Today’s Newspapers: The Times, Independent, FT, Telegraph, Guardian, Mail, Express, Herald 100516

The Times

Former Deutsche Chief guilty of insider trading: A former top City banker has been found guilty of insider trading, marking the end of Britain’s largest inquiry into illegal dealing in the City after a nine-year investigation costing more than £10 million.

Deal to increase oil prices may be dead in the water: Hopes of a meaningful deal to boost oil prices were evaporating, after Saudi Arabia’s appointment of a new oil Minister consolidated the grip of a powerful reformist prince who has said that he does not care about the price of crude.

LendingClub Boss exits the platform: The Chief Executive of the world’s largest peer-to-peer platform has resigned amid a lending scandal that will heighten concerns about the safety of the fast-growing industry.

Russian arrested over City ‘money laundering’: A Russian broker working at a big global financial services company has been arrested as part of an investigation into alleged money laundering by a criminal gang after staff at Intercontinental Exchange, Owner of the New York Stock Exchange, became suspicious of trades placed through his account.

Root cause of banking scandals is cultural failure, claims Bailey: Failings in culture were at the heart of every misconduct scandal and bank failure in recent history, a deputy Governor of the Bank of England has claimed.

Krispy Kreme gobbled up on the go for $1.35 billion: Doughnut with your coffee? Krispy Kreme, the American doughnut company, is to be taken private by a German conglomerate that has been busy buying up coffee businesses across the United States.

Imagination runs wild after Chinese take stake: An acquisitive Chinese state-backed chip maker with a hefty war chest emerged with a stake in Imagination Technologies, prompting chatter that it could trigger a battle with Apple for the iPhone supplier.

The Independent

Housing bubble ‘has burst’ after sellers slash asking prices by average of £25,265: The housing bubble has burst, analysts have said, after sellers started slashing money off their asking prices and accepting offers up to 10% less than the property was listed.

Facebook wins China trademark case as local media suggests site could get unblocked by ‘Great Firewall’: Facebook has won a huge court ruling in China against another company using a very similar name. The decision is an unexpected victory for Facebook, against another firm that had a drink called “face book”.

Tax havens ‘serve no useful economic purpose’ and benefit rich at expense of poor, leading economists warn: Tax havens serve no useful economic purpose and simply increase inequality, more than 300 leading economists have warned.

Financial Times

Brexit and prime London fears take shine off U.K. housebuilders: A three-year winning streak in which the share prices of U.K. housebuilders more than trebled has gone into reverse this year as investor appetite for bricks and mortar has paled.

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Indian group emerges as late bidder for Tata Steel: JSW Steel, one of India’s largest steel groups, has emerged as a last-minute bidder for Tata Steel’s ailing U.K. steel operations.

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‘Tens of thousands of jobs will go’ in the City if U.K. leaves EU: George Osborne has warned of “tens of thousands” of potential job losses in the financial services industry if Britain leaves the EU, claiming that 285,000 jobs in the sector are linked to business with Europe.

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EU Commission expected to block Three-O2 merger: European commissioners are expected to meet this week to reject formally CK Hutchison’s £10.5 billion takeover of mobile operator Telefonica’s O2 in the U.K.

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Freeport sells key copper mine for $2.7 billion to China Molybdenum: Freeport-McMoRan on Monday outlined plans to sell its largest African copper mine to China Molybdenum for $2.65 billion, in the U.S. mining company’s most decisive step so far to reduce its $20 billion debt load.

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Technology transforms Big Four hiring practices: The Big Four professional services firms — among the largest employers of graduates globally — are drastically rethinking their hiring practices as technology transforms the way companies are audited.

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Go Outdoors retail chain explores sale: Go Outdoors has hired KPMG to explore a sale of the privately owned group, whose stores sell goods including waterproof clothing, tents and bicycles.

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G4S shares rise as it wins new contracts worth £450 million: Shares in G4S surged nearly 6% on Monday, their biggest gain since 2011, as the world’s largest security company pointed to an increase in sales outside the U.K., including work running Australian prisons.

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Rough diamond sells for a record $63 million: An 813 carat rough diamond called The Constellation has been sold for $63 million — a record value for an unpolished stone according to Lucara Diamond Corp, the Canadian mining company that found it.

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Mystery investor eyes 10% Sotheby’s stake: Sotheby’s disclosed on Monday that an outside investor was considering building a 10% stake as the New York auction house reported a deeper than expected first-quarter loss.

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Lex:

Migration: to labour the point: Set aside for a moment the matter of trade (no one is clear what trade deal would follow Brexit). When it comes to migration, the position is much clearer. The Out camp wants a points-based system aimed at encouraging fewer but “better” EU migrants to the U.K.’s shores.

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Lending Club: man overboard: A rough stretch for the marketplace lenders turned ugly on Monday as Renaud Laplanche, the founder and Chief Executive of Lending Club, left the company in the wake of a scandal. The company found that a $22 million loan had been improperly sold to a third party buyer. Shares in Lending Club, which had already fallen 70% since early 2015, lost another 27%.

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Intesa Sanpaolo: unsure thing: In a show of its strength, Intesa Sanpaolo wants to pay out €7 billion in dividends over two years, in cash not scrip. A dividend yield of more than 8%, among the highest in Europe, suggests that investors are sceptical.

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Lombard:

Flexit clauses reflect a queasy outcome and a cheesy coinage: Many in the City object violently to the idea of “Flexit” clauses. What appals them most is the thought that anyone could coldbloodedly coin a term as cheesy as “Flexit” to describe a loan rate surcharge triggered by a Brexit vote.

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Tally ho, not tally how: The London estate agency sticks property vendors with a 2.5% fee compared with the 1.5% from rivals. Unsurprisingly, Chief Executive Nic Budden does not come cheap, either. His salary has risen 19% this year to £550,000, even though Foxtons’ shares have dropped by about 50% since he took over in mid-2014.

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The Daily Telegraph

Channel 4 escapes privatisation after Downing Street intervention: Channel 4 will escape full privatisation following an intervention from Downing Street, The Telegraph understands. A series of other major reforms of the state-owned broadcaster remain under consideration, however, senior Government sources revealed.

Pizza Hut to create more than 3,000 jobs as it eyes U.K. expansion: Takeaway firm Pizza Hut is planning to serve up at least 3,000 new jobs as it embarks on a £40 million expansion in the U.K. and Ireland over the next four years.

Britain to begin orders of Nimrod replacement spyplanes: Britain will order the first of a new generation of spy planes from Boeing in the next few months as it beefs up its maritime surveillance capabilities.

RocketSpace, home to early Uber and Spotify, launches in London to create new ‘unicorns’: The San Francisco workspace that was home to tech successes Uber, Blippar, Supercell and Spotify in their early years is expanding to the U.K. as part of a new partnership with RBS.

Foxtons faces pay revolt: London estate agency Foxtons is set to become the latest casualty of shareholder revolts after advisers recommended that investors vote against its Chief Executive’s pay package.

Boom in cafe culture boosts frothy coffee shop property market: The number of cafes has grown by two fifths in two years, as the U.K.’s coffee market continues to froth. According to Savills, the number of chain coffee shops in the U.K. has grown by 39% since the end of 2013. In Scotland, they have almost doubled in two years, with 45% more stores.

BAE’s Boss in waiting Charles Woodburn starts work at the defence giant: Charles Woodburn, the man expected to take over the controls at BAE Systems, begins in his new job at the defence group in what is expected to be a low-key introduction to the business.

Growth crisis threatens European social fabric, warns monetary Chief: The fragile global recovery could be derailed unless governments step up efforts to support growth and strengthen the European banking system, two central bankers have warned.

Italian pension fund buys stake in Amazon’s new London HQ: Italian pension fund Enpam has made its first foray into London’s commercial property market by buying a 50% stake in the development that will house Amazon’s new U.K. headquarters.

Strike! All Star Lanes to add 15 new sites after years of stagnation: Bowling alley business All Star Lanes, which counts pop star Rihanna among its customers, is poised for a massive growth spurt following a successful turnaround by new Boss Christian Rose, a leisure industry veteran.

The Questor Column:

Dignity shares fall on lower death rate: Funeral parlour operator Dignity has delivered excellent gains for investors for more than a decade as it consolidates the U.K. sector, but lower revenues and profits at the start of the year due to a lower death rate, sent the shares down more than 1%. The U.K. market for funeral operators has been dominated by small, family-owned operators for many years. Dignity realised that this model was inefficient, as it tied up a lot of capital on items such as hearses and property, which in turn increased costs. Dignity operates 768 funeral parlours and 39 crematoria across the U.K., a sharp increase on the 567 funeral parlours it operated six years earlier. The company experienced a sharp increase in the number of deaths last year caused by a cold winter and a bad flu season. The shares hit an all-time-high of £26 in August last year. The company now says that the U.K. death rate is returning to more normal levels, and with it revenue and profits are falling. Dignity said that revenue was down 5% to £81.2 million and underlying operating profits down 13% to £31.1 million during the 13 weeks to March 25. The U.K. death rate was down 11% to 156,000 during the first three months of the year. The trading is still well within the normal ranges, just below last year’s peak. Consensus is for full-year pretax profits of £71 million, giving 112p in earnings per share. Dignity still has room to expand: it only provides funeral services for about a quarter of the U.K. During the 12 years since the company came to the stock market, it has returned a total of £2.30 per share by way of special dividends, and £1.38 in annual dividends. That said, for the long-term investor this remains an excellent share that offers a small but steady income with an impressive track record. Hold. Dignity at £24.71-34p. Questor says “Hold”.

The Guardian

Eurozone Ministers to examine how to ease Greece’s debt burden: Eurozone finance Ministers have promised to examine how to ease Greece’s colossal debt burden, with writing off bad loans remaining off the table.

Tata Steel says seven firms in frame to bid for rest of U.K. operations: Seven firms are weighing up bids for Tata Steel’s entire U.K. business, the company has revealed, raising hopes of a rescue deal that could save up to 12,000 jobs.

HMV moves ahead of Tesco as second biggest entertainment retailer: HMV has reclaimed is position as the second biggest entertainment retailer in the U.K. as high street chains enjoy a revival against their online competitors.

U.K. retailers suffer sharp drop in sales: British retailers suffered the sharpest drop in sales for eight months in April as more cautious shoppers reined in spending and cold weather affected sales of spring and summer clothing, industry figures show.

Daily Mail

World’s biggest oil company set to join London Stock Exchange in biggest share listing of all time: The world’s biggest oil company looks set to join the London Stock Exchange in the biggest share listing of all time. Saudi Arabia is planning to sell a 5% stake in its £1.7trillion oil giant Saudi Aramco to investors – raising a thumping £85 billion.

Top banker and former adviser to Sir Philip Green both guilty of involvement in Britain’s biggest insider trading scam: A top banker and a former adviser to Sir Philip Green have been found guilty of involvement in Britain’s biggest insider trading scam.

Shares in pet healthcare specialist Premier Veterinary Group tumble 16% as it looks to expand in the United States: Shares in pet healthcare specialist Premier Veterinary Group tumbled nearly 16% after it plunged deeper into the red as it looks to expand in the United States.

Undertaker chain Dignity urges Government to reuse old burial sites in face of graveyard overcrowding crisis: Undertaker chain Dignity has urged the Government to reuse old burial sites in the face of a graveyard overcrowding crisis.

Daily Express

Post Offices closed amid major technical glitch: Every Post Office branch in Britain was put of action as a technical glitch brought the network to its knees.

Boots to profit from services you should get for free at your GP: Pharmacy giant Boots has been expanding the number of paid-for services customers should be able to get free with their local GP.

The Scottish Herald

Standard Life Investments announces ‘strategic relationship’ with Chinese firm: Standard Life Investments is strengthening its presence in China by forming a strategic relationship with one of the country’s oldest asset Managers and launching a joint fund to invest in emerging markets.

U.K. retail sales flat again, amid ‘dire’ month for clothing and footwear category: The value of U.K. retail sales in April was unchanged from the same month of last year, the latest industry figures show.

Signature Pub Group acquires first Glasgow bars: Signature Pub Group has made its first significant move into the west of Scotland with the acquisition of five units owned by brewer Tennent’s through its Thistle Pub Company subsidiary.

Scots tech firm launches ‘game-changing’ sensor for wearable devices: Technology firm Pyreos has launched a new range of sensors with gesture recognition technology that could benefit users of wearable technology.

Atlantis completes Scottish Power Renewables project deal: Atlantis Resources has completed its acquisition of Scottish Power Renewables’ tidal power assets, which it bought in exchange for a six% stake in its subsidiary, Tidal Power Scotland.

National Living Wages prompts record rise in temp pay rates in Scotland: April saw a surge in hourly rates of pay for temporary staff amid the introduction of the National Living Wage, according to the latest Markit Report on Jobs: Scotland.

Oil and gas companies could face ‘legal headaches’ over cost-cutting plans: New rules designed to maximise the recovery of oil and gas from the U.K. North Sea while driving down costs could create some ‘legal headaches’ for oil and gas companies in the months ahead, a law firm is warning.

The Scotsman

Wood Group wins pair of Iraq contracts worth $140 million: Oil and gas contractor Wood Group has secured two new contracts, worth more than $140 million (£97 million), in Iraq.

Greggs sales slow amid ‘softer’ high street trading: Sandwich chain Greggs, which earlier this year unveiled plans to close a Midlothian bakery, has seen its sales hit by tough conditions on the high street.

Hospitals to hospitality – new hire for Surgeons’ Hall Owner: The commercial arm of Edinburgh’s Royal College of Surgeons is eyeing a further record performance after hiring a hospitality expert to drive up revenues.

Law firm Gillespie Macandrew bolsters Glasgow office: Gillespie Macandrew said it has appointed Greg Peebles as a partner in its Glasgow office.

City A.M.

China’s drowning in debt, defaults are rising and investors have turned bearish as corporates must pay back billions this year: China’s massive debt levels have started to spook investors. The country’s corporate borrowers face a record $571 billion of debt that’s due to mature this year, according to figures from Bloomberg.

Online sales hit the brakes: Digital channel suffers slow growth in April: Online retail sales growth has slumped to its lowest level in three years, piling pressure on retailers already hard hit by a customer retreat from the high street.

Greek debt relief deal OK’ed after German backdown to IMF: Greece’s battered economy received some good news after Eurozone finance Ministers agreed to debt relief measures if new reforms come to fruition.

Gruppo Campari’s sales go flat in first quarter: Italian drinks firm Gruppo Campari posted flat results in the first quarter of 2016, with a small boost from an early Easter, though losses were driven by currency headwinds and losses from the firm’s Jamaican sugar company.

U.K. set for take-off in “drones for business” industry worth billions: The market for drones in business – from transporting goods to servicing ships and filming TV shows – could be worth $127.3 billion (£88 billion) and the U.K. is destined to play a major part in that, new research reveals.

Japanese and European investment banks agree merger to create global M&A advisory: A Japanese investment bank has agreed a merger with a European peer to create one of the world’s largest listed M&A advisories.

U.K. banks set for U.S. meeting to iron out Iran trade concerns: Some of the biggest banks in the U.K. have been invited to meet U.S. secretary of state John Kerry to discuss last year’s lifting of economic sanctions on Iran.

Oil major Total makes near €1 billion wager on renewable energy with bid for battery maker Saft: French oil major Total made a €950 million (£750 million) bid for battery maker Saft, effectively increasing its wager on the renewable energy sector.

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