weaker pound prompts Tata to pause sale of Port Talbot: The depreciation of sterling has helped to improve the economics of Tata Steel’s formerly heavily loss-making British steelmaking business, according to the Indian group’s Executive Director.
The Independent
U.K. shoppers put off big buys as Brexit hits confidence: Shoppers nationwide are putting off buying big ticket items and bracing for an economic slowdown, according to surveys. Numbers from Visa showed consumers cutting back on discretionary spending, such as hotels, restaurants and bars, as well as new cars and foreign travel.
Pound sterling lifted by reports of Andrea Leadsom quitting Tory leadership race: The pound jumped against the dollar in the wake of reports Andrea Leadsom is pulling out of the Tory leadership context.
Brexit economic shock equivalent to natural disaster, says OECD: The economic shock and disruption delivered by Brexit is on a par with the impact of devastating and unforeseen natural disasters, such as the 2011 Japanese earthquake, the OECD said.
Financial Times
Financial groups sign up to link Executive pay to senior jobs for women: Banks, insurers and asset Managers representing half of the U.K.’s financial services employees have signed up to a scheme that links Executive pay to targets for the number of women in senior roles.
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Burberry’s new Chief Executive Marco Gobbetti is a luxury veteran: Luxury retail veteran Marco Gobbetti, who will take over as Chief Executive at Burberry, has spent more than two decades in the upmarket fashion industry.
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Elbit Systems on hunt for acquisitions: Elbit Systems, the Israeli aerospace and defence company, says is on the hunt for acquisitions and is prepared to spend “hundreds of millions of dollars”, including in the U.K., where it is undeterred by Brexit.
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Rolls-Royce to secure control of engine partner: Rolls-Royce, the U.K. jet engine maker, plans to take control of Industria de Turbo Propulsores, a Spanish company that has been a partner on civil and defence aerospace projects.
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Russia sells 11% stake in Alrosa: Russia’s government has sold a 10.9% stake in diamond miner Alrosa for Rbs52.2 billion ($814 million) as part of a privatisation programme aimed at plugging the country’s budget deficit.
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WME-IMG buys Ultimate Fighting Championship for $4 billion: The Ultimate Fighting Championship, once derided as “human cockfighting”, has been snapped up by U.S. talent agency WME-IMG for $4 billion in one of the biggest sports deals on record.
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Thomson Reuters in $3.55 billion sale of IP and science business: Thomson Reuters is narrowing its focus to its core financial business with the $3.55 billion sale of a specialist science and intellectual property division to private equity.
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Siemens backs away from Brexit warnings: Siemens, Europe’s largest industrial conglomerate, has backed away from its earlier warnings that Brexit could make the U.K. a worse place to do business in and affect the group’s future British investment plans.
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UniCredit and Santander scramble to save asset manager merger: Italy’s UniCredit and Spain’s Banco Santander are scrambling to save a plan that would create one of Europe’s largest money Managers after the U.K.’s vote to leave the EU added to concerns about the outlook for the €5.3 billion deal.
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Lex:
Tesla Motors: material world: The Securities and Exchange Commission is investigating whether the carmaker violated a rule that “material” events must be disclosed, The Wall Street Journal reported on Monday evening.
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Workers on boards: the frenemy within: Were U.K. parliamentarians to divide on the motion “this House believes big business is doing a spiffing good job”, barely a handful would join the lobby marked Aye. Lectures on the moral dysfunction of U.K. business are now as common as complaints about the weather, and usually as effective.
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China’s used car market: fast and spurious: China’s used car market is big and will get much bigger. In 2009, China’s new car market became the largest in the world, surpassing that of the U.S. The youth of the country’s car fleet means the second-hand car market still has lots of room to develop.
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Lombard:
May spells out pay plan: “Phonetically plausible” is how a teacher described Little Miss Lombard’s spelling in her school report. The same can be said of plans by Theresa May, Britain’s next prime Minister, to make shareholders’ votes at yearly meetings binding.
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Hands-free driving: On Monday the government launched a consultation on the appropriate insurance framework for driverless cars. The Highway Code is also being amended to include guidance on robotic driving on motorways and parking safely by remote control.
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The Daily Telegraph
Businesses say ‘bold decisions’ needed to speed growth after Brexit vote: U.K. growth slowed ahead of the EU referendum, according to a closely-watched survey that urged the Government to “get on” with making decisions that will keep the country open for business after Brexit.
Italy faces ‘two lost decades’ as reforms stall, IMF warns: Italy faces “two lost decades” unless policymakers do more to raise living standards, clean up the country’s banks and control its massive debt mountain, the International Monetary Fund has warned.
Germany’s Siemens embraces ‘Project Optimism’ in Brexit U-turn: Europe’s largest industrial combine has vowed to press ahead with investment in Britain despite the vote to leave the EU, backing away deftly from earlier suggestions that Brexit would cause a painful freeze on new activities.
Tesla ‘investigated by SEC’ over handling of autopilot crash: Tesla, the electric car manufacturer, is reportedly being investigated by U.S. regulators over whether it breached securities law by failing to tell investors that one of its self-driving saloons had been involved in a fatal accident.
Robots will replace a quarter of business services workers by 2035, says Deloitte: A quarter of jobs in Britain’s business services sector are at “high risk” of automation within the next two decades, according to a new report.
Delays to Brexit could turn U.K. into ‘zombie member’ of the EU, says HSBC: A long, slow departure from the European Union could mean other members treat the U.K. as a “zombie,” as Britain is forced to obey EU rules but has less influence in setting them, according to HSBC’s Chief economist.
UFC set for £3.1 billion sale in record-breaking sports franchise deal: Ultimate Fighting Championship is expected to officially announce it is being sold for $4 billion (£3.1 billion) in what would be the largest franchise sale in sports history.
The Questor Column:
Intertek sees gains from weaker pound: Product testing company Intertek has benefited in recent years from high-profile scandals that sent companies scuttling to use its services. Food manufacturers left facing a lack of public confidence after the horse meat scandal in 2013 and automotive companies wanting independent testing after Volkswagen was found to be cheating emissions tests are just two of the sectors that Intertek has capitalised on, driving revenues up. In recent weeks, like other FTSE 100 companies, Intertek has benefited from the lower value of the pound because so much of its business is focused overseas. In 2015, just 7% of Intertek’s revenue was drawn from the U.K. As dipping confidence in the U.K. economy after the EU referendum pushes the value of the pound down, Intertek has enjoyed lower costs. As a result, some analysts have increased the target price of its shares to reflect the potential for higher earnings over the next three years. According to Intertek management research, there is significant customers’ interest in its Assurance business, where it audits and advises on a company’s processes and systems to ensure they comply with regulations. This part of the business currently contributes around 10% of the company’s revenue, but could be a good area of growth. Intertek’s Resources division, which accounts for 21% of its revenue, is experiencing challenging market conditions. This is the part of the business that provides services for the oil and gas sectors, as well as other commodities-based companies. Headwinds from improved currency position and potential M&A deals this year are likely to improve its performance in the short term. Questor says “Hold”.
The Guardian
FTSE enters bull market as May rival quits and Wall Street surges: The FTSE 100 index burst into bull market territory after Theresa May emerged as successor to David Cameron, providing a further boost to surging stocks on both sides of the Atlantic.
Theresa May’s plans to curb boardroom excess receive mixed reaction: Theresa May’s new proposals to crack down on boardroom excess and rebuild trust between corporate Britain and voters have received a mixed reaction from business leaders.
Consumer spending slowed to recession levels before EU referendum: Consumer spending grew at its slowest rate since the depths of the 2008-09 recession in the three months leading to the EU referendum, but retailers have blamed bad weather for the tough trading conditions.
Tata Steel refuses to guarantee future of Port Talbot plant: Tata Steel has refused to guarantee the future of the Port Talbot works, saying there are “multiple elements” that need to be overcome in order to secure a rescue deal for its U.K. business.
Daily Mail
Small businesses should look for growth opportunities beyond Europe post Brexit, says HSBC: Small businesses should look for growth opportunities beyond Europe after Brexit, according to HSBC.
£15.2 million for just eleven months work! Fury erupts over ‘extraordinary’ pay deal for BG Group Chief: BG’s Boss pocketed £15.2 million for 11 months’ work before stepping down when his company was taken over by rival Shell.
Household spending grows at its slowest pace in two years as families cut back on flights and new cars: Household spending grew at its lowest rate in over two years last month with flight bookings and car sales seeing the biggest falls, new findings suggest.
‘Augmented reality’ mobile phone game Pokemon Go helps give Nintendo a £5.8 billion boost: Nintendo received a £5.8billion boost after its mobile phone game Pokemon Go become an instant hit.
Profits fall at recruiter SThree as banks put hiring decisions on hold in the run-up to the EU referendum: Recruitment firm SThree has seen its profits hit by Brexit uncertainties after firms – in particular banks – put hiring decisions on hold in the run-up to Britain’s EU membership referendum.
Star Wars and James Bond movies bring blockbuster results for studios Owner Pinewood as profits rise 136%: The latest Star Wars and James Bond movies helped annual profits soar at studios Owner Pinewood Group, which also expects the Brexit plunge in the pound to give its business a boost.
Daily Express
Boeing in £3 billion deal with U.K. expected to create 2000 jobs: The Government is to buy nine maritime patrol aircraft as part of a £3 billion, 10-year partnership with Boeing. The Ministry of Defence said the P-8A Poseidon planes will be based at RAF Lossiemouth in Moray to help to protect the Trident nuclear weapons system and the U.K.’s two new aircraft carriers.
Companies have raised prices or cut profits to meet the cost of the living wage: Firms have increased prices or cut profits rather than make workers redundant to pay for the national living wage, a new study has revealed.
The Scottish Herald
Ineos Chief makes fresh case for fracking in Scotland: The Chief Executive of global petrochemicals giant Ineos has called for an overhaul of U.K. energy policy and for manufacturing to be placed at the heart of the economy as Britain faces up to life on the outside of the European Union (EU).
Faroe boosted by Brasse development: Faroe Petroleum has been buoyed by the results of further appraisal work in its potentially pivotal Brasse discovery in the Norwegian North Sea.
Repsol reinforces North Sea commitment: Repsol Sinopec Resources U.K. has reinforced its long-term commitment to the North Sea by announcing new major contracting strategies.
Ithaca output running ahead of schedule: Ithaca Energy has declared that output volumes are running ahead of guidance as it said work on the floating production vessel that will be used on the Greater Stella Area is nearing completion.
Brexit vote could delay sale of RBS Greek shipping book: RBS is facing a Brexit-shaped setback in its bid to sell-off its Greek shipping book, sources have told Reuters.
New medical firm from ReproCELL launched in Glasgow: Japanese regenerative medical firm ReproCELL is to merge two of its companies, with the new group based in Glasgow.
BPI reveals scheme document error: British Polythene Industries, the Greenock-based packaging firm, has admitted it may have sent out scheme documents relating to its acquisition by RPC with pages missing.
U.K. Steel Enterprise business park gets new tenants: U.K. Steel Enterprise (U.K.SE) has found a raft of new tenants at its Grovewood Business Centre at Strathclyde Business Park in Bellshill, including the arrival of optical software firm, Xeyex.
The Scotsman
Campion Homes sets out foundations for growth with BGF: A family-owned housebuilder plans to build hundreds of homes over the next five years after receiving a multi-million-pound investment to accelerate its growth programme.
Collagen revenues treble after ‘transformational’ year: Collagen Solutions has seen its annual revenues more than treble following a “transformational” year for the Glasgow-based life sciences firm.
Data Lab to double size of master’s degree programme: Scotland’s publicly-funded innovation centre for data science is set to more than double the number of spaces it sponsors on master’s degree courses amid rising demand in the field of “big data”.
New managing Director for Entrepreneurial Scotland: Business network Entrepreneurial Scotland has appointed James Stuart to the new role of managing Director.
Star Wars and Bond boost profits at Pinewood studios: Filming on the latest Star Wars and James Bond films has helped lift profits at movie studio Pinewood Group. Unveiling its full-year results, the firm also said the slide in sterling following the Brexit vote would give it a boost.
Edinburgh mortgage adviser Exchange opens for business: A new “impartial mortgage advice and lending service” aimed at helping home-buyers from start to finish has been launched in Edinburgh.
City A.M.
Lack of IT security skills will lead to increased risk of cyber threats in the next few years: Shortage of IT security talent will lead to more cyber security attacks in the next five years, according to a new report by IT recruitment consultancy Robert Half Technology.
ITV offloads UTV Ireland to Virgin Media for an undisclosed sum: ITV has agreed to sell UTV Ireland to Liberty Global’s Virgin Media, for an undisclosed sum. Virgin Media will also take over a 10-year programme supply agreement with ITV Global Entertainment, whose ITV Studios produces the likes of long-running soap opera Coronation Street and breakfast chat show Good Morning Britain.
Virgin Atlantic buys up eco-friendly Airbus A350s in $4.4 billion deal: Virgin Atlantic has placed a $4.4 billion (£3.4 billion) order for 12 of Airbus’ largest twin-engined, A350-1000 aircraft. The aircraft will be powered with the more environmentally-friendly Rolls-Royce Trent XWB engines, which generate around 30% lower carbon dioxide emissions.
Odeon Owner in talks to sell chain for £1 billion to AMC Entertainment Holdings: The Owner of Odeon is in talks with AMC Entertainment Holdings to sell the cinema chain in a £1 billion deal.
Asset management growth has “stalled” to 2008 levels, new report finds: The global growth of asset management “stalled” in 2015, marking its worst year since the 2008 financial crisis, a new report has found.
Petrofac pulls plug on contract with Malaysian state-owned oil firm Petronas: Petrofac shares popped after the oilfield services provider scrapped a contract with Malaysia’s state-owned oil firm.
